Question 1

Self-directed retirement accounts such as Keogh and SEP accounts can be set up at

Accepted Answer

A) banks. 
B) brokerage houses. 
C) insurance companies. 
D) mutual fund companies. 
E) all of these. 
A) banks. 
B) brokerage houses. 
C) insurance companies. 
D) mutual fund companies. 
E) all of these.

Question 2

When setting retirement goals,you should consider

Accepted Answer

A) what you want to do in retirement. 
B) your expected standard of living. 
C) your proposed level of income. 
D) special retirement activities and projects. 
E) all of these. 
A) what you want to do in retirement. 
B) your expected standard of living. 
C) your proposed level of income. 
D) special retirement activities and projects. 
E) all of these.

Question 3

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.
-If Melissa converts her traditional IRA to a Roth IRA,she [will | will not] have to pay taxes on any earnings and pretax contributions.

Accepted Answer

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

Question 4

Profit-sharing plans allow flexible employer contributions to the plan.

Accepted Answer

A) True 
 B)False

Question 5

Social Security taxes are not limited by the amount of wages earned.

Accepted Answer

A) True 
 B)False

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.
-With a life annuity,period certain,a payment will be made for a stated period of time [only to the annuitant if she lives | to someone else if the annuitant dies].

Accepted Answer

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

Question 7

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 8

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.
-In a Roth 401(k),contributions [are | are not] tax deductible.

Accepted Answer

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

Question 9

Of the following survivors of a fully insured worker,____ would not be eligible for Social Security benefits.

Accepted Answer

A) dependent children 
B) spouse age 47, no children 
C) spouse age 65, with dependent children 
D) spouse age 65, no children 
E) spouse age 26, with dependent children 
A) dependent children 
B) spouse age 47, no children 
C) spouse age 65, with dependent children 
D) spouse age 65, no children 
E) spouse age 26, with dependent children

Question 10

For anyone born in 1960 or later,the full retirement age is 65.

Accepted Answer

A) True 
 B)False

Question 11

If you make a withdrawal from an IRA account before age 57 1/2,you generally owe a 20% penalty on that amount.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a common mistake people make when planning for retirement?

Accepted Answer

A) Starting too late 
B) Putting away too little 
C) Assuming too much risk 
D) Having too little when reaching retirement 
E) None of these 
A) Starting too late 
B) Putting away too little 
C) Assuming too much risk 
D) Having too little when reaching retirement 
E) None of these

Question 13

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.
-Money to make Social Security benefit payments comes from contributions from [employees only | employers only].

Accepted Answer

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

Question 14

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 15

The proceeds of a variable annuity are dependent on the

Accepted Answer

A) cost of living. 
B) Consumer Price Index. 
C) investment return. 
D) tax rate. 
E) actual investment. 
A) cost of living. 
B) Consumer Price Index. 
C) investment return. 
D) tax rate. 
E) actual investment.

Question 16

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 these. 
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 these.

Question 17

The amount of money in your defined contribution retirement portfolio will depend on

Accepted Answer

A) the age at which you begin contributing. 
B) the amount of money you deposit each month. 
C) the rate of return on your savings. 
D) all of these. 
E) none of these really make much difference. 
A) the age at which you begin contributing. 
B) the amount of money you deposit each month. 
C) the rate of return on your savings. 
D) all of these. 
E) none of these really make much difference.

Question 18

____ do not have to be covered by Social Security coverage.

Accepted Answer

A) Farmers and ministers 
B) Federal civilian employees hired before 1984 and employees of state and local governments 
C) Federal employees and ministers 
D) Teachers and employees of universities 
E) Ministers and professional athletes 
A) Farmers and ministers 
B) Federal civilian employees hired before 1984 and employees of state and local governments 
C) Federal employees and ministers 
D) Teachers and employees of universities 
E) Ministers and professional athletes

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A single premium annuity must be purchased with a lump-sum payment.

Accepted Answer

A) True 
 B)False

Self-directed retirement accounts such as Keogh and SEP accounts can be set up at

When setting retirement goals,you should consider

Profit-sharing plans allow flexible employer contributions to the plan.

Social Security taxes are not limited by the amount of wages earned.

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

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. -In a Roth 401(k),contributions [are | are not] tax deductible.

Of the following survivors of a fully insured worker,____ would not be eligible for Social Security benefits.

For anyone born in 1960 or later,the full retirement age is 65.

If you make a withdrawal from an IRA account before age 57 1/2,you generally owe a 20% penalty on that amount.

Which of the following is not a common mistake people make when planning for retirement?

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

The proceeds of a variable annuity are dependent on the

The cost of an annuity varies with the

The amount of money in your defined contribution retirement portfolio will depend on

____ do not have to be covered by Social Security coverage.

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

A single premium annuity must be purchased with a lump-sum payment.

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

Self-directed retirement accounts such as Keogh and SEP accounts can be set up at

When setting retirement goals,you should consider

Profit-sharing plans allow flexible employer contributions to the plan.

Social Security taxes are not limited by the amount of wages earned.

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

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. -In a Roth 401(k),contributions [are | are not] tax deductible.

Of the following survivors of a fully insured worker,____ would not be eligible for Social Security benefits.

For anyone born in 1960 or later,the full retirement age is 65.

If you make a withdrawal from an IRA account before age 57 1/2,you generally owe a 20% penalty on that amount.

Which of the following is not a common mistake people make when planning for retirement?

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

The proceeds of a variable annuity are dependent on the

The cost of an annuity varies with the

The amount of money in your defined contribution retirement portfolio will depend on

____ do not have to be covered by Social Security coverage.

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

A single premium annuity must be purchased with a lump-sum payment.

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