Question 1

Which one of the following is the most widely used source of retirement income?

Accepted Answer

A)   IRAs
B)   Keogh plans
C)   Social Security
D)   Company pension plans
E)   Union pension plansF) A) and D)
G) A) and B)

Question 2

What types of expenses can be lowered or eliminated during retirement?

Accepted Answer

Work-related expenses, clothing expenses...

Question 3

Why is it important to review your assets and liabilities before your retirement?

Accepted Answer

Reviewing your assets and liab...

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Your work-related expenses, such as driving back and forth to work, will be lower or eliminated during retirement.

Accepted Answer

A) True 
 B)False

Question 7

The potential loss of buying power during inflation is what makes it so important to plan ahead for your retirement.

Accepted Answer

A) True 
 B)False

Question 8

During a divorce, pension benefits are generally divided between the spouses primarily based on the:

Accepted Answer

A)   length of the divorce period.
B)   life expectancies of each spouse.
C)   length of the marriage.
D)   current age of each spouse.
E)   living arrangements for the couple's children.F) A) and D)
G) B) and C)

Question 9

What type of annuity is generally purchased by people of retirement age?

Accepted Answer

A)   Deferred annuity
B)   Immediate annuity
C)   Single-premium deferred annuity
D)   Flexible-premium deferred annuity
E)   Keogh annuityF) B) and D)
G) D) and E)

Question 10

You can determine your net worth by:

Accepted Answer

A)   subtracting your assets from your liabilities.
B)   subtracting the value of your home from the mortgage balance.
C)   adding your liabilities and assets.
D)   subtracting your liabilities from your assets.
E)   adding the value of your home to that of your other assets.F) B) and E)
G) C) and D)

Question 11

You can borrow from your Roth IRA.

Accepted Answer

A) True 
 B)False

Question 12

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 B)
G) A) and C)

Question 13

Your first step in retirement planning is to:

Accepted Answer

A)   estimate your spending needs.
B)   analyze your current assets and liabilities.
C)   adjust your spending needs for inflation.
D)   evaluate your planned retirement income.
E)   determine if you'll have to work during retirement.F) A) and C)
G) None of the above

Question 14

Which type of annuity gives more income per dollar of outlay than any other type?

Accepted Answer

A)   Installment refund annuity
B)   Life annuity with installment certain
C)   Straight life annuity
D)   Keogh annuity
E)   Life with period certain annuityF) B) and E)
G) None of the above

Question 15

If your employer is a tax-exempt institution such as a hospital, university, or museum, the salary reduction plan is called a Section 403(b) plan.

Accepted Answer

A) True 
 B)False

Question 16

Which one of the following is a disadvantage associated with Social Security retirement income?

Accepted Answer

A)   Earned income partially offsets benefits
B)   Forced savings
C)   Portable from job to job
D)   Cost shared with employer
E)   Inflation-adjusted survivorship rightsF) B) and E)
G) D) and E)

Question 17

Which is correct with respect to life expectancy?

Accepted Answer

A)   Men have a long life expectancy than women at any age.
B)   There is no difference in life expectancy between men and women.
C)   Women have a longer life expectancy than men.
D)   There is no difference in life expectancy among racial groups in the U.S.
E)   None of these statements is correct.F) All of the above
G) B) and E)

Question 18

Your expenses for leisure activities will probably decrease during retirement.

Accepted Answer

A) True 
 B)False

Question 19

Rebecca Murphy is planning for her retirement. She has done some checking and thinks she will get about $1,025 a month from Social Security. She also thinks her pension plan will pay her about $1,125 per month. In addition, she has some personal retirement accounts that she thinks will pay her $500 per month. What step in the retirement planning process is Rebecca 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) B) and E)
G) A) and C)

Question 20

In respect to your federal income taxes, which one of the following may you have to do during retirement, even if you did not have to do so prior to retiring? (Assume you have both pre- and post-retirement income.)

Accepted Answer

A)   Report your dividend and interest income
B)   File an annual tax return no later than April 15
C)   File semi-annual tax returns in April and October
D)   File quarterly estimated tax returns
E)   File semi-annual reports listing all of your income sourcesF) D) and E)
G) B) and C)

Exam 18: Starting Early: Retirement Planning

Which one of the following is a disadvantage associated with Social Security retirement income?

Correct Answer
verified

What type of annuity is generally purchased by people of retirement age?

Correct Answer
verified

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

Correct Answer
verified

Why is it important to review your assets and liabilities before your retirement?

Correct Answer
verified
Reviewing your assets and liab...
View Answer

Which type of annuity gives more income per dollar of outlay than any other type?

Correct Answer
verified

What types of expenses can be lowered or eliminated during retirement?

Correct Answer
verified
Work-related expenses, clothing expenses...
View Answer

Correct Answer
verified

You can borrow from your Roth IRA.

Correct Answer
verified

Your first step in retirement planning is to:

Correct Answer
verified

Your work-related expenses, such as driving back and forth to work, will be lower or eliminated during retirement.

Correct Answer
verified

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

Correct Answer
verified

You can determine your net worth by:

Correct Answer
verified

If your employer is a tax-exempt institution such as a hospital, university, or museum, the salary reduction plan is called a Section 403(b) plan.

Correct Answer
verified

In respect to your federal income taxes, which one of the following may you have to do during retirement, even if you did not have to do so prior to retiring? (Assume you have both pre- and post-retirement income.)

Correct Answer
verified

Which is correct with respect to life expectancy?

Correct Answer
verified

Which one of the following is the most widely used source of retirement income?

Correct Answer
verified

Your expenses for leisure activities will probably decrease during retirement.

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

The potential loss of buying power during inflation is what makes it so important to plan ahead for your retirement.

Correct Answer
verified

During a divorce, pension benefits are generally divided between the spouses primarily based on the:

Correct Answer
verified

Exam 18: Starting Early: Retirement Planning

Which one of the following is a disadvantage associated with Social Security retirement income?

Correct AnswerverifiedShow Answer

What type of annuity is generally purchased by people of retirement age?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Why is it important to review your assets and liabilities before your retirement?

Correct AnswerverifiedReviewing your assets and liab...View AnswerShow Answer

Which type of annuity gives more income per dollar of outlay than any other type?

Correct AnswerverifiedShow Answer

What types of expenses can be lowered or eliminated during retirement?

Correct AnswerverifiedWork-related expenses, clothing expenses...View AnswerShow Answer

Correct AnswerverifiedShow Answer

You can borrow from your Roth IRA.

Correct AnswerverifiedShow Answer

Your first step in retirement planning is to:

Correct AnswerverifiedShow Answer

Your work-related expenses, such as driving back and forth to work, will be lower or eliminated during retirement.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

You can determine your net worth by:

Correct AnswerverifiedShow Answer

If your employer is a tax-exempt institution such as a hospital, university, or museum, the salary reduction plan is called a Section 403(b) plan.

Correct AnswerverifiedShow Answer

In respect to your federal income taxes, which one of the following may you have to do during retirement, even if you did not have to do so prior to retiring? (Assume you have both pre- and post-retirement income.)

Correct AnswerverifiedShow Answer

Which is correct with respect to life expectancy?

Correct AnswerverifiedShow Answer

Which one of the following is the most widely used source of retirement income?

Correct AnswerverifiedShow Answer

Your expenses for leisure activities will probably decrease during retirement.

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

The potential loss of buying power during inflation is what makes it so important to plan ahead for your retirement.

Correct AnswerverifiedShow Answer

During a divorce, pension benefits are generally divided between the spouses primarily based on the:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Reviewing your assets and liab...
View Answer

Correct Answer
verified

Correct Answer
verified
Work-related expenses, clothing expenses...
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
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified