Question 1

Funds to finance social security come from

Accepted Answer

A)  voluntary contributions from employee,employer,and self-employed. 
B)  compulsory contributions from employee,employer,and self-employed. 
C)  state and federal income tax. 
D)  compulsory contributions from government,employee,and employer. 
E)  Congressional appropriations. 
A)  voluntary contributions from employee,employer,and self-employed. 
B)  compulsory contributions from employee,employer,and self-employed. 
C)  state and federal income tax. 
D)  compulsory contributions from government,employee,and employer. 
E)  Congressional appropriations.

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-You have just begun working at ABC Corporation.Participation in the company's 401(k)plan will probably be [voluntary | mandatory].

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

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-[401(k)| 403(b)] plans would be available for employees of a public,non-profit organization.

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 4

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-There is a [5% | 10%] federal income tax penalty for pension plan withdrawals before age 59.

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

Profit sharing plans allow flexible employer contributions to the plan.

Accepted Answer

A) True 
 B)False

Question 6

The cost of an annuity varies with the

Accepted Answer

A)  age of the annuitant at issue. 
B)  age of the annuitant when payment begins. 
C)  method of proceeds distribution. 
D)  sex of the annuitant. 
E)  all of the above. 
A)  age of the annuitant at issue. 
B)  age of the annuitant when payment begins. 
C)  method of proceeds distribution. 
D)  sex of the annuitant. 
E)  all of the above.

Question 7

Persons 50 and over are able to make larger contributions to IRAs than younger persons.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following types of retirement plans is becoming less common?

Accepted Answer

A)  traditional defined contribution 
B)  traditional defined benefit 
C)  cash balance 
D)  401(k) 
E)  Keogh 
A)  traditional defined contribution 
B)  traditional defined benefit 
C)  cash balance 
D)  401(k) 
E)  Keogh

Question 9

The first step in retirement planning is to

Accepted Answer

A)  determine how large a nest egg is required. 
B)  consider your longevity. 
C)  define your investment program. 
D)  determine your income-earning assets. 
E)  set retirement goals 
A)  determine how large a nest egg is required. 
B)  consider your longevity. 
C)  define your investment program. 
D)  determine your income-earning assets. 
E)  set retirement goals

Question 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Lois,age 67,is receiving social security benefits.She received $25,000 in interest and dividends this year.Her social security benefits [will | will not] be reduced because of these earnings.

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

If you are gradually vested in a retirement plan over a 4-year period,the plan is a

Accepted Answer

A)  cliff plan. 
B)  contributory plan. 
C)  self-directed plan. 
D)  graded plan. 
E)  maximum vesting plan. 
A)  cliff plan. 
B)  contributory plan. 
C)  self-directed plan. 
D)  graded plan. 
E)  maximum vesting plan.

Question 12

A major advantage of an annuity is that you cannot outlive your financial resources.

Accepted Answer

A) True 
 B)False

Question 13

Jacque Solis (age 38)is leaving her current job and would like to take a long vacation before starting new employment.She has $58,000 in a qualified plan that she would like to live on during this period.If she is in a 25 percent marginal tax bracket,how much will she have left after paying taxes and penalties?

Accepted Answer

A)  $58,000 
B)  $43,500 
C)  $37,700 
D)  $29,000 
E)  $14,500 
A)  $58,000 
B)  $43,500 
C)  $37,700 
D)  $29,000 
E)  $14,500

Question 14

Mandy and Michael Tombs are retiring soon.Their projected month Social Security benefits are $800 and $1,800,respectively.Assuming they are married and they select the best benefit alternative for them,how much will they receive monthly?

Accepted Answer

A)  $ 800 
B)  $1,200 
C)  $1,800 
D)  $2,600 
E)  $2,700 
A)  $ 800 
B)  $1,200 
C)  $1,800 
D)  $2,600 
E)  $2,700

Question 15

Marshall has calculated that he will need $1,250,000 in his retirement fund in 40 years when he plans to retire.If Marshall can earn 8% annually over this period,how much does Marshall need to save annually to meet that goal?

