Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

If you work nine years under the social security system,you are

Accepted Answer

A)  fully insured. 
B)  partially insured. 
C)  privately insured. 
D)  currently insured. 
E)  uninsured. 
A)  fully insured. 
B)  partially insured. 
C)  privately insured. 
D)  currently insured. 
E)  uninsured. D

Question 3

A company using cliff vesting would legally have to give you vesting rights if you worked at a company 3 or more years.

Accepted Answer

A) True 
 B)False  True

Question 4

The major mistake(s)people make in retirement planning is(are)

Accepted Answer

A)  starting too early. 
B)  saving too little. 
C)  investing too aggressively. 
D)  a and b 
E)  a, b, and c 
A)  starting too early. 
B)  saving too little. 
C)  investing too aggressively. 
D)  a and b 
E)  a, b, and c

Question 5

Even the best retirement plan needs to be reviewed every few years.

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

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.
-Government research indicates that about [30 | 60] percent of households approaching retirement age have 401(k)accounts.

Accepted Answer

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

Question 8

Anyone with earned income can contribute to some type of IRA.

Accepted Answer

A) True 
 B)False

Question 9

Lillian has a defined benefit plan that promises an annual retirement benefit based on the average of her last three years of salary times 2 times years of service.At retirement Lillian has 15 years of service and an average salary over the last 3 years of $65,000.What will her annual benefit be?

Accepted Answer

A)  $65,000 
B)  $50,500 
C)  $35,400 
D)  $19,500 
E)  cannot determine 
A)  $65,000 
B)  $50,500 
C)  $35,400 
D)  $19,500 
E)  cannot determine

Question 10

An example of a type of plan where the amount the employee receives at retirement is dependent on investment return is a

Accepted Answer

A)  defined contribution plan. 
B)  defined benefit plan. 
C)  cash balance plan. 
D)  a and b 
E)  a, b, and c 
A)  defined contribution plan. 
B)  defined benefit plan. 
C)  cash balance plan. 
D)  a and b 
E)  a, b, and c

Question 11

Most people are too conservative when investing their retirement funds.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Bill has worked for White Drywall for 4 years.During this period White Drywall has contributed $25,000 to his retirement plan.Assuming the company uses graded vesting,how much will Bill be able to roll into an IRA if he left White Drywall at the end of 3 years?

Accepted Answer

A)  $ 0 
B)  $ 5,000 
C)  $10,000 
D)  $15,000 
E)  $20,000 
A)  $ 0 
B)  $ 5,000 
C)  $10,000 
D)  $15,000 
E)  $20,000

Question 14

Once you begin drawing social security benefits,you will receive a fixed level of income for the remainder of your life.

Accepted Answer

A) True 
 B)False

Question 15

Jacque Solis (age 38)is leaving her current job and would like to take a long vacation before starting new employment.She has $58,000 in a qualified plan that she would like to live on during this period.If she is in a 25 percent marginal tax bracket,how much will she have left after paying taxes and penalties?

Accepted Answer

A)  $58,000 
B)  $43,500 
C)  $37,700 
D)  $29,000 
E)  $14,500 
A)  $58,000 
B)  $43,500 
C)  $37,700 
D)  $29,000 
E)  $14,500

Question 16

____ are exclusively for the self-employed person and his/her employees.

Accepted Answer

A)  Keogh plans. 
B)  SEPs. 
C)  401(k) plans. 
D)  a and b 
E)  a, b, and c 
A)  Keogh plans. 
B)  SEPs. 
C)  401(k) plans. 
D)  a and b 
E)  a, b, and c

Question 17

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.
-In general,the tax law changes made in 2001 [increased | decreased] the tax advantages for retirement accounts.

Accepted Answer

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

Question 18

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.
-[401(k)| 403(b)] plans would be available for employees of a public,non-profit organization.

Accepted Answer

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

Question 19

Social security is meant to be a retirement income supplement.

Accepted Answer

A) True 
 B)False

Question 20

Jamie has worked for ABC Printing for 5 years.During this period ABC Printing has contributed $25,000 to her non-contributory retirement plan.Assuming ABC uses cliff vesting,the longest period allowed,how much will Jamie be able to roll into an IRA if she left ABC Printing?

Accepted Answer

A)  $ 0 
B)  $ 5,000 
C)  $10,000 
D)  $20,000 
E)  $25,000 
A)  $ 0 
B)  $ 5,000 
C)  $10,000 
D)  $20,000 
E)  $25,000

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

If you work nine years under the social security system,you are

A company using cliff vesting would legally have to give you vesting rights if you worked at a company 3 or more years.

The major mistake(s)people make in retirement planning is(are)

Even the best retirement plan needs to be reviewed every few years.

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

Anyone with earned income can contribute to some type of IRA.

Lillian has a defined benefit plan that promises an annual retirement benefit based on the average of her last three years of salary times 2 times years of service.At retirement Lillian has 15 years of service and an average salary over the last 3 years of $65,000.What will her annual benefit be?

An example of a type of plan where the amount the employee receives at retirement is dependent on investment return is a

Most people are too conservative when investing their retirement funds.

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

Bill has worked for White Drywall for 4 years.During this period White Drywall has contributed $25,000 to his retirement plan.Assuming the company uses graded vesting,how much will Bill be able to roll into an IRA if he left White Drywall at the end of 3 years?

Once you begin drawing social security benefits,you will receive a fixed level of income for the remainder of your life.

____ are exclusively for the self-employed person and his/her employees.

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. -[401(k)| 403(b)] plans would be available for employees of a public,non-profit organization.

Social security is meant to be a retirement income supplement.

Jamie has worked for ABC Printing for 5 years.During this period ABC Printing has contributed $25,000 to her non-contributory retirement plan.Assuming ABC uses cliff vesting,the longest period allowed,how much will Jamie be able to roll into an IRA if she left ABC Printing?

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

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

If you work nine years under the social security system,you are

A company using cliff vesting would legally have to give you vesting rights if you worked at a company 3 or more years.

The major mistake(s)people make in retirement planning is(are)

Even the best retirement plan needs to be reviewed every few years.

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

Anyone with earned income can contribute to some type of IRA.

Lillian has a defined benefit plan that promises an annual retirement benefit based on the average of her last three years of salary times 2 times years of service.At retirement Lillian has 15 years of service and an average salary over the last 3 years of $65,000.What will her annual benefit be?

An example of a type of plan where the amount the employee receives at retirement is dependent on investment return is a

Most people are too conservative when investing their retirement funds.

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

Bill has worked for White Drywall for 4 years.During this period White Drywall has contributed $25,000 to his retirement plan.Assuming the company uses graded vesting,how much will Bill be able to roll into an IRA if he left White Drywall at the end of 3 years?

Once you begin drawing social security benefits,you will receive a fixed level of income for the remainder of your life.

____ are exclusively for the self-employed person and his/her employees.

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. -[401(k)| 403(b)] plans would be available for employees of a public,non-profit organization.

Social security is meant to be a retirement income supplement.

Jamie has worked for ABC Printing for 5 years.During this period ABC Printing has contributed $25,000 to her non-contributory retirement plan.Assuming ABC uses cliff vesting,the longest period allowed,how much will Jamie be able to roll into an IRA if she left ABC Printing?

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