Question 1

In a "certain period" annuity,the longer the certain period is,the ________ the monthly amount will be.

Accepted Answer

A) Larger 
B) Equal 
C) Smaller 
D) Greater 
A) Larger 
B) Equal 
C) Smaller 
D) Greater

Question 2

According to a Money magazine poll,what percent of Millennials say they are in agreement with their partners on saving for retirement?

Accepted Answer

A) 90% 
B) 75% 
C) 79% 
D) 50% 
A) 90% 
B) 75% 
C) 79% 
D) 50%

Question 3

Rihab just got a new job and wants to roll over her retirement account from her previous job at a large corporation into an IRA.Which of the following is true?

Accepted Answer

A) Doing this avoids the 10% early distribution penalty. 
B) Rihab should speak to a financial planner to learn make sure she follows the rollover rules to avoid taxes. 
C) Both A and B 
D) Neither A nor B 
A) Doing this avoids the 10% early distribution penalty. 
B) Rihab should speak to a financial planner to learn make sure she follows the rollover rules to avoid taxes. 
C) Both A and B 
D) Neither A nor B

Question 4

If all contributions to your IRA are tax deductible,then all withdrawals from your IRA will be taxed,unless you're just moving your money into another IRA.

Accepted Answer

A) True 
 B)False

Question 5

The good thing about retirement is you no longer have to pay income taxes.

Accepted Answer

A) True 
 B)False

Question 6

Compare and contrast the defined-contribution plans.

Accepted Answer

Under profit-sharing plans your employer

Question 7

Two of the most important considerations when saving for retirement is the time you have to save and the return you earn on your savings.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements about saving for college is not true?

Accepted Answer

A) The Coverdell Education Savings Account works just like the Roth IRA,except with respect to contributions. 
B) If the money in a Coverdell Education Savings Account isn't used for college,taxes and penalties may apply. 
C) Some 529 plans are prepaid college tuition plans. 
D) You must open a 529 plan sponsored by the state in which you reside. 
E) 529 college savings plans offer more flexibility than prepaid college tuition plans. 
A) The Coverdell Education Savings Account works just like the Roth IRA,except with respect to contributions. 
B) If the money in a Coverdell Education Savings Account isn't used for college,taxes and penalties may apply. 
C) Some 529 plans are prepaid college tuition plans. 
D) You must open a 529 plan sponsored by the state in which you reside. 
E) 529 college savings plans offer more flexibility than prepaid college tuition plans.

Question 9

As a young consumer you would be wise to be very cautious with your investing and avoid investing in stocks.

Accepted Answer

A) True 
 B)False

Question 10

Jose does not have a retirement plan at work.He currently earns $30,000 in salary and is in the 15% marginal tax bracket.If he contributes the maximum contribution of $5,500 to his traditional IRA,how much money will he save on his income tax liability?

Accepted Answer

A) He won't save any money,since only the Roth IRA has tax deductions on contributions. 
B) He won't save any money,since his income does not qualify for tax deductions for a qualified plan. 
C) $825 
D) $5,000 
A) He won't save any money,since only the Roth IRA has tax deductions on contributions. 
B) He won't save any money,since his income does not qualify for tax deductions for a qualified plan. 
C) $825 
D) $5,000

Question 11

Under a defined-contribution plan,your employer alone or you and your employer together contribute directly to an individual account set aside specifically for you.

Accepted Answer

A) True 
 B)False

Question 12

June and Ward Cleaver are married.June works as an accountant and contributes to a 401(k)plan at work.Ward is a web page designer and works for himself from their home.What type of retirement plan would be an option for Ward?

Accepted Answer

A) Keogh plan 
B) SEP-IRA plan 
C) Individual IRA 
D) All of the above are correct. 
E) Only A and C are correct. 
A) Keogh plan 
B) SEP-IRA plan 
C) Individual IRA 
D) All of the above are correct. 
E) Only A and C are correct.

Question 13

Jordan wants to retire in 35 years.She wants to have $75,000 per year in retirement and she expects retirement to last for 35 years.if she can earn 8% before retirement and 5% after retirement,how much must she deposit at the end of each of the next 35 years?

Accepted Answer

A) $9,677.70 
B) $5,072.59 
C) $7,126.78 
D) $13,596.77 
A) $9,677.70 
B) $5,072.59 
C) $7,126.78 
D) $13,596.77

Question 14

The difference between a Money Purchase Plan and a Profit Sharing plan is that

Accepted Answer

A) with the Profit Sharing Plan the employee is guaranteed to see profits in their retirement funds. 
B) with the Money Purchase Plan the contributions are required regardless of how the firm performs. 
C) Profit Sharing Plans constantly outperform Money Purchase Plans. 
D) all of the above are correct. 
E) both A and C are correct. 
A) with the Profit Sharing Plan the employee is guaranteed to see profits in their retirement funds. 
B) with the Money Purchase Plan the contributions are required regardless of how the firm performs. 
C) Profit Sharing Plans constantly outperform Money Purchase Plans. 
D) all of the above are correct. 
E) both A and C are correct.

Question 15

The Savers Tax Credit is designed to encourage low to moderate income workers contribute to their retirement accounts.

Accepted Answer

A) True 
 B)False

Question 16

Social Security is a system where current workers' pay taxes that are used to pay current retirees' benefits.How is Social Security funded?

Accepted Answer

A) Income taxes by all Americans 
B) Payroll taxes on employees up to a salary cap 
C) Payroll taxes on employers up to a salary cap 
D) All of the above are correct. 
E) Only B and C are correct. 
A) Income taxes by all Americans 
B) Payroll taxes on employees up to a salary cap 
C) Payroll taxes on employers up to a salary cap 
D) All of the above are correct. 
E) Only B and C are correct.

