Question 1

The law exempts Social Security benefits from federal income taxes.

Accepted Answer

A) True 
 B)False

Question 2

Your mortgage,car payments,credit card balances,and taxes due are all examples of your liabilities.

Accepted Answer

A) True 
 B)False

Question 3

You can depend on your employer's health insurance plan and Medicare to pay all your medical expenses when you retire.

Accepted Answer

A) True 
 B)False

Question 4

If you are a government employee,you may have a Section 457 plan.

Accepted Answer

A) True 
 B)False

Question 5

What is most likely to be an individual's single biggest asset?

Accepted Answer

A)  automobile
B)  jewelry
C)  bank account
D)  home
E)  furnitureF) A) and D)
G) A) and C)

Question 6

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) C) and E)
G) None of the above

Question 7

The rate of return on annuities is rarely pegged to market rates.

Accepted Answer

A) True 
 B)False

Question 8

The Employee Retirement Income Security Act of 1974 (ERISA)sets minimum standards for pension plans in private industry.

Accepted Answer

A) True 
 B)False

Question 9

How can retirees avoid housing traps?

Accepted Answer

Retirees can avoid housing traps by writ...

Question 10

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 B)
G) B) and E)

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Janice Jacobs is planning for her retirement.She knows what assets and liabilities she has now and expects to have in the future.She knows what her spending patterns are likely to be and adjusted them for inflation.She also has identified all of her sources of income after she retires.Now she is sitting down and planning her income and expenses each month.After she has finished this plan,she knows that she has enough income to cover her expected expenses and still have $200 extra each month for emergencies and other unplanned activities.Even with inflation,she thinks she can sustain this plan for approximately 30 years.What step in the retirement planning process is Janice completing?

Accepted Answer

A)  analyzing her current assets and liabilities
B)  estimating her spending needs
C)  evaluating her planned retirement income
D)  increasing her retirement income
E)  developing a balanced budget based on her retirement incomeF) All of the above
G) B) and C)

Question 14

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

Accepted Answer

A)  You can expect to spend about 16 to 30 years in retirement.
B)  It's never too early to begin planning for retirement.
C)  You should not let your 45th birthday roll by without a comprehensive retirement plan.
D)  Retirement planning has both emotional and financial components.
E)  All of the other statements are truE.F) D) and E)
G) A) and E)

Question 15

Once you retire,the first step in stretching your retirement income is to make sure that you are:

Accepted Answer

A)  contributing to Social Security.
B)  covered by an employer pension plan.
C)  contributing to a 401(k) plan.
D)  saving funds in an IRA.
E)  receiving all of the income to which you are entitled.F) A) and B)
G) D) and E)

Question 16

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 D)
G) None of the above

Question 17

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

Accepted Answer

A)  an obverse annuity mortgage.
B)  a reverse annuity mortgage.
C)  mortgage life insurance.
D)  a level-premium annuity.
E)  whole life insurancE.F) B) and D)
G) C) and D)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Contributions to a SEP-IRA,which may vary from year to year,are tax deductible and earnings accumulate on a tax-deferred basis.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is typically a characteristic of a defined contribution plan?

Accepted Answer

A)  employer-guaranteed retirement benefit
B)  no employee contributions
C)  no federal guarantee of benefits
D)  retirement benefit computed based on an age,wage,and years of service formula
E)  benefit options limited to lifetime annuityF) B) and D)
G) A) and E)

Exam 18: Starting Early: Retirement Planning

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

Correct Answer
verified

The law exempts Social Security benefits from federal income taxes.

Correct Answer
verified

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

Correct Answer
verified

The Employee Retirement Income Security Act of 1974 (ERISA)sets minimum standards for pension plans in private industry.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

What is most likely to be an individual's single biggest asset?

Correct Answer
verified

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

Correct Answer
verified

Your mortgage,car payments,credit card balances,and taxes due are all examples of your liabilities.

Correct Answer
verified

Which of the following is typically a characteristic of a defined contribution plan?

Correct Answer
verified

Contributions to a SEP-IRA,which may vary from year to year,are tax deductible and earnings accumulate on a tax-deferred basis.

Correct Answer
verified

Your first step in retirement planning is to:

Correct Answer
verified

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

Correct Answer
verified

If you are a government employee,you may have a Section 457 plan.

Correct Answer
verified

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

Correct Answer
verified

You can depend on your employer's health insurance plan and Medicare to pay all your medical expenses when you retire.

Correct Answer
verified

The rate of return on annuities is rarely pegged to market rates.

Correct Answer
verified

How can retirees avoid housing traps?

Correct Answer
verified
Retirees can avoid housing traps by writ...
View Answer

Once you retire,the first step in stretching your retirement income is to make sure that you are:

Correct Answer
verified

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

Correct Answer
verified

Exam 18: Starting Early: Retirement Planning

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

Correct AnswerverifiedShow Answer

The law exempts Social Security benefits from federal income taxes.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Employee Retirement Income Security Act of 1974 (ERISA)sets minimum standards for pension plans in private industry.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is most likely to be an individual's single biggest asset?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Your mortgage,car payments,credit card balances,and taxes due are all examples of your liabilities.

Correct AnswerverifiedShow Answer

Which of the following is typically a characteristic of a defined contribution plan?

Correct AnswerverifiedShow Answer

Contributions to a SEP-IRA,which may vary from year to year,are tax deductible and earnings accumulate on a tax-deferred basis.

Correct AnswerverifiedShow Answer

Your first step in retirement planning is to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If you are a government employee,you may have a Section 457 plan.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

You can depend on your employer's health insurance plan and Medicare to pay all your medical expenses when you retire.

Correct AnswerverifiedShow Answer

The rate of return on annuities is rarely pegged to market rates.

Correct AnswerverifiedShow Answer

How can retirees avoid housing traps?

Correct AnswerverifiedRetirees can avoid housing traps by writ...View AnswerShow Answer

Once you retire,the first step in stretching your retirement income is to make sure that you are:

Correct AnswerverifiedShow Answer

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

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
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Retirees can avoid housing traps by writ...
View Answer

Correct Answer
verified

Correct Answer
verified