Question 1

Most people can qualify for reduced Social Security retirement benefits at age 62.

Accepted Answer

A) True 
 B)False

Question 2

Social Security covers approximately what percent of all U.S.workers?

Accepted Answer

A)  72
B)  78
C)  86
D)  97
E)  99F) A) and E)
G) A) and C)

Question 3

Bruce Willis has been making contributions into an individual retirement account on behalf of his nonworking wife.What type of individual retirement account is this?

Accepted Answer

A)  Traditional IRA
B)  Roth IRA
C)  Spousal IRA
D)  Coverdell Education Savings Account
E)  SEP-IRAF) B) and E)
G) A) and B)

Question 4

Social Security should be the only source of your retirement income.

Accepted Answer

A) True 
 B)False

Question 5

Which is correct with respect to life expectancy?

Accepted Answer

A)  Men have a longer life expectancy than women at age 65.
B)  There is no difference in life expectancy between men and women at age 65.
C)  Women have a longer life expectancy than men at age 65.
D)  There is no difference in life expectancy among retirees in retirement communities at age 65.
E)  None of these statements is correct.F) B) and D)
G) C) and E)

Question 6

Why is retirement planning important?

Accepted Answer

Retirement planning is important because...

Question 7

A joint-and-survivor annuity pays its installments until the death of the last designated survivor.

Accepted Answer

A) True 
 B)False

Question 8

Which one of the following is probably the best suggestion for staying within your retirement income?

Accepted Answer

A)  Skip leisure activities
B)  Cut your food expenditures
C)  Cancel your life and property insurance
D)  Use your skills and time instead of your money
E)  Get rid of your health insuranceF) B) and D)
G) A) and D)

Question 9

Although medical expenses vary from person to person,they tend to decrease with age.

Accepted Answer

A) True 
 B)False

Question 10

If you do not plan to retire early,then when should you apply for Social Security?

Accepted Answer

A)  3 months before your 65th birthday
B)  1 year before your 65th birthday
C)  1 year after your 65th birthday
D)  10 years before your 65th birthday
E)  On your 65th birthdayF) A) and D)
G) A) and B)

Question 11

An annuity in which you receive an income for the rest of your life,but no payments are made to anyone after your death is called:

Accepted Answer

A)  straight life annuity.
B)  life annuity with installment certain.
C)  installment refund annuity.
D)  a life with period certain annuity.
E)  Keogh annuity.F) B) and E)
G) B) and D)

Question 12

A SEP-IRA plan is simply an individual retirement account funded by the employer.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a tip from retirement specialists on how to uncover hidden taxes and other costs of a retirement area?

Accepted Answer

A)  Contact the local Chamber of Commerce to get an economic profile.
B)  Contact the state's tax department to find out state income, sales, and inheritance taxes.
C)  Call a local CPA to find out which taxes are rising.
D)  Rent for a while instead of buying immediately.
E)  Retirement specialists recommend all of these actions to uncover hidden taxes and costs.F) B) and D)
G) A) and B)

Question 14

Pension plan portability enables you to carry earned benefits from one employer's pension plan to another's when you change jobs.

Accepted Answer

A) True 
 B)False

Question 15

Sarah Logan is a professor at a public university.Her employer makes nontaxable contributions to a plan in her name and reduces her salary by the same amount.What type of retirement plan does Sarah have?

Accepted Answer

A)  Money-purchase pension plan
B)  Stock bonus plan
C)  Profit-sharing plan
D)  Defined benefit plan
E)  403(b)  planF) B) and D)
G) A) and E)

Question 16

Cynthia Coleman is reviewing her assets and liabilities.What is her net worth?

Accepted Answer

Assets:
Cash in checking account,$800
Ca...

Question 17

Your Social Security benefits may be reduced if you earn above a certain amount a year,depending on your age and the amount you earn.

Accepted Answer

A) True 
 B)False

Question 18

When you change jobs,your 401(k)plan savings can be left with the previous employer's plan,can be rolled over to the new employer's plan or to an IRA,or can be cashed out

Accepted Answer

A) True 
 B)False

Question 19

Ted Riley owns a vehicle worth $25,000 and a home worth $225,000.He has a checking account balance of $500,a savings account balance of $1,500,and a mutual fund worth $85,000.His personal assets are worth $90,000.He still owes $10,000 on his car,$100,000 on his home,and $1,000 on his credit card.What is Ted's net worth?

Accepted Answer

A)  $538,000
B)  $427,000
C)  $316,000
D)  $111,000
E)  $136,000F) C) and D)
G) A) and B)

Question 20

Which one of the following expenditures for retirees is most likely to decrease?

