Exam 14: Planning for Retirement

If one is unsure about the facts needed to estimate retirement needs,it is better to do nothing for a few years.

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.

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

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

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

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 major source of retirement income for current retirees is [Social Security | personal savings].

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

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

Supplemental retirement plans are usually voluntary.

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.

Having an accurate current income and expenditures statement would be very useful when calculating retirement needs.

In order to avoid penalties,one who is not gainfully employed must typically start taking minimum distributions from Keogh retirement accounts by age:

Annuity premiums are paid to the insurance company during the accumulation period.

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

403(b)and 457 plans are similar to 401(k)plans,but they are for employees of public and nonprofit organizations.

Retirement plan portability is characterized by one's ability to move retirement plan investments from one investment to another investment while working for the company.

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

Variable annuities are usually better choices than fixed annuities for risk tolerant investors during the withdrawal phase of the annuity.

Whether or not your Social Security benefits will be subject to income taxes depends on how much other income you received during the year.

Julie's employer has a defined benefits retirement plan which pays 3.2 percent of her last year's salary for each year of employment.Julie estimates her final salary will be $85,000 and she will have worked for 20 years.What is her expected retirement benefit?