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Exam 18: Starting Early: Retirement Planning

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Question 41

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Beverly Foster is planning for her retirement.She has determined that her car is worth $10,000,her home is worth $150,000,her personal belongings are worth $100,000,and her stocks and bonds are worth $300,000.She owes $50,000 on her home and $5,000 on her car.What step in the retirement planning process is Beverly completing?

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 income

F) All of the above
G) None of the above

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Question 42

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Rebecca Murphy is planning for her retirement.She has done some checking and thinks she will get about $1,025 a month from Social Security.She also thinks her pension plan will pay her about $1,125 per month.In addition,she has some personal retirement accounts that she thinks will pay her $500 per month.What step in the retirement planning process is Rebecca completing?

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 income

F) B) and D)
G) B) and C)

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Question 43

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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?

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

Which is correct with respect to life expectancy?

What types of expenses can be lowered or eliminated during retirement?

If you work after age 65,your Social Security benefit will increase by one-fourth of one percent for each month you delay retirement up until what age?

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

Some retirees may need to file quarterly estimated income tax returns.

With a fixed-dollar annuity,the money you pay is invested in common stocks or other equities.

When settling a divorce case,the division of pension benefits generally depends on the length of the marriage.

Your contribution to a Traditional IRA is fully tax deductible regardless of your earned income.

Which employer retirement plan specifies the benefits promised to the employee at the normal retirement age?

You can only buy an annuity by making periodic payments.

Most employers' pension plans are either defined-contribution or defined-benefit plans.

During retirement,as long as you do not earn more than the annually exempt amount,your Social Security payments will not be affected.

Money-purchase pension plans,stock bonus plans,profit-sharing plans,401(k),403(b)plans,and Section 457 plans are often referred to as tax-sheltered annuity (TSA)plans.

Which one of the following expenditures for retirees is most likely to decrease?

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

You can put your IRA funds in many kinds of investments¾stock,bonds,mutual funds,real estate,and U.S.-minted gold and silver coins.