Question 1

A retiree's principal source of retirement income is Social Security.

Accepted Answer

A) True 
 B)False

Question 2

Social Security provides the average retired wage earner (who is married)with _________ percent of the wages he or she was earning in the year before retirement.

Accepted Answer

A) 20 to 40 
B) 30 to 50 
C) 40 to 60 
D) 60 to 80 
E) 100 
A) 20 to 40 
B) 30 to 50 
C) 40 to 60 
D) 60 to 80 
E) 100

Question 3

Annuity premiums are paid to the company during the distribution period.

Accepted Answer

A) True 
 B)False

Question 4

Fully insured status for Social Security requires ____ quarters of coverage.

Accepted Answer

A) 6 
B) 10 
C) 25 
D) 40 
E) 50 
A) 6 
B) 10 
C) 25 
D) 40 
E) 50

Question 5

The size of your retirement nest egg will depend on

Accepted Answer

A) when you start your program. 
B) how much you contribute each year. 
C) the rate of return you earn on your investments. 
D) all of these. 
E) none of these. 
A) when you start your program. 
B) how much you contribute each year. 
C) the rate of return you earn on your investments. 
D) all of these. 
E) none of these.

Question 6

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.
-Jake wants to convert part of his retirement savings into income now.He should purchase a [deferred | immediate] annuity.

Accepted Answer

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

Question 7

Major sources of retirement income include

Accepted Answer

A) Social Security. 
B) government transfers. 
C) earnings. 
D) pensions and retirement savings. 
E) all of these. 
A) Social Security. 
B) government transfers. 
C) earnings. 
D) pensions and retirement savings. 
E) all of these.

Question 8

Like Keogh plans,SEP plans are only for self-employed persons with no employees.

Accepted Answer

A) True 
 B)False

Question 9

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.
-[Earned income | 401k's] has accounted for a growing amount of total retirement income.

Accepted Answer

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

Question 10

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.
-Beginning to put aside retirement funds at age 35 instead of 45 will make [very little | a great] difference in your total accumulated funds.

Accepted Answer

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

Question 11

Jamie has worked for ABC Printing for 5 years.During this period ABC Printing has contributed $25,000 to her non-contributory retirement plan.Assuming ABC uses cliff vesting,the longest period allowed,how much will Jamie be able to roll into an IRA if she left ABC Printing?

Accepted Answer

A) $ 0 
B) $ 5,000 
C) $10,000 
D) $20,000 
E) $25,000 
A) $ 0 
B) $ 5,000 
C) $10,000 
D) $20,000 
E) $25,000

Question 12

If an annuity plan is designed so that the monthly payment is adjusted by the actual investment experience of the insurer,it is

Accepted Answer

A) a fixed dollar annuity. 
B) an equity annuity. 
C) a variable annuity. 
D) an uncertain annuity. 
E) a temporary annuity. 
A) a fixed dollar annuity. 
B) an equity annuity. 
C) a variable annuity. 
D) an uncertain annuity. 
E) a temporary annuity.

Question 13

An IRA is a type of an investment.

Accepted Answer

A) True 
 B)False

Question 14

There is no penalty for early withdrawal of an annuity.

Accepted Answer

A) True 
 B)False

Question 15

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

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.
-A cash-balance [does | does not] guarantee a minimum rate of return.

Accepted Answer

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

Question 17

Self-employed workers pay twice as much for Social Security coverage compared to employed workers.

Accepted Answer

A) True 
 B)False

Question 18

The cash-balance retirement plan is being used to replace traditional defined benefit plans.

Accepted Answer

A) True 
 B)False

Question 19

Reduced early retirement benefits can be received at age 62.

Accepted Answer

A) True 
 B)False

Question 20

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.
-Most people today must have worked in a job covered by Social Security for the equivalent of at least [8 years | 10 years] to be fully insured and therefore eligible for retirement benefit payments.

Accepted Answer

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

A retiree's principal source of retirement income is Social Security.

Social Security provides the average retired wage earner (who is married)with _________ percent of the wages he or she was earning in the year before retirement.

Annuity premiums are paid to the company during the distribution period.

Fully insured status for Social Security requires ____ quarters of coverage.

The size of your retirement nest egg will depend on

Major sources of retirement income include

Like Keogh plans,SEP plans are only for self-employed persons with no employees.

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. -[Earned income | 401k's] has accounted for a growing amount of total retirement income.

Jamie has worked for ABC Printing for 5 years.During this period ABC Printing has contributed $25,000 to her non-contributory retirement plan.Assuming ABC uses cliff vesting,the longest period allowed,how much will Jamie be able to roll into an IRA if she left ABC Printing?

If an annuity plan is designed so that the monthly payment is adjusted by the actual investment experience of the insurer,it is

An IRA is a type of an investment.

There is no penalty for early withdrawal of an annuity.

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

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. -A cash-balance [does | does not] guarantee a minimum rate of return.

Self-employed workers pay twice as much for Social Security coverage compared to employed workers.

The cash-balance retirement plan is being used to replace traditional defined benefit plans.

Reduced early retirement benefits can be received at age 62.

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 retiree's principal source of retirement income is Social Security.

Social Security provides the average retired wage earner (who is married)with _________ percent of the wages he or she was earning in the year before retirement.

Annuity premiums are paid to the company during the distribution period.

Fully insured status for Social Security requires ____ quarters of coverage.

The size of your retirement nest egg will depend on

Major sources of retirement income include

Like Keogh plans,SEP plans are only for self-employed persons with no employees.

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. -[Earned income | 401k's] has accounted for a growing amount of total retirement income.

Jamie has worked for ABC Printing for 5 years.During this period ABC Printing has contributed $25,000 to her non-contributory retirement plan.Assuming ABC uses cliff vesting,the longest period allowed,how much will Jamie be able to roll into an IRA if she left ABC Printing?

If an annuity plan is designed so that the monthly payment is adjusted by the actual investment experience of the insurer,it is

An IRA is a type of an investment.

There is no penalty for early withdrawal of an annuity.

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

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. -A cash-balance [does | does not] guarantee a minimum rate of return.

Self-employed workers pay twice as much for Social Security coverage compared to employed workers.

The cash-balance retirement plan is being used to replace traditional defined benefit plans.

Reduced early retirement benefits can be received at age 62.

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