Question 1

Depending on your age,Social security retirement benefits could be reduced because of employment income.

Accepted Answer

A) True 
 B)False

Question 2

The cash balance retirement plan is being used to replace traditional defined benefit plans.

Accepted Answer

A) True 
 B)False

Question 3

Jamie has worked for ABC Printing for 5 years.During this period ABC Printing has contributed $25,000 to her non-contributory retirement plan.Assuming ABC uses cliff vesting,the longest period allowed,how much will Jamie be able to roll into an IRA if she left ABC Printing?

Accepted Answer

A)  $ 0 
B)  $ 5,000 
C)  $10,000 
D)  $20,000 
E)  $25,000 
A)  $ 0 
B)  $ 5,000 
C)  $10,000 
D)  $20,000 
E)  $25,000

Question 4

Fully insured status for Social Security requires ____ quarters of coverage.

Accepted Answer

A)  6 
B)  10 
C)  25 
D)  40 
E)  50 
A)  6 
B)  10 
C)  25 
D)  40 
E)  50

Question 5

When estimating retirement needs,you use the before-retirement investment return rate to adjust the current dollar shortfall to the actual shortfall at retirement.

Accepted Answer

A) True 
 B)False

Question 6

Bill has worked for White Drywall for 4 years.During this period White Drywall has contributed $25,000 to his retirement plan.Assuming the company uses graded vesting,how much will Bill be able to roll into an IRA if he left White Drywall at the end of 3 years?

Accepted Answer

A)  $ 0 
B)  $ 5,000 
C)  $10,000 
D)  $15,000 
E)  $20,000 
A)  $ 0 
B)  $ 5,000 
C)  $10,000 
D)  $15,000 
E)  $20,000

Question 7

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-If your employer matches your 401(k)contributions,you should contribute at least [the maximum allowed for tax deferrable | the amount matched by your employer].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 8

If you work nine years under the social security system,you are

Accepted Answer

A)  fully insured. 
B)  partially insured. 
C)  privately insured. 
D)  currently insured. 
E)  uninsured. 
A)  fully insured. 
B)  partially insured. 
C)  privately insured. 
D)  currently insured. 
E)  uninsured.

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Kurt receives social security benefits and also received $55,000 wages during the year.His social security benefits will be [totally | partially] taxable.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 10

In short-term retirement planning you estimate the required level of retirement income as a percentage of current income,fund that amount,and then adjust that number every 3 to 5 years.

Accepted Answer

A) True 
 B)False

Question 11

One can maximize the monthly Social Security benefit amount by delaying taking retirement benefits until age

Accepted Answer

A) 	62 
B) 	65 
C) 	67 
D) 	70 
E) 	75 
A) 	62 
B) 	65 
C) 	67 
D) 	70 
E) 	75

Question 12

As social security covers more employees,employer-provided pensions and individual retirement plans are covering fewer.

Accepted Answer

A) True 
 B)False

Question 13

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-[SEP | Keogh] plans are easier to establish.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 14

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The costs of investing in a variable annuity is typically [higher | lower] than investing in mutual funds.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 15

If you withdraw funds from a pension plan before age 59   ,you will have to pay a ____ federal income tax penalty.

Accepted Answer

A)  5%. 
B)  10% 
C)  15% 
D)  20% 
E)  25% 
A)  5%. 
B)  10% 
C)  15% 
D)  20% 
E)  25%

Question 16

With a non-contributory pension plan,the employer makes no financial contribution to the account.

Accepted Answer

A) True 
 B)False

Question 17

The cost of an annuity is greater for females than it is for males.

Accepted Answer

A) True 
 B)False

Question 18

ERISA was passed to protect employees participating in private employer retirement plans.

Accepted Answer

A) True 
 B)False

Question 19

Earned income has accounted for a growing amount of total retirement income.

Accepted Answer

A) True 
 B)False

Question 20

The amount accumulated in a defined contribution plan will be determined,at least in part,by the investment performance of the retirement funds.

Accepted Answer

A) True 
 B)False

Depending on your age,Social security retirement benefits could be reduced because of employment income.

