Question 1

Payments from a defined benefits plan will be determined by the investment performance of the retirement funds.

Accepted Answer

A) True 
 B)False

Question 2

Home Appliance Warehouse,Inc.would like to set up a retirement plan for its employees that encourage employees to save for their own retirement.The company is willing to match employee contributions.Which of the following plans would be appropriate in this situation?

Accepted Answer

A)  Cash balance plan 
B)  403(b)plan 
C)  457 plan 
D)  401(k)plan 
E)  b,c,and d 
A)  Cash balance plan 
B)  403(b)plan 
C)  457 plan 
D)  401(k)plan 
E)  b,c,and d

Question 3

Even the best retirement plan needs to be reviewed every few years.

Accepted Answer

A) True 
 B)False

Question 4

When setting retirement goals you should consider

Accepted Answer

A)  what you want to do in retirement. 
B)  your expected standard of living. 
C)  your proposed level of income. 
D)  special retirement activities and projects. 
E)  all of these. 
A)  what you want to do in retirement. 
B)  your expected standard of living. 
C)  your proposed level of income. 
D)  special retirement activities and projects. 
E)  all of these.

Question 5

To be eligible for social security retirement benefits,30 quarters of covered employment are generally needed.

Accepted Answer

A) True 
 B)False

Question 6

At the same time as employers are cutting back on traditional pension plans,more are offering 401(k)plans.

Accepted Answer

A) True 
 B)False

Question 7

If an annuity plan is designed so that the monthly payment is adjusted by the actual investment experience of the insurer,it is

Accepted Answer

A)  a fixed dollar annuity. 
B)  an equity annuity. 
C)  a variable annuity. 
D)  an uncertain annuity. 
E)  a temporary annuity. 
A)  a fixed dollar annuity. 
B)  an equity annuity. 
C)  a variable annuity. 
D)  an uncertain annuity. 
E)  a temporary annuity.

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-[Earned income | 401k's] has accounted for a growing amount of total retirement income.

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 9

Annuity premiums are paid to the insurance company during the accumulation period.

Accepted Answer

A) True 
 B)False

Question 10

When one estimates retirement needs,you start with a projection of expenses stated in current dollars.

Accepted Answer

A) True 
 B)False

Question 11

____ are exclusively for the self-employed person and his/her employees.

Accepted Answer

A)  Keogh plans. 
B)  SEPs. 
C)  401(k)plans. 
D)  a and b 
E)  a,b,and c 
A)  Keogh plans. 
B)  SEPs. 
C)  401(k)plans. 
D)  a and b 
E)  a,b,and c

Question 12

Fully insured status requires 40 ____ of employment covered by social security.

Accepted Answer

A)  weeks 
B)  months 
C)  quarters 
D)  periods 
E)  years 
A)  weeks 
B)  months 
C)  quarters 
D)  periods 
E)  years

Question 13

An IRA is a type of an investment.

Accepted Answer

A) True 
 B)False

Question 14

By itself,Social Security is sufficient to allow a worker and spouse to maintain their preretirement standard of living.

Accepted Answer

A) True 
 B)False

Question 15

Short-term retirement planning usually involves

Accepted Answer

A)  3 to 5 year time horizons. 
B)  waiting until age 50 to start planning. 
C)  the need to save large amounts annually. 
D)  the use of more risky investments. 
E)  reducing inflation projections. 
A)  3 to 5 year time horizons. 
B)  waiting until age 50 to start planning. 
C)  the need to save large amounts annually. 
D)  the use of more risky investments. 
E)  reducing inflation projections.

Question 16

Employees of a nonprofit corporation can contribute to a(n)

Accepted Answer

A)  401(k) 
B)  Kehoe Plan 
C)  403(b) 
D)  HR10 
E)  501(c)3 
A)  401(k) 
B)  Kehoe Plan 
C)  403(b) 
D)  HR10 
E)  501(c)3

Question 17

It is extremely wise to contribute at least as much to a 401(k)plan as one's employer will match.

