Question 1

Discuss the basic considerations when facing retirement.

Accepted Answer

Make sure you meet the qualifications to

Question 2

Lori Watts favors the traditional IRA over the Roth IRA.What advantage does the traditional IRA have over the Roth?

Accepted Answer

A) The earnings are tax-exempt,unlike a Roth IRA. 
B) Contributions are likely to be fully or partially tax deductible. 
C) It saves tax money for education. 
D) There are no penalties for early withdrawals. 
A) The earnings are tax-exempt,unlike a Roth IRA. 
B) Contributions are likely to be fully or partially tax deductible. 
C) It saves tax money for education. 
D) There are no penalties for early withdrawals.

Question 3

Relate the 7 steps to funding your retirement needs.What is the hardest part?

Accepted Answer

1.Set realistic and well thought out goa

Question 4

A Coverdell Education Savings Account works just like the Roth IRA for qualified education expenses,except with respect to contributions.

Accepted Answer

A) True 
 B)False

Question 5

Brian works for Walmart.Walmart contributes company stock into his retirement account instead of cash.This is called a(n)

Accepted Answer

A) ESOP. 
B) thrift. 
C) EFLP. 
D) stock-contribution plan. 
E) none of the above. 
A) ESOP. 
B) thrift. 
C) EFLP. 
D) stock-contribution plan. 
E) none of the above.

Question 6

What are the advantages and disadvantages of a defined-contribution plan like a 401k?

Accepted Answer

The big advantages are the tax-deductibi

Question 7

With a Roth IRA,after five years you can make withdrawals before age 59 1/2 without a penalty but you must pay taxes on the withdrawals.

Accepted Answer

A) True 
 B)False

Question 8

How does Uncle Sam determine our Social Security monthly retirement check for all practical purposes?

Accepted Answer

Our number of years of earnings,average

Question 9

Frances McClurg favors the Roth IRA over the traditional IRA.What advantage does the Roth provide over the traditional IRA?

Accepted Answer

A) She can avoid income taxes when she withdraws. 
B) The earnings are tax deferred,unlike a traditional IRA. 
C) Contributions are tax deductible. 
D) It saves tax money for education. 
A) She can avoid income taxes when she withdraws. 
B) The earnings are tax deferred,unlike a traditional IRA. 
C) Contributions are tax deductible. 
D) It saves tax money for education.

Question 10

Valerie works as a free-lance artist.Her financial advisor suggested she establish a Keogh plan for her retirement.Is this an appropriate suggestion for her?

Accepted Answer

A) Yes 
B) No 
A) Yes 
B) No

Question 11

Explain why we do not invest in Social Security.What are the four basic benefits for those who are qualified?

Accepted Answer

We actually purchase mandatory

Question 12

Many older companies have changed from a defined-benefit plan to a(n)________,which is a retirement plan where workers are credited with a percentage of their pay each year,plus a predetermined rate of interest.

Accepted Answer

A) funded pension plan 
B) cash balance plan 
C) unfunded pension plan 
D) percentage plus inflation plan 
E) none of the above 
A) funded pension plan 
B) cash balance plan 
C) unfunded pension plan 
D) percentage plus inflation plan 
E) none of the above

Question 13

Consistently saving a little money for retirement when you are in your twenties is much better than saving a lot more money when you are in your fifties.

Accepted Answer

A) True 
 B)False

Question 14

Under a defined benefit plan you receive a promised or "defined" benefit payout at retirement.

Accepted Answer

A) True 
 B)False

Question 15

What are the disadvantages of an ESOP retirement plan?

Accepted Answer

A) Your retirement account is not diversified. 
B) The return on your account is subject to the success of the company. 
C) If the company files for bankruptcy,the stock in your account could become worthless. 
D) All of the above are correct. 
E) Only A and C are correct. 
A) Your retirement account is not diversified. 
B) The return on your account is subject to the success of the company. 
C) If the company files for bankruptcy,the stock in your account could become worthless. 
D) All of the above are correct. 
E) Only A and C are correct.

Question 16

Lucius starts saving $100 per month at age 25 and averages 6% per year compounded monthly.Hector starts saving $1,215.22 per month at age 55 and averages 6% per year compounded monthly.Who will be better off at age 65 assuming neither had in money in their account when they started?

Accepted Answer

A) Lucius will have $15,476.20 and Hector will have $16,017.57 at age 65. 
B) Lucius will have $199,149.07 and Hector will have $163,879.34 at age 65. 
C) They both will have the same amount of money in their accounts at age 65. 
D) Not enough information available. 
A) Lucius will have $15,476.20 and Hector will have $16,017.57 at age 65. 
B) Lucius will have $199,149.07 and Hector will have $163,879.34 at age 65. 
C) They both will have the same amount of money in their accounts at age 65. 
D) Not enough information available.

Question 17

How are distributions/payouts/settlements taxed?

Accepted Answer

Annuity payouts are taxed as n

Question 18

An employee's Social Security contributions are invested in a general fund account and will be made available for the employee at retirement.

