Question 1

In long-term retirement planning,you decide on the required level of retirement income and funds needed over a 3 to 5 year series of intervals.

Accepted Answer

A) True 
 B)False

Question 2

As Social Security covers more employees,employer-provided pensions and individual retirement plans are covering fewer.

Accepted Answer

A) True 
 B)False

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.
-You are age 45 and healthy,and you are withdrawing money from your IRA.There [will | will not] be a tax penalty for doing this.

Accepted Answer

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

Question 4

Attractive features of a 401(k)plan can include

Accepted Answer

A) guaranteed investment return and tax deferral. 
B) tax deferral and liquidity. 
C) liquidity and matching contributions. 
D) matching contributions and tax deferral. 
E) tax deferral and liquidity 
A) guaranteed investment return and tax deferral. 
B) tax deferral and liquidity. 
C) liquidity and matching contributions. 
D) matching contributions and tax deferral. 
E) tax deferral and liquidity

Question 5

The SEP is designed for self-employed individuals.

Accepted Answer

A) True 
 B)False

Question 6

Home Appliance Warehouse,Inc.would like to set up a retirement plan for its employees that encourages employees to save for their own retirement.The company is willing to match employee contributions.Which of the following plans would be appropriate in this situation?

Accepted Answer

A) Cash-balance plan 
B) 403(b) plan 
C) 457 plan 
D) 401(k) plan 
E) b, c, and d 
A) Cash-balance plan 
B) 403(b) plan 
C) 457 plan 
D) 401(k) plan 
E) b, c, and d

Question 7

The portion of the principal and interest of an annuity that has not been paid to the annuitant prior to death is the ____ benefit.

Accepted Answer

A) principal 
B) distribution 
C) survivorship 
D) installment 
E) accumulated 
A) principal 
B) distribution 
C) survivorship 
D) installment 
E) accumulated

Question 8

With a non-contributory pension plan,the employer makes no financial contribution to the account.

Accepted Answer

A) True 
 B)False

Question 9

Employers who want flexibility in how much they contribute to their employees' retirement plans would want to consider adopting a ____ plan.

Accepted Answer

A) qualified defined contribution 
B) cash-balance 
C) defined benefit 
D) profit-sharing 
E) 403(b) 
A) qualified defined contribution 
B) cash-balance 
C) defined benefit 
D) profit-sharing 
E) 403(b)

Question 10

The number of new retirement plans started among small businesses is growing.

Accepted Answer

A) True 
 B)False

Question 11

Will works for Micro Lance Computer Company and participates in its thrift and savings plan.For every $1.00 Will contributes to the plan,up to 5 percent of his salary,the company contributes $0.25.If Will's salary is $40,000 and he decides to maximize the matching contributions,how much will be contributed to Will's plan in a year by both the employer and Will?

Accepted Answer

A) $4,000 
B) $3,500 
C) $2,500 
D) $2,000 
E) $1,000 
A) $4,000 
B) $3,500 
C) $2,500 
D) $2,000 
E) $1,000

Question 12

One often has to make investment decisions if you have a ____ plan.

Accepted Answer

A) cash-balance 
B) defined benefit 
C) 401(k) 
D) a and b 
E) a and c 
A) cash-balance 
B) defined benefit 
C) 401(k) 
D) a and b 
E) a and c

Question 13

The first step in retirement planning is to

Accepted Answer

A) determine how large a nest egg is required. 
B) consider your longevity. 
C) define your investment program. 
D) determine your income-earning assets. 
E) set retirement goals. 
A) determine how large a nest egg is required. 
B) consider your longevity. 
C) define your investment program. 
D) determine your income-earning assets. 
E) set retirement goals.

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.
-The initial estimates of retirement expenses and income should be done in [today's | future] dollars.

Accepted Answer

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

Question 15

It is possible to convert a traditional IRA to a Roth IRA.

