Question 1

More than half of Americans ages 65 to 74 are still in the workforce.

Accepted Answer

A) True 
 B)False  True

Question 2

Once you retire,which of the following is true about drawing on your savings?

Accepted Answer

A)  Timing depends on your financial circumstances.
B)  Timing depends on your age.
C)  Timing depends on how much you want to leave to your heirs.
D)  You should do so with caution.
E)  All of these are true.F) C) and E)
G) A) and D)

Question 3

You can put your IRA funds in many kinds of investments,including stock,bonds,mutual funds,real estate,and U.S.-minted gold and silver coins.

Accepted Answer

A) True 
 B)False

Question 4

Saving now for the future requires tackling the trade-offs between spending and saving.

Accepted Answer

A) True 
 B)False

Question 5

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) All of the above

Question 6

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 E)
G) A) and D)

Question 7

Up to what percent of your Social Security benefits may be subject to federal income tax?

Accepted Answer

A)  10
B)  25
C)  50
D)  75
E)  85F) B) and E)
G) C) and E)

Question 8

Generally,the current value of your jewelry is not included in your assets.

Accepted Answer

A) True 
 B)False

Question 9

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) A) and B)
G) A) and C)

Question 10

Which of the following is a feature of an Education IRA?

Accepted Answer

A)  Can be used for elementary and secondary school costs
B)  Renamed the Coverdell Education Savings Account
C)  Annual contribution limit of $2,000 for each child
D)  Non-deductible contributions
E)  All of these are features of an Education IRA.F) B) and C)
G) A) and E)

Question 11

It is almost certain that your pension benefits will increase to keep pace with inflation.

Accepted Answer

A) True 
 B)False

Question 12

Your expenses for leisure activities will probably decrease during retirement.

Accepted Answer

A) True 
 B)False  False

Question 13

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

Accepted Answer

Reviewing your assets and liabilities is...

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which one of the following is not a typical characteristic of a defined benefit plan?

Accepted Answer

A)  Employer contributions
B)  Formula-based benefit
C)  Investments managed by plan officials
D)  Limited government-guaranteed benefit
E)  Employee required contributionsF) A) and E)
G) A) and C)

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

You can get a reverse mortgage annuity if:

Accepted Answer

A)  you are willing to sell your house immediately.
B)  you buy a new home and pay only a minimal down payment.
C)  your mortgage is largely or completely paid off.
D)  you owe more in monthly mortgage interest than the annuity amount.
E)  you are willing to allow your principal mortgage balance to increase monthly.F) A) and E)
G) C) and D)

Question 18

What types of expenses might increase during retirement?

Accepted Answer

Medical expenses,insurance,and expenses for leisure activities tend to increase with age.You will spend about the same on gifts and contributions,but these expenses will account for a larger percentage of your smaller income during retirement.

Question 19

According to the 2015 Trustees Report,Social Security is not sustainable over the long term at current benefit and tax rates.

Accepted Answer

A) True 
 B)False

Question 20

In a reverse annuity mortgage,a lender uses your house as collateral to buy an annuity for you from a life insurance company.

Accepted Answer

A) True 
 B)False

Exam 18: Starting Early: Retirement Planning

More than half of Americans ages 65 to 74 are still in the workforce.

Correct AnswerverifiedTrue

Once you retire,which of the following is true about drawing on your savings?

Correct AnswerverifiedShow Answer

You can put your IRA funds in many kinds of investments,including stock,bonds,mutual funds,real estate,and U.S.-minted gold and silver coins.

Correct AnswerverifiedShow Answer

Saving now for the future requires tackling the trade-offs between spending and saving.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Your first step in retirement planning is to:

Correct AnswerverifiedShow Answer

Up to what percent of your Social Security benefits may be subject to federal income tax?

Correct AnswerverifiedShow Answer

Generally,the current value of your jewelry is not 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 feature of an Education IRA?

Correct AnswerverifiedShow Answer

It is almost certain that your pension benefits will increase to keep pace with inflation.

Correct AnswerverifiedShow Answer

Your expenses for leisure activities will probably decrease during retirement.

Correct AnswerverifiedFalse

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

Correct AnswerverifiedReviewing your assets and liabilities is...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which one of the following is not a typical characteristic of a defined benefit plan?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

You can get a reverse mortgage annuity if:

Correct AnswerverifiedShow Answer

What types of expenses might increase during retirement?

Correct AnswerverifiedMedical expenses,insurance,and expenses for leisure activities tend to increase with age.You will spend about the same on gifts and contributions,but these expenses will account for a larger percentage of your smaller income during retirement.

According to the 2015 Trustees Report,Social Security is not sustainable over the long term at current benefit and tax rates.

Correct AnswerverifiedShow Answer

In a reverse annuity mortgage,a lender uses your house as collateral to buy an annuity for you from a life insurance company.

Correct AnswerverifiedShow Answer

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True

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False

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Reviewing your assets and liabilities is...
View Answer

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Correct Answer
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Correct Answer
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Medical expenses,insurance,and expenses for leisure activities tend to increase with age.You will spend about the same on gifts and contributions,but these expenses will account for a larger percentage of your smaller income during retirement.

Correct Answer
verified

Correct Answer
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