Accepted Answer

A) True 
 B)False

Question 19

Why might one want to select the lump-sum payment option for one's retirement funds?

Accepted Answer

A) Taking the lump-sum can be a hedge against inflation. 
B) The lump-sum option provides greater flexibility than other options. 
C) You can invest the funds and perhaps earn a higher return. 
D) Having access to the funds provides money for emergencies. 
E) All of the above 
A) Taking the lump-sum can be a hedge against inflation. 
B) The lump-sum option provides greater flexibility than other options. 
C) You can invest the funds and perhaps earn a higher return. 
D) Having access to the funds provides money for emergencies. 
E) All of the above

Question 20

Most married couples who choose an annuity as a payout in retirement take which type of annuity?

Accepted Answer

A) Single life 
B) Annuity for life 
C) Joint and survivor 
D) Inflation protection 
A) Single life 
B) Annuity for life 
C) Joint and survivor 
D) Inflation protection

Discuss the basic considerations when facing retirement.

Lori Watts favors the traditional IRA over the Roth IRA.What advantage does the traditional IRA have over the Roth?

Relate the 7 steps to funding your retirement needs.What is the hardest part?

A Coverdell Education Savings Account works just like the Roth IRA for qualified education expenses,except with respect to contributions.

Brian works for Walmart.Walmart contributes company stock into his retirement account instead of cash.This is called a(n)

What are the advantages and disadvantages of a defined-contribution plan like a 401k?

With a Roth IRA,after five years you can make withdrawals before age 59 1/2 without a penalty but you must pay taxes on the withdrawals.

How does Uncle Sam determine our Social Security monthly retirement check for all practical purposes?

Frances McClurg favors the Roth IRA over the traditional IRA.What advantage does the Roth provide over the traditional IRA?

Valerie works as a free-lance artist.Her financial advisor suggested she establish a Keogh plan for her retirement.Is this an appropriate suggestion for her?

Explain why we do not invest in Social Security.What are the four basic benefits for those who are qualified?

Many older companies have changed from a defined-benefit plan to a(n)________,which is a retirement plan where workers are credited with a percentage of their pay each year,plus a predetermined rate of interest.

Consistently saving a little money for retirement when you are in your twenties is much better than saving a lot more money when you are in your fifties.

Under a defined benefit plan you receive a promised or "defined" benefit payout at retirement.

What are the disadvantages of an ESOP retirement plan?

Lucius starts saving $100 per month at age 25 and averages 6% per year compounded monthly.Hector starts saving $1,215.22 per month at age 55 and averages 6% per year compounded monthly.Who will be better off at age 65 assuming neither had in money in their account when they started?

How are distributions/payouts/settlements taxed?

An employee's Social Security contributions are invested in a general fund account and will be made available for the employee at retirement.

Why might one want to select the lump-sum payment option for one's retirement funds?

Most married couples who choose an annuity as a payout in retirement take which type of annuity?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

Exam 15: Retirement Planning

Discuss the basic considerations when facing retirement.

Lori Watts favors the traditional IRA over the Roth IRA.What advantage does the traditional IRA have over the Roth?

Relate the 7 steps to funding your retirement needs.What is the hardest part?

A Coverdell Education Savings Account works just like the Roth IRA for qualified education expenses,except with respect to contributions.

Brian works for Walmart.Walmart contributes company stock into his retirement account instead of cash.This is called a(n)

What are the advantages and disadvantages of a defined-contribution plan like a 401k?

With a Roth IRA,after five years you can make withdrawals before age 59 1/2 without a penalty but you must pay taxes on the withdrawals.

How does Uncle Sam determine our Social Security monthly retirement check for all practical purposes?

Frances McClurg favors the Roth IRA over the traditional IRA.What advantage does the Roth provide over the traditional IRA?

Valerie works as a free-lance artist.Her financial advisor suggested she establish a Keogh plan for her retirement.Is this an appropriate suggestion for her?

Explain why we do not invest in Social Security.What are the four basic benefits for those who are qualified?

Many older companies have changed from a defined-benefit plan to a(n)________,which is a retirement plan where workers are credited with a percentage of their pay each year,plus a predetermined rate of interest.

Consistently saving a little money for retirement when you are in your twenties is much better than saving a lot more money when you are in your fifties.

Under a defined benefit plan you receive a promised or "defined" benefit payout at retirement.

What are the disadvantages of an ESOP retirement plan?

Lucius starts saving $100 per month at age 25 and averages 6% per year compounded monthly.Hector starts saving $1,215.22 per month at age 55 and averages 6% per year compounded monthly.Who will be better off at age 65 assuming neither had in money in their account when they started?

How are distributions/payouts/settlements taxed?

An employee's Social Security contributions are invested in a general fund account and will be made available for the employee at retirement.

Why might one want to select the lump-sum payment option for one's retirement funds?

Most married couples who choose an annuity as a payout in retirement take which type of annuity?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters