Question 1

Which one of the following is probably the best suggestion for stretching 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) A) and B)
G) A) and C)

Question 2

The Social Security office will require you to provide proof of your age.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Because of their actuarial aspects, defined-benefit plans tend to be more-complicated and more expensive to administer than defined-contribution plans.

Accepted Answer

A) True 
 B)False

Question 5

Vesting is your right to at least a portion of the benefits you have accrued under an employer pension plan.

Accepted Answer

A) True 
 B)False

Question 6

The full Social Security benefit for a spouse is what percent of the retired worker's full benefit?

Accepted Answer

A)   25
B)   40
C)   50
D)   65
E)   80F) A) and E)
G) A) and D)

Question 7

When settling a divorce case, the division of pension benefits generally depends on the length of the marriage.

Accepted Answer

A) True 
 B)False

Question 8

It is almost certain that your pension benefits will increase to keep pace with inflation.

Accepted Answer

A) True 
 B)False

Question 9

Which one of the following is not a typical characteristic of a defined benefit plan?

Accepted Answer

A)   Employer contributions
B)   Formula-based benefit
C)   Investments managed by plan officials
D)   Limited government-guaranteed benefit
E)   Employee required contributionsF) A) and D)
G) All of the above

Question 10

Keogh plans can be both defined-contribution and defined-benefit plans.

Accepted Answer

A) True 
 B)False

Question 11

What are the two most popular personal retirement plans?

Accepted Answer

A)   Keogh account and Social Security
B)   Social Security and Roth IRA Plus
C)   Keogh accounts and individual retirement accounts
D)   401(k)  and Social Security
E)   403(b)  and 401(k) F) B) and D)
G) A) and C)

Question 12

As people reach retirement age, what is the most likely housing choice they would make? Assume they are moving to a new geographic area.

Accepted Answer

A)   Split-level house with two sets of stairs
B)   100-year old house that needs lots of renovations
C)   House that is close to the city bus line
D)   House with 10 acres far out in the country
E)   Rental apartmentF) A) and B)
G) A) and C)

Question 13

If you think you want to live in another city during retirement, it's a good idea to plan vacations now in areas you might enjoy later.

Accepted Answer

A) True 
 B)False

Question 14

Karen Endicott is planning for her retirement. She knows that after she retires she will no longer need her own single family dwelling. She plans on buying a condominium in Chicago, close to the bus and train line and close to a grocery store. What step in the retirement planning process is Karen completing?

Accepted Answer

A)   Analyzing her current assets and liabilities
B)   Estimating her spending needs
C)   Evaluating her planned retirement income
D)   Evaluating her retirement housing
E)   Developing a balanced budget based on her retirement incomeF) A) and C)
G) A) and B)

Question 15

ERISA established the Pension Benefit Guaranty Corporation (PBGC).

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is considered a tax-sheltered annuity plan (TSA) ?

Accepted Answer

A)   401k plan
B)   Section 403b plan
C)   Section 457 plan
D)   Both Section 403b and Section 457 plans
E)   401k, Section 403b, and Section 457 plansF) B) and C)
G) A) and B)

Question 17

The straight life annuity gives more income per dollar of outlay than any other type.

Accepted Answer

A) True 
 B)False

Question 18

Ben Carmichael has been making contributions into an individual retirement account for his retirement. His contributions are tax deductible as his employer does not offer a retirement plan. What type of individual retirement account does he have?

Accepted Answer

A)   Traditional IRA
B)   Roth IRA
C)   Spousal IRA
D)   Coverdell Education Savings Account
E)   401(k) F) A) and E)
G) B) and C)

Question 19

You can get a reverse mortgage annuity if:

Accepted Answer

A)   you are willing to sell your house immediately.
B)   you buy a new home and pay only a minimal down payment.
C)   your mortgage is largely or completely paid off.
D)   you owe more in monthly mortgage interest than the annuity amount.
E)   you are willing to allow your principal mortgage balance to increase monthly.F) None of the above
G) A) and B)

Question 20

Your assets include everything you own that has value.

