Question 1

It is legal for employers to reduce an employee's pension as a result of receiving Social Security benefits.

Accepted Answer

A) True 
 B)False

Question 2

Starting later in life and being too conservative when investing are both common retirement planning mistakes.

Accepted Answer

A) True 
 B)False

Question 3

A person who is self-employed on a part-time basis can qualify for a Keogh account.

Accepted Answer

A) True 
 B)False

Question 4

The median household approaching retirement has less than ___ percent of the money needed to maintain their standard of living in retirement.

Accepted Answer

A)  10 
B)  25 
C)  50 
D)  80 
E)  most have sufficient income 
A)  10 
B)  25 
C)  50 
D)  80 
E)  most have sufficient income

Question 5

Anyone with earned income can contribute to some type of IRA.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)  20 
B)  40 
C)  60 
D)  80 
E)  90 
A)  20 
B)  40 
C)  60 
D)  80 
E)  90

Question 7

You would most likely purchase an annuity from an insurance company.

Accepted Answer

A) True 
 B)False

Question 8

Social security is meant to be a retirement income supplement.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following has accounted for a growing amount of total retirement income?

Accepted Answer

A)  Social security 
B)  401k 
C)  personal savings 
D)  earned income 
E)  real estate investing 
A)  Social security 
B)  401k 
C)  personal savings 
D)  earned income 
E)  real estate investing

Question 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The Pension Benefit Guarantee Corporation (PBGC)protects employees pensions from [inflation | bankruptcy].

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

An example of a type of plan where the amount the employee receives at retirement is dependent on investment return is a

Accepted Answer

A)  defined contribution plan. 
B)  defined benefit plan. 
C)  cash balance plan. 
D)  a and b 
E)  a,b,and c 
A)  defined contribution plan. 
B)  defined benefit plan. 
C)  cash balance plan. 
D)  a and b 
E)  a,b,and c

Question 12

The first step in retirement planning is to identify retirement goals.

Accepted Answer

A) True 
 B)False

Question 13

A vested employee has a right to receive benefits from an employer's retirement funds even if he no longer works there.

Accepted Answer

A) True 
 B)False

Question 14

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The employee will be responsible for making investment choices when the employer offers a [401(k)plan | defined 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 15

The major financial benefit of beginning your retirement funding early is related to

Accepted Answer

A)  increased cost of living. 
B)  compound interest. 
C)  reduced anxiety. 
D)  inflation. 
E)  investment returns. 
A)  increased cost of living. 
B)  compound interest. 
C)  reduced anxiety. 
D)  inflation. 
E)  investment returns.

Question 16

IRA withdrawals can be made without tax penalty any time after you reach the age of 59 1/2.

Accepted Answer

A) True 
 B)False

Question 17

With a graduated vesting schedule over five years,Marianne is likely to keep ____ of her employer's contribution if she leaves her company after four years.

Accepted Answer

A)  10% 
B)  20% 
C)  40% 
D)  60% 
E)  80% 
A)  10% 
B)  20% 
C)  40% 
D)  60% 
E)  80%

Question 18

Henry has a defined benefit plan that promises an annual retirement benefit based on the average of his last five years of salary times 2.5 times years of service.At retirement Henry has 21 years of service and an average salary over the last 5 years of $95,000.What will his annual benefit be?

Accepted Answer

A)  $95,000 
B)  $60,500 
C)  $49,875 
D)  $28,500 
E)  cannot determine 
A)  $95,000 
B)  $60,500 
C)  $49,875 
D)  $28,500 
E)  cannot determine

Question 19

Annuities may provide survivor's benefits.

Accepted Answer

A) True 
 B)False

Question 20

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The period during which annuity payments are made to the individual is called the [distribution | survivorship] period.

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.

It is legal for employers to reduce an employee's pension as a result of receiving Social Security benefits.

Starting later in life and being too conservative when investing are both common retirement planning mistakes.

A person who is self-employed on a part-time basis can qualify for a Keogh account.

The median household approaching retirement has less than ___ percent of the money needed to maintain their standard of living in retirement.

Anyone with earned income can contribute to some type of IRA.

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

You would most likely purchase an annuity from an insurance company.

Social security is meant to be a retirement income supplement.

Which of the following has accounted for a growing amount of total retirement income?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The Pension Benefit Guarantee Corporation (PBGC)protects employees pensions from [inflation | bankruptcy].

An example of a type of plan where the amount the employee receives at retirement is dependent on investment return is a

The first step in retirement planning is to identify retirement goals.

A vested employee has a right to receive benefits from an employer's retirement funds even if he no longer works there.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The employee will be responsible for making investment choices when the employer offers a [401(k)plan | defined benefit plan].

The major financial benefit of beginning your retirement funding early is related to

IRA withdrawals can be made without tax penalty any time after you reach the age of 59 1/2.

With a graduated vesting schedule over five years,Marianne is likely to keep ____ of her employer's contribution if she leaves her company after four years.

Henry has a defined benefit plan that promises an annual retirement benefit based on the average of his last five years of salary times 2.5 times years of service.At retirement Henry has 21 years of service and an average salary over the last 5 years of $95,000.What will his annual benefit be?

Annuities may provide survivor's benefits.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The period during which annuity payments are made to the individual is called the [distribution | survivorship] period.

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

It is legal for employers to reduce an employee's pension as a result of receiving Social Security benefits.

Starting later in life and being too conservative when investing are both common retirement planning mistakes.

A person who is self-employed on a part-time basis can qualify for a Keogh account.

The median household approaching retirement has less than ___ percent of the money needed to maintain their standard of living in retirement.

Anyone with earned income can contribute to some type of IRA.

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

You would most likely purchase an annuity from an insurance company.

Social security is meant to be a retirement income supplement.

Which of the following has accounted for a growing amount of total retirement income?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The Pension Benefit Guarantee Corporation (PBGC)protects employees pensions from [inflation | bankruptcy].

An example of a type of plan where the amount the employee receives at retirement is dependent on investment return is a

The first step in retirement planning is to identify retirement goals.

A vested employee has a right to receive benefits from an employer's retirement funds even if he no longer works there.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The employee will be responsible for making investment choices when the employer offers a [401(k)plan | defined benefit plan].

The major financial benefit of beginning your retirement funding early is related to

IRA withdrawals can be made without tax penalty any time after you reach the age of 59 1/2.

With a graduated vesting schedule over five years,Marianne is likely to keep ____ of her employer's contribution if she leaves her company after four years.

Henry has a defined benefit plan that promises an annual retirement benefit based on the average of his last five years of salary times 2.5 times years of service.At retirement Henry has 21 years of service and an average salary over the last 5 years of $95,000.What will his annual benefit be?

Annuities may provide survivor's benefits.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The period during which annuity payments are made to the individual is called the [distribution | survivorship] period.

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