Question 1

Which of the following employers would be most likely to offer a 403(b)plan?

Accepted Answer

A) General Motors 
B) Wright State University 
C) Duke Power 
D) SBC Corporation 
A) General Motors 
B) Wright State University 
C) Duke Power 
D) SBC Corporation

Question 2

Generally,there are tax penalties for ________ withdrawals from a traditional IRA.

Accepted Answer

A) both early and late 
B) only early 
C) only late 
D) all 
A) both early and late 
B) only early 
C) only late 
D) all

Question 3

To be eligible for Social Security retirement benefits on your own,you will need to have worked for at least 10 years,earned the minimum required income each year,and contributed to Social Security through payroll taxes.

Accepted Answer

A) True 
 B)False

Question 4

Both the Keogh Plan and the Simplified Employee Plan (SEP)are available to self-employed individuals for retirement savings.

Accepted Answer

A) True 
 B)False

Question 5

Starting in 2003,you will need to be 67 to qualify for full retirement benefits.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is not true of annuities?

Accepted Answer

A) They can provide annual payments for life 
B) They provide no tax advantages 
C) They have high fees 
D) You can withdraw your investment as a lump sum 
A) They can provide annual payments for life 
B) They provide no tax advantages 
C) They have high fees 
D) You can withdraw your investment as a lump sum

Question 7

When you leave an employer,your options with your 401(k)are all of the following except

Accepted Answer

A) leave it with your former employer. 
B) transfer it to your new employer. 
C) transfer it to a rollover IRA. 
D) withdraw it with no tax penalty if done in 90 days. 
A) leave it with your former employer. 
B) transfer it to your new employer. 
C) transfer it to a rollover IRA. 
D) withdraw it with no tax penalty if done in 90 days.

Question 8

Name two types of retirement plans available to the self-employed.

Accepted Answer

Simplified

Question 9

The quality and timing of your retirement depends mainly on the quality of your employer's retirement plan.

Accepted Answer

A) True 
 B)False

Question 10

If your retirement plan has no vesting requirement then it is not a

Accepted Answer

A) defined-benefit plan. 
B) defined-contribution plan. 
C) traditional IRA. 
D) Keogh plan. 
A) defined-benefit plan. 
B) defined-contribution plan. 
C) traditional IRA. 
D) Keogh plan.

Question 11

New rules which apply to 401(k)s are

Accepted Answer

A) covered by the Tax Relief Act of 2001. 
B) that contribution limits are decreasing yearly until 2006. 
C) that individuals over age 40 are able to make additional yearly make-up contributions. 
D) contributions will no longer be pre-tax dollars. 
A) covered by the Tax Relief Act of 2001. 
B) that contribution limits are decreasing yearly until 2006. 
C) that individuals over age 40 are able to make additional yearly make-up contributions. 
D) contributions will no longer be pre-tax dollars.

Question 12

Social Security is all but

Accepted Answer

A) a good starting point to plan for your retirement funding. 
B) financed through working individuals and employers. 
C) a government benefit paid to the elderly and disabled. 
D) a specific savings plan to which individuals contribute and from which they benefit. 
A) a good starting point to plan for your retirement funding. 
B) financed through working individuals and employers. 
C) a government benefit paid to the elderly and disabled. 
D) a specific savings plan to which individuals contribute and from which they benefit.

Question 13

A financial contract that will provide annual payments over either a specified time period or a person's lifetime is a(n)________.

Accepted Answer

The answer of A financial contract that will provide annual...

Question 14

When you contribute to a defined-contribution retirement plan,your employer often puts in money too,and you are able to defer taxes on these contributions.

Accepted Answer

A) True 
 B)False

Question 15

IRA contribution limits and eligibility requirements are increasing over the next few years to encourage more retirement savings by individuals.

Accepted Answer

A) True 
 B)False

Question 16

In estimating the future value of your retirement investments,you would consider all of the following except

Accepted Answer

A) the amount invested. 
B) your annual return. 
C) the number of years you will invest. 
D) the age at which your spouse will retire. 
A) the amount invested. 
B) your annual return. 
C) the number of years you will invest. 
D) the age at which your spouse will retire.

Question 17

The amount of income that you receive from Social Security when you retire is dependent on the number of years you earned income and your average level of income.

Accepted Answer

A) True 
 B)False

Question 18

A(n)________ is a financial contract that provides annual payments until a specified year or until one's death.

Accepted Answer

A) savings account 
B) annuity 
C) mortgage 
D) trust 
A) savings account 
B) annuity 
C) mortgage 
D) trust

Question 19

When deciding whether to invest in a Traditional IRA or a Roth IRA one would consider all except

Accepted Answer

A) the amount of income you expect to make at retirement. 
B) whether you are covered by an employer-sponsored retirement plan and,if so,how much income you earn. 
C) if you want to start drawing out the money at 70-1/2 or not. 
D) whether you want the money to accumulate tax-free or not. 
A) the amount of income you expect to make at retirement. 
B) whether you are covered by an employer-sponsored retirement plan and,if so,how much income you earn. 
C) if you want to start drawing out the money at 70-1/2 or not. 
D) whether you want the money to accumulate tax-free or not.

Question 20

With which of the following plans will you be able to most accurately predict your retirement income?

Accepted Answer

A) 401(k) 
B) 403-b 
C) Traditional IRA 
D) Defined-benefit plan 
A) 401(k) 
B) 403-b 
C) Traditional IRA 
D) Defined-benefit plan

Exam 19: Retirement Planning

Which of the following employers would be most likely to offer a 403(b)plan?

Generally,there are tax penalties for ________ withdrawals from a traditional IRA.

To be eligible for Social Security retirement benefits on your own,you will need to have worked for at least 10 years,earned the minimum required income each year,and contributed to Social Security through payroll taxes.

Both the Keogh Plan and the Simplified Employee Plan (SEP)are available to self-employed individuals for retirement savings.

Starting in 2003,you will need to be 67 to qualify for full retirement benefits.

Which of the following statements is not true of annuities?

When you leave an employer,your options with your 401(k)are all of the following except

Name two types of retirement plans available to the self-employed.

The quality and timing of your retirement depends mainly on the quality of your employer's retirement plan.

If your retirement plan has no vesting requirement then it is not a

New rules which apply to 401(k)s are

Social Security is all but

A financial contract that will provide annual payments over either a specified time period or a person's lifetime is a(n)________.

When you contribute to a defined-contribution retirement plan,your employer often puts in money too,and you are able to defer taxes on these contributions.

IRA contribution limits and eligibility requirements are increasing over the next few years to encourage more retirement savings by individuals.

In estimating the future value of your retirement investments,you would consider all of the following except

The amount of income that you receive from Social Security when you retire is dependent on the number of years you earned income and your average level of income.

A(n)________ is a financial contract that provides annual payments until a specified year or until one's death.

When deciding whether to invest in a Traditional IRA or a Roth IRA one would consider all except

With which of the following plans will you be able to most accurately predict your retirement income?

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Estate Planning

Integrating the Components of a Financial Plan

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