The cash balance retirement plan is being used to replace traditional defined benefit plans.

Jamie has worked for ABC Printing for 5 years.During this period ABC Printing has contributed $25,000 to her non-contributory retirement plan.Assuming ABC uses cliff vesting,the longest period allowed,how much will Jamie be able to roll into an IRA if she left ABC Printing?

Fully insured status for Social Security requires ____ quarters of coverage.

When estimating retirement needs,you use the before-retirement investment return rate to adjust the current dollar shortfall to the actual shortfall at retirement.

Bill has worked for White Drywall for 4 years.During this period White Drywall has contributed $25,000 to his retirement plan.Assuming the company uses graded vesting,how much will Bill be able to roll into an IRA if he left White Drywall at the end of 3 years?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -If your employer matches your 401(k)contributions,you should contribute at least [the maximum allowed for tax deferrable | the amount matched by your employer].

If you work nine years under the social security system,you are

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Kurt receives social security benefits and also received $55,000 wages during the year.His social security benefits will be [totally | partially] taxable.

In short-term retirement planning you estimate the required level of retirement income as a percentage of current income,fund that amount,and then adjust that number every 3 to 5 years.

One can maximize the monthly Social Security benefit amount by delaying taking retirement benefits until age

As social security covers more employees,employer-provided pensions and individual retirement plans are covering fewer.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[SEP | Keogh] plans are easier to establish.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The costs of investing in a variable annuity is typically [higher | lower] than investing in mutual funds.

If you withdraw funds from a pension plan before age 59 ,you will have to pay a ____ federal income tax penalty.

With a non-contributory pension plan,the employer makes no financial contribution to the account.

The cost of an annuity is greater for females than it is for males.

ERISA was passed to protect employees participating in private employer retirement plans.

Earned income has accounted for a growing amount of total retirement income.

The amount accumulated in a defined contribution plan will be determined,at least in part,by the investment performance of the retirement funds.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Preserving Your Estate

Filters

Exam 14: Planning for Retirement

Depending on your age,Social security retirement benefits could be reduced because of employment income.

The cash balance retirement plan is being used to replace traditional defined benefit plans.

Jamie has worked for ABC Printing for 5 years.During this period ABC Printing has contributed $25,000 to her non-contributory retirement plan.Assuming ABC uses cliff vesting,the longest period allowed,how much will Jamie be able to roll into an IRA if she left ABC Printing?

Fully insured status for Social Security requires ____ quarters of coverage.

When estimating retirement needs,you use the before-retirement investment return rate to adjust the current dollar shortfall to the actual shortfall at retirement.

Bill has worked for White Drywall for 4 years.During this period White Drywall has contributed $25,000 to his retirement plan.Assuming the company uses graded vesting,how much will Bill be able to roll into an IRA if he left White Drywall at the end of 3 years?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -If your employer matches your 401(k)contributions,you should contribute at least [the maximum allowed for tax deferrable | the amount matched by your employer].

If you work nine years under the social security system,you are

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Kurt receives social security benefits and also received $55,000 wages during the year.His social security benefits will be [totally | partially] taxable.

In short-term retirement planning you estimate the required level of retirement income as a percentage of current income,fund that amount,and then adjust that number every 3 to 5 years.

One can maximize the monthly Social Security benefit amount by delaying taking retirement benefits until age

As social security covers more employees,employer-provided pensions and individual retirement plans are covering fewer.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[SEP | Keogh] plans are easier to establish.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The costs of investing in a variable annuity is typically [higher | lower] than investing in mutual funds.

If you withdraw funds from a pension plan before age 59 ,you will have to pay a ____ federal income tax penalty.

With a non-contributory pension plan,the employer makes no financial contribution to the account.

The cost of an annuity is greater for females than it is for males.

ERISA was passed to protect employees participating in private employer retirement plans.

Earned income has accounted for a growing amount of total retirement income.

The amount accumulated in a defined contribution plan will be determined,at least in part,by the investment performance of the retirement funds.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Preserving Your Estate

Filters