Question 1

Employees who were born in 1960 or later can receive full Social Security benefits beginning at age

Accepted Answer

A)   59½.
B)   62.
C)   65.
D)   67.
E)   70.F) All of the above
G) B) and D)

Question 2

If you have fully funded your 401(k) and profit-sharing plans,you may choose to enhance your retirement savings by using this plan that allows you to withdraw money from the account tax-free and penalty-free after five years.

Accepted Answer

A)   Annuity
B)   Keogh plan
C)   Roth IRA
D)   SEP plan
E)   Spousal IRAF) D) and E)
G) A) and E)

Question 3

What are three important things to consider when planning for retirement?

Accepted Answer

The following are all correct:
1.Saving ...

Question 4

The best time to begin planning for retirement is at age 27.

Accepted Answer

A) True 
 B)False

Question 5

A(n) ______ is the creator of a trust.

Accepted Answer

A)   beneficiary
B)   executor
C)   grantor
D)   guardian
E)   trusteeF) A) and E)
G) None of the above

Question 6

When you retire,you will probably spend more money on

Accepted Answer

A)   Clothing.
B)   Transportation.
C)   Taxes.
D)   Health insurance.
E)   All of these.F) B) and D)
G) All of the above

Question 7

Social Security

Accepted Answer

A)   Covers about 97% of all American workers.
B)   Offers full retirement benefits beginning at age 62.
C)   Provides benefits only for retirees.
D)   Provides 100% of retirement income for recipients.
E)   Was established in 1947.F) A) and B)
G) All of the above

Question 8

When an employer promises to set aside a certain amount of money for each employee each year,it has set up a

Accepted Answer

A)   Defined benefit plan.
B)   Money-purchase plan.
C)   Profit-sharing plan.
D)   Salary reduction plan.
E)   Stock bonus plan.F) A) and E)
G) A) and D)

Question 9

When planning for retirement,you should review

Accepted Answer

A)   Housing.
B)   Life insurance.
C)   Investments.
D)   Assets.
E)   All of these.F) A) and C)
G) None of the above

Question 10

If you have children and are writing your will,you need to do all of the following except

Accepted Answer

A)   Select a guardian.
B)   Write the will with the help of an attorney.
C)   Select an executor.
D)   Sign the will in front of two witnesses.
E)   Select beneficiaries.F) None of the above
G) B) and E)

Question 11

A power of attorney should handle the estate of a deceased person.

Accepted Answer

A) True 
 B)False

Question 12

Which retirement plan specifies the benefits you'll receive at retirement age based on your total earning and years on the job?

Accepted Answer

A)   Defined benefit plan.
B)   Money-purchase plan.
C)   Defined contribution plan.
D)   Profit-sharing plan.
E)   401(k)  plan.F) B) and C)
G) A) and B)

Question 13

Explain the importance of an executor and a guardian.

Accepted Answer

An executor is someone who is willing an...

Question 14

An individual can give away up to $13,000 per year before paying an inheritance tax to the IRS.

Accepted Answer

A) True 
 B)False

Question 15

When you retire,you will probably spend less money on

Accepted Answer

A)   Clothing.
B)   Health insurance.
C)   Medical care.
D)   Recreation.
E)   All of these.F) B) and C)
G) C) and D)

Question 16

If you are single,you should not have beneficiaries.

Accepted Answer

A) True 
 B)False

Question 17

When planning for retirement,

Accepted Answer

A)   A mortgage should not affect your financial planning.
B)   Investments should be evaluated to determine whether their income can help cover living expenses.
C)   Keeping your current, large house will be cheaper to maintain than a move to a smaller house.
D)   Life insurance should be avoided.
E)   All of these are true.F) D) and E)
G) C) and E)

Question 18

A holographic will is legal in all states.

Accepted Answer

A) True 
 B)False

Question 19

If a will is found to be invalid,the result is called in-probate.

Accepted Answer

A) True 
 B)False

Question 20

Only people who are retired can receive a benefit from Social Security.

Accepted Answer

A) True 
 B)False

Exam 14: Starting Early: Retirement and Estate Planning

A holographic will is legal in all states.

Correct AnswerverifiedShow Answer

The best time to begin planning for retirement is at age 27.

Correct AnswerverifiedShow Answer

If you are single,you should not have beneficiaries.

Correct AnswerverifiedShow Answer

A(n) ______ is the creator of a trust.

Correct AnswerverifiedShow Answer

An individual can give away up to $13,000 per year before paying an inheritance tax to the IRS.

Correct AnswerverifiedShow Answer

A power of attorney should handle the estate of a deceased person.

Correct AnswerverifiedShow Answer

When planning for retirement,you should review

Correct AnswerverifiedShow Answer

When you retire,you will probably spend less money on

Correct AnswerverifiedShow Answer

What are three important things to consider when planning for retirement?

Correct AnswerverifiedThe following are all correct:1.Saving ...View AnswerShow Answer

Employees who were born in 1960 or later can receive full Social Security benefits beginning at age

Correct AnswerverifiedShow Answer

When an employer promises to set aside a certain amount of money for each employee each year,it has set up a

Correct AnswerverifiedShow Answer

If you have fully funded your 401(k) and profit-sharing plans,you may choose to enhance your retirement savings by using this plan that allows you to withdraw money from the account tax-free and penalty-free after five years.

Correct AnswerverifiedShow Answer

Which retirement plan specifies the benefits you'll receive at retirement age based on your total earning and years on the job?

Correct AnswerverifiedShow Answer

Only people who are retired can receive a benefit from Social Security.

Correct AnswerverifiedShow Answer

When planning for retirement,

Correct AnswerverifiedShow Answer

If you have children and are writing your will,you need to do all of the following except

Correct AnswerverifiedShow Answer

If a will is found to be invalid,the result is called in-probate.

Correct AnswerverifiedShow Answer

Explain the importance of an executor and a guardian.

Correct AnswerverifiedAn executor is someone who is willing an...View AnswerShow Answer

Social Security

Correct AnswerverifiedShow Answer

When you retire,you will probably spend more money on

Correct AnswerverifiedShow Answer

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The following are all correct:
1.Saving ...
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An executor is someone who is willing an...
View Answer

Correct Answer
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Correct Answer
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