Question 1

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

Accepted Answer

A)  Clothing expenses
B)  Insurance expenses
C)  Medical expenses
D)  Expenses for leisure activities
E)  Gifts and contributionsF) B) and D)
G) None of the above

Question 2

Although medical expenses vary from person to person,they tend to decrease with age.

Accepted Answer

A) True 
 B)False

Question 3

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 share of your income for food,housing,and medical care than non-retired families.
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 E)
G) A) and B)

Question 4

People born after 1928 need at least 60 quarters of coverage to qualify for Social Security benefits.

Accepted Answer

A) True 
 B)False

Question 5

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 D)
G) None of the above

Question 6

For the average individual,which one of the following statements is most likely correct regarding retirement?

Accepted Answer

A)  My costs of daily living will decrease significantly once I retire.
B)  I can only expect to live about ten years in retirement,so I don't need to save that much money.
C)  Once I retire,all my medical bills will be paid by Medicare.
D)  My employer's pension plan will provide sufficient income to meet all my retirement needs.
E)  I need to save whatever I can,even if it's a little bit,to help cover my retirement costs.F) A) and B)
G) B) and E)

Question 7

Why is financial planning for retirement critically important?

Accepted Answer

A)  You can expect to live in retirement up to 30 years.
B)  Social Security and your private pension may be insufficient to cover the cost of living.
C)  Inflation may diminish the purchasing power of your retirement savings.
D)  You can expect to live in retirement for a minimum of 16 years.
E)  All of the listed factors are critically important.F) A) and E)
G) A) and B)

Question 8

Your assets include everything you own that has value.

Accepted Answer

A) True 
 B)False

Question 9

Some retirement planning experts suggest that you start retirement planning while you are:

Accepted Answer

A)  in school.
B)  married.
C)  divorced.
D)  middle-aged.
E)  still employed.F) B) and C)
G) C) and E)

Question 10

Before you get a reverse mortgage of any kind,consider that:

Accepted Answer

A)  there are origination fees,closing costs,servicing fees,and mortgage insurance premiums
B)  interest rates may change over the life of the mortgage
C)  you are still responsible for property taxes,insurance,utilities,and maintenance expenses
D)  you may leave fewer or no assets for your heirs
E)  All of these should be considered.F) A) and E)
G) D) and E)

Question 11

According to the Social Security Administration,disabled workers represent 14% of those who receive Social Security benefits.

Accepted Answer

A) True 
 B)False

Question 12

Keogh plans can be defined-contribution plans or defined-benefit plans.

Accepted Answer

A) True 
 B)False

Question 13

According to the U.S.Bureau of Labor Statistics,the annual inflation rate in the United States was ________ percent in April 2018.

Accepted Answer

A)  1
B)  2.5
C)  3
D)  3.5
E)  4F) A) and B)
G) D) and E)

Question 14

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) D) and E)
G) A) and B)

Question 15

Which statement is most likely correct about retirement planning?

Accepted Answer

A)  Social Security is sufficient to cover your cost of living.
B)  Your employer's pension combined with your Social Security will cover your basic living 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 expenses will drop once you retire.F) A) and B)
G) A) and E)

Question 16

John Carpenter works as a manager of a retail store.His employer has been setting money aside for him each month in the amount of 7 percent of his monthly earnings.What type of retirement plan does John have?

Accepted Answer

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

Question 17

Jasmine Smith owns a condo worth $250,000,a car valued at $15,000,and miscellaneous assets worth $7,000.She owes $125,000 on the condo and $10,000 on the car and has no other debts.Her retirement account,in which she is fully vested,contains $28,000 in mutual funds.She was just insured with a $200,000 term life insurance policy.What are her total assets?

Accepted Answer

A)  $200,000
B)  $300,000
C)  $100,000
D)  $592,500
E)  $600,000F) D) and E)
G) A) and E)

Question 18

The first step in stretching your retirement income is to make sure you are receiving all of the income to which you are entitled.

Accepted Answer

A) True 
 B)False

Question 19

Most employer pension plans are either defined-contribution or defined-benefit plans.

Accepted Answer

A) True 
 B)False

Question 20

You can keep money in most retirement plans indefinitely.

Accepted Answer

A) True 
 B)False

Exam 18: Starting Early: Retirement Planning

According to the U.S.Bureau of Labor Statistics,the annual inflation rate in the United States was ________ percent in April 2018.

Correct Answer
verified

Some retirement planning experts suggest that you start retirement planning while you are:

Correct Answer
verified

Correct Answer
verified

According to the Social Security Administration,disabled workers represent 14% of those who receive Social Security benefits.

Correct Answer
verified

Correct Answer
verified

Before you get a reverse mortgage of any kind,consider that:

Correct Answer
verified

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

Correct Answer
verified

People born after 1928 need at least 60 quarters of coverage to qualify for Social Security benefits.

Correct Answer
verified

John Carpenter works as a manager of a retail store.His employer has been setting money aside for him each month in the amount of 7 percent of his monthly earnings.What type of retirement plan does John have?

Correct Answer
verified

Although medical expenses vary from person to person,they tend to decrease with age.

Correct Answer
verified

Why is financial planning for retirement critically important?

Correct Answer
verified

Which statement is correct regarding retirement living expenses?

Correct Answer
verified

For the average individual,which one of the following statements is most likely correct regarding retirement?

Correct Answer
verified

Which statement is most likely correct about retirement planning?

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

Your assets include everything you own that has value.

Correct Answer
verified

Keogh plans can be defined-contribution plans or defined-benefit plans.

Correct Answer
verified

The first step in stretching your retirement income is to make sure you are receiving all of the income to which you are entitled.

Correct Answer
verified

You can keep money in most retirement plans indefinitely.

Correct Answer
verified

Most employer pension plans are either defined-contribution or defined-benefit plans.

Correct Answer
verified

Exam 18: Starting Early: Retirement Planning

According to the U.S.Bureau of Labor Statistics,the annual inflation rate in the United States was ________ percent in April 2018.

Correct AnswerverifiedShow Answer

Some retirement planning experts suggest that you start retirement planning while you are:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to the Social Security Administration,disabled workers represent 14% of those who receive Social Security benefits.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Before you get a reverse mortgage of any kind,consider that:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

People born after 1928 need at least 60 quarters of coverage to qualify for Social Security benefits.

Correct AnswerverifiedShow Answer

John Carpenter works as a manager of a retail store.His employer has been setting money aside for him each month in the amount of 7 percent of his monthly earnings.What type of retirement plan does John have?

Correct AnswerverifiedShow Answer

Although medical expenses vary from person to person,they tend to decrease with age.

Correct AnswerverifiedShow Answer

Why is financial planning for retirement critically important?

Correct AnswerverifiedShow Answer

Which statement is correct regarding retirement living expenses?

Correct AnswerverifiedShow Answer

For the average individual,which one of the following statements is most likely correct regarding retirement?

Correct AnswerverifiedShow Answer

Which statement is most likely correct about retirement planning?

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

Your assets include everything you own that has value.

Correct AnswerverifiedShow Answer

Keogh plans can be defined-contribution plans or defined-benefit plans.

Correct AnswerverifiedShow Answer

The first step in stretching your retirement income is to make sure you are receiving all of the income to which you are entitled.

Correct AnswerverifiedShow Answer

You can keep money in most retirement plans indefinitely.

Correct AnswerverifiedShow Answer

Most employer pension plans are either defined-contribution or defined-benefit plans.

Correct AnswerverifiedShow Answer

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