Question 1

For the average individual,which one of the following statements is most likely correct regarding retirement?

Accepted Answer

A)  My costs of daily living will decrease significantly once I retire.
B)  I can only expect to live about ten years in retirement,so I don't need to save all that much money.
C)  Once I retire,all my medical bills will be paid by Medicare.
D)  My employer's pension plan will provide sufficient income to meet all my retirement needs.
E)  I need to save whatever I can,even if it's a small amount,to help cover my retirement costs.F) C) and E)
G) None of the above

Question 2

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) B) and E)
G) C) and D)

Question 3

Sam Waterston has been making contributions into an individual retirement account to help pay for his children to go to college.Which type of account is he most likely using?

Accepted Answer

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

Question 4

Over the last two decades,the defined-benefit plan has continued to grow rapidly while the number of defined-contribution plans has generally dropped.

Accepted Answer

A) True 
 B)False

Question 5

As its retirement plan contribution,Aaron Copeland's employer has been buying shares of the company's stock for Aaron's benefit.What type of retirement plan does Aaron most likely have?

Accepted Answer

A)  money-purchase pension plan
B)  stock bonus plan
C)  profit-sharing plan
D)  salary reduction plan
E)  403(b) planF) A) and D)
G) All of the above

Question 6

Which statement is most likely correct about retirement planning?

Accepted Answer

A)  Social Security will cover most of your expenses.
B)  Your employer's pension combined with your Social Security will cover your retirement expenses.
C)  Most retirees don't need to worry about inflation.
D)  Your pension may remain constant even in an inflationary environment.
E)  Your living costs will remain constant once you retirE.F) D) and E)
G) A) and B)

Question 7

Saving now for the future requires tackling the trade-offs between spending and saving.

Accepted Answer

A) True 
 B)False

Question 8

A successful,happy retirement just doesn't happen;you have to plan for it.

Accepted Answer

A) True 
 B)False

Question 9

Annuity payments may either be a fixed or a variable amount.

Accepted Answer

A) True 
 B)False

Question 10

Your federal income taxes will probably be lower during the retirement years.

Accepted Answer

A) True 
 B)False

Question 11

What happens to your Social Security income if you retire early?

Accepted Answer

A)  There is a temporary reduction of 5/9 of one percent for each month that you retire early.
B)  There is a permanent reduction of 5/9 of one percent for each month that you retire early.
C)  There is a temporary reduction of one percent for each year that you retire early.
D)  There is a permanent reduction of one percent for each year that you retire early.
E)  There is no impact on your Social Security income if you retire early.F) B) and D)
G) A) and E)

Question 12

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 13

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 D)
G) None of the above

Question 14

According to the Social Security Administration,the Social Security program is financially sound.

Accepted Answer

A) True 
 B)False

Question 15

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) A) and B)
G) C) and D)

Question 16

The Education IRA was renamed the Coverdell Education Savings Account.

Accepted Answer

A) True 
 B)False

Question 17

People born after 1928 need at least 60 quarters of coverage to qualify for Social Security benefits.

Accepted Answer

A) True 
 B)False

Question 18

Which type of housing is preferred by most persons who are approaching retirement?

Accepted Answer

A)  house-sharing
B)  present home
C)  a smaller apartment
D)  nursing home
E)  boarding-house/rooming houseF) A) and B)
G) A) and C)

Question 19

Under certain circumstances,the Roth IRA allows for penalty-free withdrawals as well as tax-free distributions.

Accepted Answer

A) True 
 B)False

Question 20

What types of expenses might increase during retirement?

Accepted Answer

Medical expenses and...

Exam 18: Starting Early: Retirement Planning

People born after 1928 need at least 60 quarters of coverage to qualify for Social Security benefits.

Correct Answer
verified

Which statement is most likely correct about retirement planning?

Correct Answer
verified

As its retirement plan contribution,Aaron Copeland's employer has been buying shares of the company's stock for Aaron's benefit.What type of retirement plan does Aaron most likely have?

Correct Answer
verified

According to the Social Security Administration,the Social Security program is financially sound.

Correct Answer
verified

Sam Waterston has been making contributions into an individual retirement account to help pay for his children to go to college.Which type of account is he most likely using?

Correct Answer
verified

What happens to your Social Security income if you retire early?

Correct Answer
verified

Under certain circumstances,the Roth IRA allows for penalty-free withdrawals as well as tax-free distributions.

Correct Answer
verified

For the average individual,which one of the following statements is most likely correct regarding retirement?

Correct Answer
verified

What types of expenses might increase during retirement?

Correct Answer
verified
Medical expenses and...
View Answer

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

The Education IRA was renamed the Coverdell Education Savings Account.

Correct Answer
verified

A successful,happy retirement just doesn't happen;you have to plan for it.

Correct Answer
verified

Over the last two decades,the defined-benefit plan has continued to grow rapidly while the number of defined-contribution plans has generally dropped.

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

Annuity payments may either be a fixed or a variable amount.

Correct Answer
verified

Saving now for the future requires tackling the trade-offs between spending and saving.

Correct Answer
verified

Which type of housing is preferred by most persons who are approaching retirement?

Correct Answer
verified

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

Correct Answer
verified

Your federal income taxes will probably be lower during the retirement years.

Correct Answer
verified

Exam 18: Starting Early: Retirement Planning

People born after 1928 need at least 60 quarters of coverage to qualify for Social Security benefits.

Correct AnswerverifiedShow Answer

Which statement is most likely correct about retirement planning?

Correct AnswerverifiedShow Answer

As its retirement plan contribution,Aaron Copeland's employer has been buying shares of the company's stock for Aaron's benefit.What type of retirement plan does Aaron most likely have?

Correct AnswerverifiedShow Answer

According to the Social Security Administration,the Social Security program is financially sound.

Correct AnswerverifiedShow Answer

Sam Waterston has been making contributions into an individual retirement account to help pay for his children to go to college.Which type of account is he most likely using?

Correct AnswerverifiedShow Answer

What happens to your Social Security income if you retire early?

Correct AnswerverifiedShow Answer

Under certain circumstances,the Roth IRA allows for penalty-free withdrawals as well as tax-free distributions.

Correct AnswerverifiedShow Answer

For the average individual,which one of the following statements is most likely correct regarding retirement?

Correct AnswerverifiedShow Answer

What types of expenses might increase during retirement?

Correct AnswerverifiedMedical expenses and...View AnswerShow 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

The Education IRA was renamed the Coverdell Education Savings Account.

Correct AnswerverifiedShow Answer

A successful,happy retirement just doesn't happen;you have to plan for it.

Correct AnswerverifiedShow Answer

Over the last two decades,the defined-benefit plan has continued to grow rapidly while the number of defined-contribution plans has generally dropped.

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

Annuity payments may either be a fixed or a variable amount.

Correct AnswerverifiedShow Answer

Saving now for the future requires tackling the trade-offs between spending and saving.

Correct AnswerverifiedShow Answer

Which type of housing is preferred by most persons who are approaching retirement?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Your federal income taxes will probably be lower during the retirement years.

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
Medical expenses and...
View 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
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Correct Answer
verified

Correct Answer
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