Question 1

Attractive features of a 401(k)plan can include

Accepted Answer

A)  guaranteed investment return and tax deferral. 
B)  tax deferral and liquidity. 
C)  liquidity and matching contributions. 
D)  matching contributions and tax deferral. 
E)  tax deferral and liquidity 
A)  guaranteed investment return and tax deferral. 
B)  tax deferral and liquidity. 
C)  liquidity and matching contributions. 
D)  matching contributions and tax deferral. 
E)  tax deferral and liquidity

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-In general,the tax law changes made in 2001 [increased | decreased] the tax advantages for retirement accounts.

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 3

Tax-free earnings can be gotten from investments in

Accepted Answer

A)  Roth IRAs. 
B)  Traditional IRAs. 
C)  SEP plans. 
D)  401(k)plans. 
E)  All of the above 
A)  Roth IRAs. 
B)  Traditional IRAs. 
C)  SEP plans. 
D)  401(k)plans. 
E)  All of the above

Question 4

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Most people today must have worked in a job covered by social security for the equivalent of at least [4 years | 10 years] to be fully insured and therefore eligible for retirement benefit payments.

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 5

Variable annuities are usually better choices than fixed annuities for risk tolerant investors during the withdrawal phase of the annuity.

Accepted Answer

A) True 
 B)False

Question 6

Integrating a retirement plan with Social Security benefits typically increases a retiree's retirement income.

Accepted Answer

A) True 
 B)False

Question 7

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-With a [fixed rate | variable] annuity,you would receive a guaranteed payment regardless of the investment activity of the investment 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 8

At the same time as employers are cutting back on traditional pension plans,more are offering defined benefit plans.

Accepted Answer

A) True 
 B)False

Question 9

Self directed retirement accounts such as Keogh and SEP accounts can be set up at

Accepted Answer

A)  banks. 
B)  brokerage houses. 
C)  insurance companies. 
D)  mutual fund companies. 
E)  All of the above 
A)  banks. 
B)  brokerage houses. 
C)  insurance companies. 
D)  mutual fund companies. 
E)  All of the above

Question 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A Roth IRA will be funded with [pre | post] tax dollars.

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 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A straight life annuity payment option will result in the [highest | lowest] possible monthly payments to the annuitant.

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 12

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Harry starts taking reduced retirement benefits at age 62.Those benefits [will | will not] be increased when he reaches normal retirement age.

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 13

Annuity proceeds are limited to the life of one person.

Accepted Answer

A) True 
 B)False

Question 14

Roth IRAs are the only IRAs that have the potential to produce tax-free earnings.

Accepted Answer

A) True 
 B)False

Question 15

What are the tax characteristics of qualified retirement plans?

Accepted Answer

A)  Employers can deduct the contributions. 
B)  Employees do not pay taxes on the employer contributions until funds are withdrawn. 
C)  Employee contributions may or may not reduce taxable income in the year made. 
D)  Earnings on both employee and employer contributions are tax-deferred. 
E)  All of the above are characteristics. 
A)  Employers can deduct the contributions. 
B)  Employees do not pay taxes on the employer contributions until funds are withdrawn. 
C)  Employee contributions may or may not reduce taxable income in the year made. 
D)  Earnings on both employee and employer contributions are tax-deferred. 
E)  All of the above are characteristics.

Question 16

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The employee is subject to the investment risk in a defined [contribution | benefit] plan.

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 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Vested rights are [forfeitable | non-forfeitable] rights to receive some pension benefits.

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 18

The current trend in retirement plans is towards contributory plans.

Accepted Answer

A) True 
 B)False

Question 19

Your social security withholdings are placed in an account with your name on it.

Accepted Answer

A) True 
 B)False

Question 20

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The social security administration [can | cannot] give you a fairly accurate estimate of benefits you can expect in the future.

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.

Attractive features of a 401(k)plan can include

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -In general,the tax law changes made in 2001 [increased | decreased] the tax advantages for retirement accounts.

Tax-free earnings can be gotten from investments in

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Most people today must have worked in a job covered by social security for the equivalent of at least [4 years | 10 years] to be fully insured and therefore eligible for retirement benefit payments.

Variable annuities are usually better choices than fixed annuities for risk tolerant investors during the withdrawal phase of the annuity.

Integrating a retirement plan with Social Security benefits typically increases a retiree's retirement income.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -With a [fixed rate | variable] annuity,you would receive a guaranteed payment regardless of the investment activity of the investment funds.

At the same time as employers are cutting back on traditional pension plans,more are offering defined benefit plans.

Self directed retirement accounts such as Keogh and SEP accounts can be set up at

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A Roth IRA will be funded with [pre | post] tax dollars.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A straight life annuity payment option will result in the [highest | lowest] possible monthly payments to the annuitant.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Harry starts taking reduced retirement benefits at age 62.Those benefits [will | will not] be increased when he reaches normal retirement age.

Annuity proceeds are limited to the life of one person.

Roth IRAs are the only IRAs that have the potential to produce tax-free earnings.

What are the tax characteristics of qualified retirement plans?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The employee is subject to the investment risk in a defined [contribution | benefit] plan.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Vested rights are [forfeitable | non-forfeitable] rights to receive some pension benefits.

The current trend in retirement plans is towards contributory plans.

Your social security withholdings are placed in an account with your name on it.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The social security administration [can | cannot] give you a fairly accurate estimate of benefits you can expect in the future.

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

Attractive features of a 401(k)plan can include

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -In general,the tax law changes made in 2001 [increased | decreased] the tax advantages for retirement accounts.

Tax-free earnings can be gotten from investments in

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Most people today must have worked in a job covered by social security for the equivalent of at least [4 years | 10 years] to be fully insured and therefore eligible for retirement benefit payments.

Variable annuities are usually better choices than fixed annuities for risk tolerant investors during the withdrawal phase of the annuity.

Integrating a retirement plan with Social Security benefits typically increases a retiree's retirement income.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -With a [fixed rate | variable] annuity,you would receive a guaranteed payment regardless of the investment activity of the investment funds.

At the same time as employers are cutting back on traditional pension plans,more are offering defined benefit plans.

Self directed retirement accounts such as Keogh and SEP accounts can be set up at

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A Roth IRA will be funded with [pre | post] tax dollars.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A straight life annuity payment option will result in the [highest | lowest] possible monthly payments to the annuitant.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Harry starts taking reduced retirement benefits at age 62.Those benefits [will | will not] be increased when he reaches normal retirement age.

Annuity proceeds are limited to the life of one person.

Roth IRAs are the only IRAs that have the potential to produce tax-free earnings.

What are the tax characteristics of qualified retirement plans?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The employee is subject to the investment risk in a defined [contribution | benefit] plan.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Vested rights are [forfeitable | non-forfeitable] rights to receive some pension benefits.

The current trend in retirement plans is towards contributory plans.

Your social security withholdings are placed in an account with your name on it.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The social security administration [can | cannot] give you a fairly accurate estimate of benefits you can expect in the future.

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