Accepted Answer

A) True 
 B)False

Exam 18: Starting Early: Retirement Planning

Vesting is your right to at least a portion of the benefits you have accrued under an employer pension plan.

Correct Answer
verified

If you think you want to live in another city during retirement, it's a good idea to plan vacations now in areas you might enjoy later.

Correct Answer
verified

When settling a divorce case, the division of pension benefits generally depends on the length of the marriage.

Correct Answer
verified

Your assets include everything you own that has value.

Correct Answer
verified

The straight life annuity gives more income per dollar of outlay than any other type.

Correct Answer
verified

ERISA established the Pension Benefit Guaranty Corporation (PBGC).

Correct Answer
verified

What are the two most popular personal retirement plans?

Correct Answer
verified

It is almost certain that your pension benefits will increase to keep pace with inflation.

Correct Answer
verified

Which of the following is considered a tax-sheltered annuity plan (TSA) ?

Correct Answer
verified

The Social Security office will require you to provide proof of your age.

Correct Answer
verified

As people reach retirement age, what is the most likely housing choice they would make? Assume they are moving to a new geographic area.

Correct Answer
verified

You can get a reverse mortgage annuity if:

Correct Answer
verified

Which one of the following is not a typical characteristic of a defined benefit plan?

Correct Answer
verified

Ben Carmichael has been making contributions into an individual retirement account for his retirement. His contributions are tax deductible as his employer does not offer a retirement plan. What type of individual retirement account does he have?

Correct Answer
verified

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

Correct Answer
verified

The full Social Security benefit for a spouse is what percent of the retired worker's full benefit?

Correct Answer
verified

Keogh plans can be both defined-contribution and defined-benefit plans.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Because of their actuarial aspects, defined-benefit plans tend to be more-complicated and more expensive to administer than defined-contribution plans.

Correct Answer
verified

Exam 18: Starting Early: Retirement Planning

Vesting is your right to at least a portion of the benefits you have accrued under an employer pension plan.

Correct AnswerverifiedShow Answer

If you think you want to live in another city during retirement, it's a good idea to plan vacations now in areas you might enjoy later.

Correct AnswerverifiedShow Answer

When settling a divorce case, the division of pension benefits generally depends on the length of the marriage.

Correct AnswerverifiedShow Answer

Your assets include everything you own that has value.

Correct AnswerverifiedShow Answer

The straight life annuity gives more income per dollar of outlay than any other type.

Correct AnswerverifiedShow Answer

ERISA established the Pension Benefit Guaranty Corporation (PBGC).

Correct AnswerverifiedShow Answer

What are the two most popular personal retirement plans?

Correct AnswerverifiedShow Answer

It is almost certain that your pension benefits will increase to keep pace with inflation.

Correct AnswerverifiedShow Answer

Which of the following is considered a tax-sheltered annuity plan (TSA) ?

Correct AnswerverifiedShow Answer

The Social Security office will require you to provide proof of your age.

Correct AnswerverifiedShow Answer

As people reach retirement age, what is the most likely housing choice they would make? Assume they are moving to a new geographic area.

Correct AnswerverifiedShow Answer

You can get a reverse mortgage annuity if:

Correct AnswerverifiedShow Answer

Which one of the following is not a typical characteristic of a defined benefit plan?

Correct AnswerverifiedShow Answer

Ben Carmichael has been making contributions into an individual retirement account for his retirement. His contributions are tax deductible as his employer does not offer a retirement plan. What type of individual retirement account does he have?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The full Social Security benefit for a spouse is what percent of the retired worker's full benefit?

Correct AnswerverifiedShow Answer

Keogh plans can be both defined-contribution and defined-benefit plans.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Because of their actuarial aspects, defined-benefit plans tend to be more-complicated and more expensive to administer than defined-contribution plans.

Correct AnswerverifiedShow Answer

Correct Answer
verified

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