Accepted Answer

The answer of Marshall has calculated that he will need...

Question 16

One often has to make investment decision if you have a ____ plan.

Accepted Answer

A)  Cash balance 
B)  Defined benefit 
C)  401(k) 
D)  a and b 
E)  a and c 
A)  Cash balance 
B)  Defined benefit 
C)  401(k) 
D)  a and b 
E)  a and c

Question 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-[Social Security | 401k] is the single largest source of income for the average U.S.retiree.

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 money you put into a Roth IRA is deductible from your taxable income in the year contributed.

Accepted Answer

A) True 
 B)False

Question 19

Self directed retirement accounts aimed at self-employed persons include

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 20

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A defined [contribution | benefit] retirement plan would usually be better for a younger worker who changes employers every five years.

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.

Funds to finance social security come from

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You have just begun working at ABC Corporation.Participation in the company's 401(k)plan will probably be [voluntary | mandatory].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[401(k)| 403(b)] plans would be available for employees of a public,non-profit organization.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -There is a [5% | 10%] federal income tax penalty for pension plan withdrawals before age 59.

Profit sharing plans allow flexible employer contributions to the plan.

The cost of an annuity varies with the

Persons 50 and over are able to make larger contributions to IRAs than younger persons.

Which of the following types of retirement plans is becoming less common?

The first step in retirement planning is to

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Lois,age 67,is receiving social security benefits.She received $25,000 in interest and dividends this year.Her social security benefits [will | will not] be reduced because of these earnings.

If you are gradually vested in a retirement plan over a 4-year period,the plan is a

A major advantage of an annuity is that you cannot outlive your financial resources.

Mandy and Michael Tombs are retiring soon.Their projected month Social Security benefits are $800 and $1,800,respectively.Assuming they are married and they select the best benefit alternative for them,how much will they receive monthly?

Marshall has calculated that he will need $1,250,000 in his retirement fund in 40 years when he plans to retire.If Marshall can earn 8% annually over this period,how much does Marshall need to save annually to meet that goal?

One often has to make investment decision if you have a ____ plan.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Social Security | 401k] is the single largest source of income for the average U.S.retiree.

The money you put into a Roth IRA is deductible from your taxable income in the year contributed.

Self directed retirement accounts aimed at self-employed persons include

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A defined [contribution | benefit] retirement plan would usually be better for a younger worker who changes employers every five years.

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

Funds to finance social security come from

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You have just begun working at ABC Corporation.Participation in the company's 401(k)plan will probably be [voluntary | mandatory].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[401(k)| 403(b)] plans would be available for employees of a public,non-profit organization.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -There is a [5% | 10%] federal income tax penalty for pension plan withdrawals before age 59.

Profit sharing plans allow flexible employer contributions to the plan.

The cost of an annuity varies with the

Persons 50 and over are able to make larger contributions to IRAs than younger persons.

Which of the following types of retirement plans is becoming less common?

The first step in retirement planning is to

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Lois,age 67,is receiving social security benefits.She received $25,000 in interest and dividends this year.Her social security benefits [will | will not] be reduced because of these earnings.

If you are gradually vested in a retirement plan over a 4-year period,the plan is a

A major advantage of an annuity is that you cannot outlive your financial resources.

Mandy and Michael Tombs are retiring soon.Their projected month Social Security benefits are $800 and $1,800,respectively.Assuming they are married and they select the best benefit alternative for them,how much will they receive monthly?

Marshall has calculated that he will need $1,250,000 in his retirement fund in 40 years when he plans to retire.If Marshall can earn 8% annually over this period,how much does Marshall need to save annually to meet that goal?

One often has to make investment decision if you have a ____ plan.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Social Security | 401k] is the single largest source of income for the average U.S.retiree.

The money you put into a Roth IRA is deductible from your taxable income in the year contributed.

Self directed retirement accounts aimed at self-employed persons include

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A defined [contribution | benefit] retirement plan would usually be better for a younger worker who changes employers every five years.

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