Question 1

The two ways to buy annuities are single premium and:

Accepted Answer

A)  multi-premium. 
B)  future premium. 
C)  installment premium. 
D)  guaranteed premium. 
E)  lateral premium. 
A)  multi-premium. 
B)  future premium. 
C)  installment premium. 
D)  guaranteed premium. 
E)  lateral premium. C

Question 2

The Statement from Social Security would contain information about:

Accepted Answer

A)  year-by-year Social Security earnings credits. 
B)  benefits,if you retire at age 62. 
C)  benefits,if you retire at age 65 to 67. 
D)  benefits,if you retire at age 70. 
E)  all of these 
A)  year-by-year Social Security earnings credits. 
B)  benefits,if you retire at age 62. 
C)  benefits,if you retire at age 65 to 67. 
D)  benefits,if you retire at age 70. 
E)  all of these E

Question 3

Which of the following has accounted for a growing amount of total retirement income?

Accepted Answer

A)  Social Security 
B)  401k 
C)  Personal savings 
D)  Earned income 
E)  Real estate investing 
A)  Social Security 
B)  401k 
C)  Personal savings 
D)  Earned income 
E)  Real estate investing D

Question 4

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.
-It usually makes less sense to convert a traditional IRA to a Roth IRA the [younger |older] you are.

Accepted Answer

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

Question 5

Major sources of retirement income include all of the following except:

Accepted Answer

A)  life insurance. 
B)  annuities. 
C)  individual savings plans. 
D)  employer retirement and pension plans. 
E)  Social Security. 
A)  life insurance. 
B)  annuities. 
C)  individual savings plans. 
D)  employer retirement and pension plans. 
E)  Social Security.

Question 6

More than 50 percent of all wage earners and salaried workers today are covered by some type of employer-sponsored retirement or profit-sharing plan.

Accepted Answer

A) True 
 B)False

Question 7

When estimating retirement needs,you use the before-retirement investment return rate to adjust the current dollar shortfall to the actual shortfall at retirement.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

A $3,000 annual contribution to a retirement account earning 6% will be worth approximately _____ in 20 years.

Accepted Answer

A)  $ 60,000 
B)  $ 96,780 
C)  $100,000 
D)  $110,360 
E)  $192,600 
A)  $ 60,000 
B)  $ 96,780 
C)  $100,000 
D)  $110,360 
E)  $192,600

Question 10

The major financial benefit of beginning your retirement funding early is related to:

Accepted Answer

A)  increased cost of living. 
B)  compound interest. 
C)  reduced anxiety. 
D)  inflation. 
E)  reduced expenses. 
A)  increased cost of living. 
B)  compound interest. 
C)  reduced anxiety. 
D)  inflation. 
E)  reduced expenses.

Question 11

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 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.
-A pure life annuity payment option will result in the [highest | lowest] possible monthly payments to the annuitant.

Accepted Answer

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

Question 13

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 14

For anyone born in 1960 or later,the Social Security Administration defines "full retirement age" as age 67.

Accepted Answer

A) True 
 B)False

Question 15

Jason just quit his current job.He has $13,000 vested in that 401(k)plan.Which of the following is true?

Accepted Answer

A)  If Jason takes the money and spends it,he will have to pay taxes and penalties on all $13,000. 
B)  If Jason takes the money and reinvests it in an IRA,the employer will write him a check for $13,000. 
C)  If Jason arranges a transfer of funds from his employer directly to his IRA trustee,his employer will withhold 20%. 
D)  a and b 
E)  a,b,and c 
A)  If Jason takes the money and spends it,he will have to pay taxes and penalties on all $13,000. 
B)  If Jason takes the money and reinvests it in an IRA,the employer will write him a check for $13,000. 
C)  If Jason arranges a transfer of funds from his employer directly to his IRA trustee,his employer will withhold 20%. 
D)  a and b 
E)  a,b,and c

Question 16

The biggest unknown factor that retirees have when estimating their retirement needs and income is:

Accepted Answer

A)  Social Security. 
B)  inflation. 
C)  pension benefits. 
D)  expenditures. 
E)  retirement age. 
A)  Social Security. 
B)  inflation. 
C)  pension benefits. 
D)  expenditures. 
E)  retirement age.

Question 17

Social Security benefits may be available to dependents of the retired,disabled,or deceased worker.

Accepted Answer

A) True 
 B)False

Question 18

An IRA is a type of an investment.

Accepted Answer

A) True 
 B)False

Question 19

You will receive the largest monthly payment under an annuity contract when the selected payment option is the:

Accepted Answer

A)  life annuity with no refund. 
B)  life annuity,period certain. 
C)  refund annuity. 
D)  annuity certain. 
E)  temporary life annuity. 
A)  life annuity with no refund. 
B)  life annuity,period certain. 
C)  refund annuity. 
D)  annuity certain. 
E)  temporary life annuity.

Question 20

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

The two ways to buy annuities are single premium and:

The Statement from Social Security would contain information about:

Which of the following has accounted for a growing amount of total retirement income?

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. -It usually makes less sense to convert a traditional IRA to a Roth IRA the [younger |older] you are.

Major sources of retirement income include all of the following except:

More than 50 percent of all wage earners and salaried workers today are covered by some type of employer-sponsored retirement or profit-sharing plan.

When estimating retirement needs,you use the before-retirement investment return rate to adjust the current dollar shortfall to the actual shortfall at retirement.

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

A $3,000 annual contribution to a retirement account earning 6% will be worth approximately _____ in 20 years.

The major financial benefit of beginning your retirement funding early is related 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.

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

For anyone born in 1960 or later,the Social Security Administration defines "full retirement age" as age 67.

Jason just quit his current job.He has $13,000 vested in that 401(k)plan.Which of the following is true?

The biggest unknown factor that retirees have when estimating their retirement needs and income is:

Social Security benefits may be available to dependents of the retired,disabled,or deceased worker.

An IRA is a type of an investment.

You will receive the largest monthly payment under an annuity contract when the selected payment option is the:

The proceeds of a variable annuity are dependent on the:

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

The two ways to buy annuities are single premium and:

The Statement from Social Security would contain information about:

Which of the following has accounted for a growing amount of total retirement income?

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. -It usually makes less sense to convert a traditional IRA to a Roth IRA the [younger |older] you are.

Major sources of retirement income include all of the following except:

More than 50 percent of all wage earners and salaried workers today are covered by some type of employer-sponsored retirement or profit-sharing plan.

When estimating retirement needs,you use the before-retirement investment return rate to adjust the current dollar shortfall to the actual shortfall at retirement.

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

A $3,000 annual contribution to a retirement account earning 6% will be worth approximately _____ in 20 years.

The major financial benefit of beginning your retirement funding early is related 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.

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

For anyone born in 1960 or later,the Social Security Administration defines "full retirement age" as age 67.

Jason just quit his current job.He has $13,000 vested in that 401(k)plan.Which of the following is true?

The biggest unknown factor that retirees have when estimating their retirement needs and income is:

Social Security benefits may be available to dependents of the retired,disabled,or deceased worker.

An IRA is a type of an investment.

You will receive the largest monthly payment under an annuity contract when the selected payment option is the:

The proceeds of a variable annuity are dependent on the:

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