Accepted Answer

A)  Food
B)  Insurance
C)  Expenses for leisure activities
D)  Medical expenses
E)  Federal income taxesF) A) and E)
G) C) and D)

Exam 18: Starting Early: Retirement Planning

Which one of the following is probably the best suggestion for staying within your retirement income?

Correct Answer
verified

Correct Answer
verified

An annuity in which you receive an income for the rest of your life,but no payments are made to anyone after your death is called:

Correct Answer
verified

Although medical expenses vary from person to person,they tend to decrease with age.

Correct Answer
verified

Most people can qualify for reduced Social Security retirement benefits at age 62.

Correct Answer
verified

Which of the following is a tip from retirement specialists on how to uncover hidden taxes and other costs of a retirement area?

Correct Answer
verified

Which is correct with respect to life expectancy?

Correct Answer
verified

Your Social Security benefits may be reduced if you earn above a certain amount a year,depending on your age and the amount you earn.

Correct Answer
verified

A joint-and-survivor annuity pays its installments until the death of the last designated survivor.

Correct Answer
verified

Sarah Logan is a professor at a public university.Her employer makes nontaxable contributions to a plan in her name and reduces her salary by the same amount.What type of retirement plan does Sarah have?

Correct Answer
verified

A SEP-IRA plan is simply an individual retirement account funded by the employer.

Correct Answer
verified

Why is retirement planning important?

Correct Answer
verified
Retirement planning is important because...
View Answer

Which one of the following expenditures for retirees is most likely to decrease?

Correct Answer
verified

Social Security should be the only source of your retirement income.

Correct Answer
verified

If you do not plan to retire early,then when should you apply for Social Security?

Correct Answer
verified

When you change jobs,your 401(k)plan savings can be left with the previous employer's plan,can be rolled over to the new employer's plan or to an IRA,or can be cashed out

Correct Answer
verified

Cynthia Coleman is reviewing her assets and liabilities.What is her net worth?

Correct Answer
verified
Assets:
Cash in checking account,$800
Ca...
View Answer

Social Security covers approximately what percent of all U.S.workers?

Correct Answer
verified

Pension plan portability enables you to carry earned benefits from one employer's pension plan to another's when you change jobs.

Correct Answer
verified

Bruce Willis has been making contributions into an individual retirement account on behalf of his nonworking wife.What type of individual retirement account is this?

Correct Answer
verified

Exam 18: Starting Early: Retirement Planning

Which one of the following is probably the best suggestion for staying within your retirement income?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An annuity in which you receive an income for the rest of your life,but no payments are made to anyone after your death is called:

Correct AnswerverifiedShow Answer

Although medical expenses vary from person to person,they tend to decrease with age.

Correct AnswerverifiedShow Answer

Most people can qualify for reduced Social Security retirement benefits at age 62.

Correct AnswerverifiedShow Answer

Which of the following is a tip from retirement specialists on how to uncover hidden taxes and other costs of a retirement area?

Correct AnswerverifiedShow Answer

Which is correct with respect to life expectancy?

Correct AnswerverifiedShow Answer

Your Social Security benefits may be reduced if you earn above a certain amount a year,depending on your age and the amount you earn.

Correct AnswerverifiedShow Answer

A joint-and-survivor annuity pays its installments until the death of the last designated survivor.

Correct AnswerverifiedShow Answer

Sarah Logan is a professor at a public university.Her employer makes nontaxable contributions to a plan in her name and reduces her salary by the same amount.What type of retirement plan does Sarah have?

Correct AnswerverifiedShow Answer

A SEP-IRA plan is simply an individual retirement account funded by the employer.

Correct AnswerverifiedShow Answer

Why is retirement planning important?

Correct AnswerverifiedRetirement planning is important because...View AnswerShow Answer

Which one of the following expenditures for retirees is most likely to decrease?

Correct AnswerverifiedShow Answer

Social Security should be the only source of your retirement income.

Correct AnswerverifiedShow Answer

If you do not plan to retire early,then when should you apply for Social Security?

Correct AnswerverifiedShow Answer

When you change jobs,your 401(k)plan savings can be left with the previous employer's plan,can be rolled over to the new employer's plan or to an IRA,or can be cashed out

Correct AnswerverifiedShow Answer

Cynthia Coleman is reviewing her assets and liabilities.What is her net worth?

Correct AnswerverifiedAssets:Cash in checking account,$800Ca...View AnswerShow Answer

Social Security covers approximately what percent of all U.S.workers?

Correct AnswerverifiedShow Answer

Pension plan portability enables you to carry earned benefits from one employer's pension plan to another's when you change jobs.

Correct AnswerverifiedShow Answer

Bruce Willis has been making contributions into an individual retirement account on behalf of his nonworking wife.What type of individual retirement account is this?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Retirement planning is important because...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Assets:
Cash in checking account,$800
Ca...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified