Question 1

You can depend on Social Security and your company pension to pay for your basic living expenses.

Accepted Answer

A) True 
 B)False

Question 2

Some experts suggest starting retirement planning while you are in school.

Accepted Answer

A) True 
 B)False

Question 3

In a Roth IRA, contributions are not tax-deductible, but earnings can accumulate tax free.

Accepted Answer

A) True 
 B)False

Question 4

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

Question 5

Whether or not you are covered by a pension plan, you can still make nondeductible IRA contributions.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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, 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) D) and E)
G) C) and D)

Question 8

People born after 1928 need at least how many quarters of coverage to qualify for Social Security benefits?

Accepted Answer

A)   20
B)   40
C)   60
D)   80
E)   100F) B) and E)
G) None of the above

Question 9

Social Security was originally intended to provide 100 percent of retirement income.

Accepted Answer

A) True 
 B)False

Question 10

Which one of the following is a true statement about retirement planning?

Accepted Answer

A)   I should wait until at least age 40 to start saving for retirement.
B)   My pension benefits will increase to keep pace with inflation.
C)   I should update my retirement plan periodically.
D)   My employer's health insurance plan will cover my medical expenses.
E)   Social Security will cover my medical expenses.F) A) and C)
G) D) and E)

Question 11

The current value of your life insurance and pensions are included in your assets.

Accepted Answer

A) True 
 B)False

Question 12

With a defined-contribution plan, the plan document specifies the benefits promised to the employee at the normal retirement age.

Accepted Answer

A) True 
 B)False

Question 13

Jeremiah Brown has been making contributions into an individual retirement account for his retirement. His contributions are not tax deductible but his earnings accumulate tax free. 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) B) and E)
G) A) and D)

Question 14

When should you apply for Social Security?

Accepted Answer

A)   3 months before you retire
B)   1 year before you retire
C)   1 year after you retire
D)   10 years before you retire
E)   On the day you retireF) B) and C)
G) A) and B)

Question 15

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

Accepted Answer

A) True 
 B)False

Exam 18: Starting Early: Retirement Planning

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

Correct Answer
verified

The current value of your life insurance and pensions are included in your assets.

Correct Answer
verified

People born after 1928 need at least how many quarters of coverage to qualify for Social Security benefits?

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

Some experts suggest starting retirement planning while you are in school.

Correct Answer
verified

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

Correct Answer
verified

In a Roth IRA, contributions are not tax-deductible, but earnings can accumulate tax free.

Correct Answer
verified

Social Security was originally intended to provide 100 percent of retirement income.

Correct Answer
verified

When should you apply for Social Security?

Correct Answer
verified

Whether or not you are covered by a pension plan, you can still make nondeductible IRA contributions.

Correct Answer
verified

Which one of the following is a true statement about retirement planning?

Correct Answer
verified

Jeremiah Brown has been making contributions into an individual retirement account for his retirement. His contributions are not tax deductible but his earnings accumulate tax free. What type of individual retirement account does he have?

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

With a defined-contribution plan, the plan document specifies the benefits promised to the employee at the normal retirement age.

Correct Answer
verified

You can depend on Social Security and your company pension to pay for your basic living expenses.

Correct Answer
verified

Exam 18: Starting Early: Retirement Planning

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

Correct AnswerverifiedShow Answer

The current value of your life insurance and pensions are included in your assets.

Correct AnswerverifiedShow Answer

People born after 1928 need at least how many quarters of coverage to qualify for Social Security benefits?

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

Some experts suggest starting retirement planning while you are in school.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In a Roth IRA, contributions are not tax-deductible, but earnings can accumulate tax free.

Correct AnswerverifiedShow Answer

Social Security was originally intended to provide 100 percent of retirement income.

Correct AnswerverifiedShow Answer

When should you apply for Social Security?

Correct AnswerverifiedShow Answer

Whether or not you are covered by a pension plan, you can still make nondeductible IRA contributions.

Correct AnswerverifiedShow Answer

Which one of the following is a true statement about retirement planning?

Correct AnswerverifiedShow Answer

Jeremiah Brown has been making contributions into an individual retirement account for his retirement. His contributions are not tax deductible but his earnings accumulate tax free. What type of individual retirement account does he have?

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

With a defined-contribution plan, the plan document specifies the benefits promised to the employee at the normal retirement age.

Correct AnswerverifiedShow Answer

You can depend on Social Security and your company pension to pay for your basic living expenses.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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