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Exam 18: Starting Early: Retirement Planning

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Question 51

Multiple Choice

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Which retirement plan was specifically developed for self-employed individuals and their employees?

A) Roth IRA
B) Traditional IRA
C) Defined-contribution plan
D) Keogh plan
E) Defined-benefit plan

F) A) and E)
G) A) and D)

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Question 52

Multiple Choice

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When a lender uses your house as collateral to buy an annuity for you from a life insurance company,it is called a reverse annuity mortgage or:

A) an obverse annuity mortgage.
B) an equity conversion.
C) mortgage life insurance.
D) a level-premium annuity.
E) whole life insurance.

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

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Question 53

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Only by saving now and curtailing current spending can you ensure a comfortable retirement later.

Ted Riley owns a vehicle worth $20,000 and a home worth $230,000.He has a checking account balance of $1,000,a savings account balance of $1,000,and a mutual fund worth $75,000.His personal assets are worth $100,000.He still owes $10,000 on his car,$101,000 on his home,and $1,000 on his credit card.What is Ted's net worth?

Which one of the following expenses for retirees is most likely to increase?

Almost one out of every ________ Americans collects some kind of Social Security benefit.

Which of the following are considered tax-sheltered annuity plans?

In a marriage that lasts more than 15 years,there's generally a ________ split of the marital assets during a divorce.

Because of longer life expectancies,the full retirement age is greater than age 65 for younger individuals.

Your expenses for leisure activities will probably decrease during retirement.

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

Possible sources of income for many retirees include:

Immediate annuities provide income payments at once and are usually purchased with a lump-sum payment.

Why is retirement planning important?

Divorce creates difficulties when it comes to division of marital assets for adults thinking about their retirement years.

What are the possible sources of income for retirees?

What types of expenses might increase during retirement?

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

Although the full retirement age is rising,you should still apply for Social Security benefits three months before your 65th birthday.

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