Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Gordon and Lisa estimate that they will need approximately $1,300,000 in 40 years for their retirement years.If they can earn 8 percent annually on their funds,how much do they need to save annually?

Accepted Answer

A) $2,000 
B) $3,000 
C) $4,000 
D) $5,000 
E) $10,000 
A) $2,000 
B) $3,000 
C) $4,000 
D) $5,000 
E) $10,000

Question 3

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 4

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 5

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Inflation will have [little | great] impact on your retirement plans.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 6

Danielle puts 8 percent of her paycheck in a 401(k)plan administered by her employer.Danielle earns $55,000 per year and is in the 28 percent tax category.What annual tax savings does she get from her contribution? If her employer matches contributions on the first 5% of her salary dollar for dollar and the second 5% 50 cents on the dollar,how much will her employer put into her account this year? (Show all work.)

Accepted Answer

Contribution = .08 × $55,000 =

Question 7

About 40% of all full-time workers are covered by company-financed retirement plans.

Accepted Answer

A) True 
 B)False

Question 8

The need for retirement planning is increased by the uncertainties of

Accepted Answer

A) inflation. 
B) social security benefits. 
C) the assets you hold. 
D) your pension benefits. 
E) all of these. 
A) inflation. 
B) social security benefits. 
C) the assets you hold. 
D) your pension benefits. 
E) all of these.

Question 9

A graded vesting schedule would legally have to give you some vesting rights if you worked at a company for two or more years.

Accepted Answer

A) True 
 B)False

Question 10

The current trend in retirement plans is toward contributory plans.

Accepted Answer

A) True 
 B)False

Question 11

One can maximize the monthly Social Security benefit amount by delaying taking retirement benefits until age

Accepted Answer

A) 62. 
B) 65. 
C) 67. 
D) 70. 
E) 75. 
A) 62. 
B) 65. 
C) 67. 
D) 70. 
E) 75.

Question 12

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-With an IRA,the [account owner | institution] is the trustee.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 13

Major sources of retirement income include all of the following except

Accepted Answer

A) life insurance. 
B) earnings. 
C) assets. 
D) pensions and retirement savings. 
E) Social Security. 
A) life insurance. 
B) earnings. 
C) assets. 
D) pensions and retirement savings. 
E) Social Security.

Question 14

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Social Security alone [will | will not] provide a comfortable standard of living at retirement.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 15

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 16

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-There is a growing trend for companies to implement [defined benefit plans | defined contribution plans].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 19

At age 25,Julie invests $2,000 at an average rate of return of 6 percent.Approximately how much will Julie have by the time she is 65?

Accepted Answer

A) $10,000 
B) $100,000 
C) $250,000 
D) $309,000 
E) $486,000 
A) $10,000 
B) $100,000 
C) $250,000 
D) $309,000 
E) $486,000

Question 20

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

Accepted Answer

A) True 
 B)False

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

Gordon and Lisa estimate that they will need approximately $1,300,000 in 40 years for their retirement years.If they can earn 8 percent annually on their funds,how much do they need to save annually?

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.

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

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Inflation will have [little | great] impact on your retirement plans.

About 40% of all full-time workers are covered by company-financed retirement plans.

The need for retirement planning is increased by the uncertainties of

A graded vesting schedule would legally have to give you some vesting rights if you worked at a company for two or more years.

The current trend in retirement plans is toward contributory plans.

One can maximize the monthly Social Security benefit amount by delaying taking retirement benefits until age

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -With an IRA,the [account owner | institution] is the trustee.

Major sources of retirement income include all of the following except

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Social Security alone [will | will not] provide a comfortable standard of living at retirement.

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

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -There is a growing trend for companies to implement [defined benefit plans | defined contribution plans].

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

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

At age 25,Julie invests $2,000 at an average rate of return of 6 percent.Approximately how much will Julie have by the time she is 65?

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

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

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

Gordon and Lisa estimate that they will need approximately $1,300,000 in 40 years for their retirement years.If they can earn 8 percent annually on their funds,how much do they need to save annually?

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.

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

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Inflation will have [little | great] impact on your retirement plans.

About 40% of all full-time workers are covered by company-financed retirement plans.

The need for retirement planning is increased by the uncertainties of

A graded vesting schedule would legally have to give you some vesting rights if you worked at a company for two or more years.

The current trend in retirement plans is toward contributory plans.

One can maximize the monthly Social Security benefit amount by delaying taking retirement benefits until age

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -With an IRA,the [account owner | institution] is the trustee.

Major sources of retirement income include all of the following except

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Social Security alone [will | will not] provide a comfortable standard of living at retirement.

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

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -There is a growing trend for companies to implement [defined benefit plans | defined contribution plans].

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

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

At age 25,Julie invests $2,000 at an average rate of return of 6 percent.Approximately how much will Julie have by the time she is 65?

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

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