Question 1

Nancy Moore is planning for her retirement.She guesses that by the time she retires,her mortgage will be paid off on her home.She expects she will pay $600 a month on food and that her medical expenses will be $400 a month.She also estimates that she will spend $400 a month on things that she enjoys like traveling,going to concerts,reading and other similar activities.What step in the retirement planning process is Nancy 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) None of the above
G) B) and E)

Question 2

What happens to your Social Security income if you retire early at age 62 instead of 65?

Accepted Answer

A)  There is a temporary reduction of 5/9 of one percent for each month that you receive payments before age 65..
B)  There is a permanent reduction of 5/9 of one percent for each month that you receive payments before age 65.
C)  There is a temporary reduction of one percent for each year that you receive payments before age 65.
D)  There is a permanent reduction of one percent for each year that you receive payments before age 65.
E)  There is no impact on your Social Security income if you retire early.F) A) and D)
G) A) and C)

Question 3

What percent of the average worker's preretirement earnings is replaced by Social Security?

Accepted Answer

A)  25%
B)  40%
C)  50%
D)  70%
E)  90%F) B) and E)
G) B) and C)

Question 4

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 5

Which retirement plan is specifically designed for self-employed individuals and their employees?

Accepted Answer

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

Question 6

Which type of housing is designed to allow people to stay in their homes as they grow older and more frail?

Accepted Answer

A)  Two-story house
B)  Multi-story apartment complex
C)  Rooming house
D)  Universal design
E)  Rental unitF) A) and C)
G) C) and E)

Question 7

During retirement planning,you would need to estimate your monthly retirement expenses.Provide examples of monthly expenses that are fixed and monthly expenses that are variable.

Accepted Answer

Fixed Expenses: rent or mortgage payment...

Question 8

The contribution Billy Freniere's employer makes to his retirement plan depends on the profits of the company.What type of retirement plan does Billy have?

Accepted Answer

A)  Money-purchase pension plan
B)  Stock bonus plan
C)  Profit-sharing plan
D)  Salary reduction plan
E)  403(b)  planF) C) and D)
G) B) and E)

Question 9

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 D)
G) B) and C)

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

Question 11

Inflation increases the purchasing power of your retirement savings.

Accepted Answer

A) True 
 B)False

Question 12

You can create a "my Social Security" account if you are 18 or older and have a Social Security number,valid e-mail,and U.S.mail address.

Accepted Answer

A) True 
 B)False

Question 13

The time to begin saving is when you are young.

Accepted Answer

A) True 
 B)False

Question 14

Which statement is most likely correct about retirement planning?

Accepted Answer

A)  Social Security will cover most of your expenses.
B)  Your employer's pension combined with your Social Security will cover your retirement expenses.
C)  Most retirees don't need to worry about inflation.
D)  Your pension may remain constant and not keep pace with inflation.
E)  Your living costs will remain constant once you retire.F) B) and C)
G) All of the above

Question 15

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

Question 16

What are the possible sources of income for retirees?

Accepted Answer

Possible sources of income for retirees ...

Question 17

Social Security is a package of protection,providing retirement,survivors',and disability benefits.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  10-90
B)  30-70
C)  40-60
D)  50-50
E)  60-40F) B) and C)
G) B) and E)

Question 19

Which statement is correct regarding retirement living expenses?

Accepted Answer

A)  It is impossible to estimate your spending needs.
B)  Your spending patterns will probably not change.
C)  You'll use a smaller amount of money for food, housing, and medical care.
D)  The exact amount of money you'll need is impossible to predict.
E)  Work-related expenses, such as driving back and forth to work, tend to be higher during retirement.F) B) and C)
G) C) and D)

Question 20

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

Accepted Answer

A)  I should wait until at least age 45 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) C) and D)
G) A) and D)

Exam 18: Starting Early: Retirement Planning

Which retirement plan is specifically designed for self-employed individuals and their employees?

Correct Answer
verified

Which type of housing is designed to allow people to stay in their homes as they grow older and more frail?

Correct Answer
verified

What are the possible sources of income for retirees?

Correct Answer
verified
Possible sources of income for retirees ...
View Answer

Correct Answer
verified

What happens to your Social Security income if you retire early at age 62 instead of 65?

Correct Answer
verified

The contribution Billy Freniere's employer makes to his retirement plan depends on the profits of the company.What type of retirement plan does Billy have?

Correct Answer
verified

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

Correct Answer
verified

Social Security is a package of protection,providing retirement,survivors',and disability benefits.

Correct Answer
verified

The time to begin saving is when you are young.

Correct Answer
verified

Which statement is correct regarding retirement living expenses?

Correct Answer
verified

Inflation increases the purchasing power of your retirement savings.

Correct Answer
verified

You can create a "my Social Security" account if you are 18 or older and have a Social Security number,valid e-mail,and U.S.mail address.

Correct Answer
verified

What percent of the average worker's preretirement earnings is replaced by Social Security?

Correct Answer
verified

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

Correct Answer
verified

Which statement is most likely correct about retirement planning?

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

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

During retirement planning,you would need to estimate your monthly retirement expenses.Provide examples of monthly expenses that are fixed and monthly expenses that are variable.

Correct Answer
verified
Fixed Expenses: rent or mortgage payment...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified

Exam 18: Starting Early: Retirement Planning

Which retirement plan is specifically designed for self-employed individuals and their employees?

Correct AnswerverifiedShow Answer

Which type of housing is designed to allow people to stay in their homes as they grow older and more frail?

Correct AnswerverifiedShow Answer

What are the possible sources of income for retirees?

Correct AnswerverifiedPossible sources of income for retirees ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

What happens to your Social Security income if you retire early at age 62 instead of 65?

Correct AnswerverifiedShow Answer

The contribution Billy Freniere's employer makes to his retirement plan depends on the profits of the company.What type of retirement plan does Billy have?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Social Security is a package of protection,providing retirement,survivors',and disability benefits.

Correct AnswerverifiedShow Answer

The time to begin saving is when you are young.

Correct AnswerverifiedShow Answer

Which statement is correct regarding retirement living expenses?

Correct AnswerverifiedShow Answer

Inflation increases the purchasing power of your retirement savings.

Correct AnswerverifiedShow Answer

You can create a "my Social Security" account if you are 18 or older and have a Social Security number,valid e-mail,and U.S.mail address.

Correct AnswerverifiedShow Answer

What percent of the average worker's preretirement earnings is replaced by Social Security?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which statement is most likely correct about retirement planning?

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

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

During retirement planning,you would need to estimate your monthly retirement expenses.Provide examples of monthly expenses that are fixed and monthly expenses that are variable.

Correct AnswerverifiedFixed Expenses: rent or mortgage payment...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Possible sources of income for retirees ...
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

Correct Answer
verified
Fixed Expenses: rent or mortgage payment...
View Answer

Correct Answer
verified

Correct Answer
verified