Accepted Answer

A) True 
 B)False

Question 18

Miles has no retirement plan at work.Therefore,$2,000 contributed to his regular IRA will be tax deductible.

Accepted Answer

A) True 
 B)False

Question 19

The Employee Retirement Income Security Act (ERISA)provides

Accepted Answer

A)  funding of retirement plans. 
B)  insurance for retirement plans when employees change employers. 
C)  for mandatory retirement plans. 
D)  minimum standards for retirement plans. 
E)  trust funds for retirement. 
A)  funding of retirement plans. 
B)  insurance for retirement plans when employees change employers. 
C)  for mandatory retirement plans. 
D)  minimum standards for retirement plans. 
E)  trust funds for retirement.

Question 20

Government research indicates that about 60 percent of households approaching retirement age have 401(k)accounts.

Accepted Answer

A) True 
 B)False

Payments from a defined benefits plan will be determined by the investment performance of the retirement funds.

Home Appliance Warehouse,Inc.would like to set up a retirement plan for its employees that encourage employees to save for their own retirement.The company is willing to match employee contributions.Which of the following plans would be appropriate in this situation?

Even the best retirement plan needs to be reviewed every few years.

When setting retirement goals you should consider

To be eligible for social security retirement benefits,30 quarters of covered employment are generally needed.

At the same time as employers are cutting back on traditional pension plans,more are offering 401(k)plans.

If an annuity plan is designed so that the monthly payment is adjusted by the actual investment experience of the insurer,it is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Earned income | 401k's] has accounted for a growing amount of total retirement income.

Annuity premiums are paid to the insurance company during the accumulation period.

When one estimates retirement needs,you start with a projection of expenses stated in current dollars.

____ are exclusively for the self-employed person and his/her employees.

Fully insured status requires 40 ____ of employment covered by social security.

An IRA is a type of an investment.

By itself,Social Security is sufficient to allow a worker and spouse to maintain their preretirement standard of living.

Short-term retirement planning usually involves

Employees of a nonprofit corporation can contribute to a(n)

It is extremely wise to contribute at least as much to a 401(k)plan as one's employer will match.

Miles has no retirement plan at work.Therefore,$2,000 contributed to his regular IRA will be tax deductible.

The Employee Retirement Income Security Act (ERISA)provides

Government research indicates that about 60 percent of households approaching retirement age have 401(k)accounts.

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

Payments from a defined benefits plan will be determined by the investment performance of the retirement funds.

Home Appliance Warehouse,Inc.would like to set up a retirement plan for its employees that encourage employees to save for their own retirement.The company is willing to match employee contributions.Which of the following plans would be appropriate in this situation?

Even the best retirement plan needs to be reviewed every few years.

When setting retirement goals you should consider

To be eligible for social security retirement benefits,30 quarters of covered employment are generally needed.

At the same time as employers are cutting back on traditional pension plans,more are offering 401(k)plans.

If an annuity plan is designed so that the monthly payment is adjusted by the actual investment experience of the insurer,it is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Earned income | 401k's] has accounted for a growing amount of total retirement income.

Annuity premiums are paid to the insurance company during the accumulation period.

When one estimates retirement needs,you start with a projection of expenses stated in current dollars.

____ are exclusively for the self-employed person and his/her employees.

Fully insured status requires 40 ____ of employment covered by social security.

An IRA is a type of an investment.

By itself,Social Security is sufficient to allow a worker and spouse to maintain their preretirement standard of living.

Short-term retirement planning usually involves

Employees of a nonprofit corporation can contribute to a(n)

It is extremely wise to contribute at least as much to a 401(k)plan as one's employer will match.

Miles has no retirement plan at work.Therefore,$2,000 contributed to his regular IRA will be tax deductible.

The Employee Retirement Income Security Act (ERISA)provides

Government research indicates that about 60 percent of households approaching retirement age have 401(k)accounts.

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