Question 17

With a ________,you,and usually your employer,pay funds into your retirement plan.

Accepted Answer

A) deducted-benefit plan 
B) noncontributory retirement plan 
C) contributory retirement plan 
D) none of the above 
A) deducted-benefit plan 
B) noncontributory retirement plan 
C) contributory retirement plan 
D) none of the above

Question 18

Defined-benefit pension plans are generally ________ and they lack ________.

Accepted Answer

A) contributory;divesting 
B) noncontributory;divesting 
C) contributory;portability 
D) noncontributory;portability 
E) vested;portability 
A) contributory;divesting 
B) noncontributory;divesting 
C) contributory;portability 
D) noncontributory;portability 
E) vested;portability

Question 19

What is a disadvantage of the "Prepaid College Tuition Plan" version of the 529 plan?

Accepted Answer

A) Distributions before age 59 1/2 incur a 10% tax penalty. 
B) They generally guarantee that your child will be covered only if he or she attends a public in-state university or college. 
C) They allow greater flexibility than the College Savings Plans. 
D) All of the above. 
E) None of the above. 
A) Distributions before age 59 1/2 incur a 10% tax penalty. 
B) They generally guarantee that your child will be covered only if he or she attends a public in-state university or college. 
C) They allow greater flexibility than the College Savings Plans. 
D) All of the above. 
E) None of the above.

Question 20

What is the purpose of a rollover when it comes to retirement plans?

Accepted Answer

With the popularity of defined-contribut

In a "certain period" annuity,the longer the certain period is,the ________ the monthly amount will be.

According to a Money magazine poll,what percent of Millennials say they are in agreement with their partners on saving for retirement?

Rihab just got a new job and wants to roll over her retirement account from her previous job at a large corporation into an IRA.Which of the following is true?

If all contributions to your IRA are tax deductible,then all withdrawals from your IRA will be taxed,unless you're just moving your money into another IRA.

The good thing about retirement is you no longer have to pay income taxes.

Compare and contrast the defined-contribution plans.

Two of the most important considerations when saving for retirement is the time you have to save and the return you earn on your savings.

Which of the following statements about saving for college is not true?

As a young consumer you would be wise to be very cautious with your investing and avoid investing in stocks.

Jose does not have a retirement plan at work.He currently earns $30,000 in salary and is in the 15% marginal tax bracket.If he contributes the maximum contribution of $5,500 to his traditional IRA,how much money will he save on his income tax liability?

Under a defined-contribution plan,your employer alone or you and your employer together contribute directly to an individual account set aside specifically for you.

June and Ward Cleaver are married.June works as an accountant and contributes to a 401(k)plan at work.Ward is a web page designer and works for himself from their home.What type of retirement plan would be an option for Ward?

Jordan wants to retire in 35 years.She wants to have $75,000 per year in retirement and she expects retirement to last for 35 years.if she can earn 8% before retirement and 5% after retirement,how much must she deposit at the end of each of the next 35 years?

The difference between a Money Purchase Plan and a Profit Sharing plan is that

The Savers Tax Credit is designed to encourage low to moderate income workers contribute to their retirement accounts.

Social Security is a system where current workers' pay taxes that are used to pay current retirees' benefits.How is Social Security funded?

With a ________,you,and usually your employer,pay funds into your retirement plan.

Defined-benefit pension plans are generally and they lack .

What is a disadvantage of the "Prepaid College Tuition Plan" version of the 529 plan?

What is the purpose of a rollover when it comes to retirement plans?

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

In a "certain period" annuity,the longer the certain period is,the ________ the monthly amount will be.

According to a Money magazine poll,what percent of Millennials say they are in agreement with their partners on saving for retirement?

Rihab just got a new job and wants to roll over her retirement account from her previous job at a large corporation into an IRA.Which of the following is true?

If all contributions to your IRA are tax deductible,then all withdrawals from your IRA will be taxed,unless you're just moving your money into another IRA.

The good thing about retirement is you no longer have to pay income taxes.

Compare and contrast the defined-contribution plans.

Two of the most important considerations when saving for retirement is the time you have to save and the return you earn on your savings.

Which of the following statements about saving for college is not true?

As a young consumer you would be wise to be very cautious with your investing and avoid investing in stocks.

Jose does not have a retirement plan at work.He currently earns $30,000 in salary and is in the 15% marginal tax bracket.If he contributes the maximum contribution of $5,500 to his traditional IRA,how much money will he save on his income tax liability?

Under a defined-contribution plan,your employer alone or you and your employer together contribute directly to an individual account set aside specifically for you.

June and Ward Cleaver are married.June works as an accountant and contributes to a 401(k)plan at work.Ward is a web page designer and works for himself from their home.What type of retirement plan would be an option for Ward?

Jordan wants to retire in 35 years.She wants to have $75,000 per year in retirement and she expects retirement to last for 35 years.if she can earn 8% before retirement and 5% after retirement,how much must she deposit at the end of each of the next 35 years?

The difference between a Money Purchase Plan and a Profit Sharing plan is that

The Savers Tax Credit is designed to encourage low to moderate income workers contribute to their retirement accounts.

Social Security is a system where current workers' pay taxes that are used to pay current retirees' benefits.How is Social Security funded?

With a ________,you,and usually your employer,pay funds into your retirement plan.

Defined-benefit pension plans are generally ________ and they lack ________.

What is a disadvantage of the "Prepaid College Tuition Plan" version of the 529 plan?

What is the purpose of a rollover when it comes to retirement plans?

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

Defined-benefit pension plans are generally and they lack .