Question 1

In estimating the future value of your retirement investments,you would consider all of the following except

Accepted Answer

The age at which your spouse will retire is not relevant to estimating the future value of your retirement investments. The other three factors (amount invested, annual return, and number of years invested) are all important considerations in determining the growth potential of your investments.

Question 2

A financial contract that will provide annual payments over either a specified time period or a person's lifetime is a(n)________.

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The answer of A financial contract that will provide annual...

Question 3

What would be the difference in the tax consequences of an $18,000 withdrawal from a Roth IRA versus a Traditional IRA if $15,000 represents long-term capital gains,$2,000 short-term capital gains,and $1,000 is interest? Assume a tax rate of 30 percent and a capital gains tax rate of 10 percent.
(a)$5,200 more in taxes with a Traditional IRA
(b)$4,800 more in taxes with a Traditional IRA
(c)$5,400 more in taxes with a Traditional IRA
(d)$5,400 more in taxes with a Roth IRA

Accepted Answer

The answer of What would be the difference in the...

Question 4

How much would need to be contributed each year for 30 years to accumulate $1,300,000 assuming a return on the investments of 8 percent? Round to the nearest dollar if needed.
(a)$43,333
(b)$46,800
(c)$11,476
(d)$15,000

Accepted Answer

The answer of How much would need to be contributed...

Question 5

List three sources of income when you retire.

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The answer of List three sources of income when you...

Question 6

How much could an individual earning $187,000 per year accumulate in a Keogh plan if they invested the maximum allowed for 20 years at a return of 9 percent? Round to the nearest dollar if needed.
(a)$2,148,678
(b)$2,391,683
(c)$840,000
(d)935,000

Accepted Answer

The answer of How much could an individual earning $187,000...

Question 7

For a retiree who anticipates living 30 years,can earn 8 percent on his/her investment and will require $25,000 per year,how much in retirement funds will s/he need on the date of retirement?
(a)$281,450
(b)$810,000
(c)$750,000
(d)$303,966

Accepted Answer

The answer of For a retiree who anticipates living 30...

Question 8

All of the following is good advice on retirement planning and savings except

Accepted Answer

It is not true that Social Security will provide enough retirement income on its own, so additional savings and investments are still necessary.

Question 9

If an employer matches contributions to a 401(k)up to a maximum of $1,800 (employer and employee each contribute $1,800)and an additional $2,200 is contributed by the employee,how much will the employee have in 35 years if the investments in the 401(k)earn an average of 9 percent?
(a)$152,600
(b)$203,000
(c)$1,251,089
(d)$776,538

Accepted Answer

The answer of If an employer matches contributions to a...

Question 10

What three factors do you need to calculate how much money you will accumulate by retirement?

Accepted Answer

The answer of What three factors do you need to...

Question 11

The fees charged by financial institutions for annuities may include all of the following except

Accepted Answer

No-load annuities do not charge any fees, while management fees, surrender charges, and insurance fees or commissions are all common fees charged by financial institutions for annuities.

Question 12

Describe two types of annuities.

Accepted Answer

The answer of Describe two types of annuities....

Quiz 19: Retirement Planning