Exam 15: Retirement Planning

Fred and Carlie want to save some money for a down payment on a house.They figure it will take at least 10 years to save up enough money.Which of the following would be the best way for them to save this money?

Today,there are roughly 18,000 publicly traded stock and bond funds,and for many workers,the prospect of choosing among them is paralyzing.

Anyone can open up an IRA account but not everyone may get tax-advantages from it because there are income limitations.

Social Security is a mandatory insurance program that provides a base level of protection for all of the following occurrences except one.Choose that one.

One of the best things about retirement is that retirees don't have to pay income taxes once they retire.

You have determined that you will need to accumulate $1,000,000 in your retirement account in order to cover your inflation-adjusted shortfall.Which of the following is closest to the amount of money you would need to put into a tax-deferred retirement account every year if you plan on retiring in 40 years? Assume an 8% average return on this account,and that it is empty today.

In the lowest income quintiles,the vast majority of retirement income comes from

The Roth IRA does not require that distributions begin by age 70 1/2.

By law,everyone must contribute the maximum amount into their 401(k)plans at work.

Like many Americans you know that you must plan your retirement funds carefully because there may be a discrepancy between the funds that you will need to survive on during retirement and the income that you will have available during retirement.What will likely be the relationship between fund needs and income available during retirement for most Americans?

If you receive $100,000 in retirement and are in a 26% tax bracket,how much will you receive after tax?

Alicia works two jobs and still makes very little income.Why is the Saver's Tax Credit a good idea for her?

Roth IRA's contributions are not tax deductible,however the distributions allow you to take money?

If your employer offers a 401(k)or 403(b)plan,why should you participate?

The Federal Insurance Contributions Act isn't an investment,but rather a mandatory insurance plan that one pays into through salary deductions.

Which of the following statements is true regarding Social Security retirement benefits?

Why does a tax-deferred retirement account accumulate more money than a taxable account,assuming the same amount is contributed every year and the accounts earn the same return every year?

Why have employers switched to defined-contribution plans instead of defined-benefits plans for most companies?

For low income senior households Social Security is a very important financial asset.

Why would it be a good idea to hire a Certified Financial Planner before you retire?