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.
-Under a defined benefit pension plan,an employee [is | is not] able to estimate what his pension payment would be upon retirement.

Accepted Answer

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

Question 17

It really makes little difference whether you start retirement savings at age 25 or at age 45.

Accepted Answer

A) True 
 B)False

Question 18

403(B)plans are the most common salary reduction plans.

Accepted Answer

A) True 
 B)False

Question 19

Social security benefits for retirees less than 65 years of age may be reduced if

Accepted Answer

A) wages and salaries exceed certain limits. 
B) interest income exceeds limits. 
C) dividend and rental income exceed limits. 
D) assets exceed $60,000. 
E) a spouse's income exceeds certain limits. 
A) wages and salaries exceed certain limits. 
B) interest income exceeds limits. 
C) dividend and rental income exceed limits. 
D) assets exceed $60,000. 
E) a spouse's income exceeds certain limits.

Question 20

Dr.Johnson is surgeon at University Hospital.She will pay ____ taxes on all of her $170,000 salary.

Accepted Answer

A) Social Security 
B) Medicare 
C) Medicaid 
D) a and b 
E) a, b, and c 
A) Social Security 
B) Medicare 
C) Medicaid 
D) a and b 
E) a, b, and c

In long-term retirement planning,you decide on the required level of retirement income and funds needed over a 3 to 5 year series of intervals.

As Social Security covers more employees,employer-provided pensions and individual retirement plans are covering fewer.

Attractive features of a 401(k)plan can include

The SEP is designed for self-employed individuals.

Home Appliance Warehouse,Inc.would like to set up a retirement plan for its employees that encourages employees to save for their own retirement.The company is willing to match employee contributions.Which of the following plans would be appropriate in this situation?

The portion of the principal and interest of an annuity that has not been paid to the annuitant prior to death is the ____ benefit.

With a non-contributory pension plan,the employer makes no financial contribution to the account.

Employers who want flexibility in how much they contribute to their employees' retirement plans would want to consider adopting a ____ plan.

The number of new retirement plans started among small businesses is growing.

One often has to make investment decisions if you have a ____ plan.

The first step in retirement planning is to

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. -The initial estimates of retirement expenses and income should be done in [today's | future] dollars.

It is possible to convert a traditional IRA to a Roth IRA.

It really makes little difference whether you start retirement savings at age 25 or at age 45.

403(B)plans are the most common salary reduction plans.

Social security benefits for retirees less than 65 years of age may be reduced if

Dr.Johnson is surgeon at University Hospital.She will pay ____ taxes on all of her $170,000 salary.

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

In long-term retirement planning,you decide on the required level of retirement income and funds needed over a 3 to 5 year series of intervals.

As Social Security covers more employees,employer-provided pensions and individual retirement plans are covering fewer.

Attractive features of a 401(k)plan can include

The SEP is designed for self-employed individuals.

Home Appliance Warehouse,Inc.would like to set up a retirement plan for its employees that encourages employees to save for their own retirement.The company is willing to match employee contributions.Which of the following plans would be appropriate in this situation?

The portion of the principal and interest of an annuity that has not been paid to the annuitant prior to death is the ____ benefit.

With a non-contributory pension plan,the employer makes no financial contribution to the account.

Employers who want flexibility in how much they contribute to their employees' retirement plans would want to consider adopting a ____ plan.

The number of new retirement plans started among small businesses is growing.

One often has to make investment decisions if you have a ____ plan.

The first step in retirement planning is to

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. -The initial estimates of retirement expenses and income should be done in [today's | future] dollars.

It is possible to convert a traditional IRA to a Roth IRA.

It really makes little difference whether you start retirement savings at age 25 or at age 45.

403(B)plans are the most common salary reduction plans.

Social security benefits for retirees less than 65 years of age may be reduced if

Dr.Johnson is surgeon at University Hospital.She will pay ____ taxes on all of her $170,000 salary.

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