Chapter 18 – Starting Early: Retirement Planning
79. (p. 620) A Keogh plan is also called a self-employed retirement plan.
80. (p. 620) Keogh plans can be both defined-contribution and defined-benefit plans.
81. (p. 620) An annuity is a contract from an insurance company that can provide an income for
life.
82. (p. 620) You can only buy an annuity by making periodic payments.
Chapter 18 – Starting Early: Retirement Planning
83. (p. 620) The rate of return on annuities is rarely pegged to market rates.
84. (p. 620) Earned interest on annuities accumulates tax-free until the annuity payments begin.
85. (p. 620) Annuity payments may either be a fixed or a variable amount.
86. (p. 620) Immediate annuities are generally purchased by people of retirement age.
Chapter 18 – Starting Early: Retirement Planning
87. (p. 620) Immediate annuities provide income payments at once and are usually purchased
with a lump-sum payment.
88. (p. 621) The straight life annuity gives more income per dollar of outlay than any other type.
89. (p. 621) A joint-and-survivor annuity pays its installments until the death of the last
designated survivor.
90. (p. 621) With a fixed-dollar annuity, the money you pay is invested in common stocks or
other equities.
Chapter 18 – Starting Early: Retirement Planning
91. (p. 623) The first step in stretching your retirement income is to make sure you are receiving
all the income to which you are entitled.
92. (p. 623) Some retirees may need to file quarterly estimated income tax returns.
93. (p. 623) During retirement, as long as you do not earn more than the annually exempt
amount, your Social Security payments will not be affected.
94. (p. 623) To offset inflation, your retirement assets must earn enough to keep up with, and
even exceed, the rate of inflation.
Chapter 18 – Starting Early: Retirement Planning
95. (p. 594) For the average individual, which one of the following statements is most likely
correct regarding retirement?
96. (p. 594) Which one of the following is a true statement about retirement planning?
97. (p. 595) Which of the following is a true statement about retirement planning?
Chapter 18 – Starting Early: Retirement Planning
98. (p. 595) Which statement is most likely correct about retirement planning?
99. (p. 596) Your first step in retirement planning is to:
100. (p. 595) The people who are in the best position to save are:
Chapter 18 – Starting Early: Retirement Planning
101. (p. 595) Some retirement planning experts suggest that you start retirement planning while
you are:
102. (p. 595) Why is financial planning for retirement vitally important?
103. (p. 597) You can determine your net worth by:
Chapter 18 – Starting Early: Retirement Planning
104. (p. 598) When a lender uses your house as collateral to buy an annuity for you from a life
insurance company, it is called:
105. (p. 598) You can get a reverse mortgage annuity if:
106. (p. 599) During a divorce, pension benefits are generally divided between the spouses
primarily based on the:
Chapter 18 – Starting Early: Retirement Planning
107. (p. 599) In a marriage that lasts more than 15 years, there’s generally a ____________ split
of the marital assets.
108. (p. 600) Which statement is correct regarding retirement living expenses?
109. (p. 601) Which one of the following expenditures for retirees is most likely to increase?
110. (p. 600) Which one of the following expenditures for retirees is most likely to decrease?
111. (p. 600-601) Which one of the following expenditures for retirees is most likely to decrease?
112. (p. 604) Which type of housing is preferred by most persons who are approaching
retirement?
Chapter 18 – Starting Early: Retirement Planning
113. (p. 605) Which type of housing is designed to allow people to stay in their homes as they
grow older?
114. (p. 605) Which of the following is a tip from retirement specialists on how to uncover
115. (p. 606) Which one of the following is the most widely used source of retirement income?
Chapter 18 – Starting Early: Retirement Planning
116. (p. 611) Which employer retirement plan specifies the benefits promised to the employee at
the normal retirement age?
117. (p. 612) Which federal law sets minimum standards for pension plans in private industry
and protects more than 50 million workers?
118. (p. 615) What are the two most popular personal retirement plans?
Chapter 18 – Starting Early: Retirement Planning
119. (p. 623) Possible sources of income for many retirees include:
120. (p. 620) Which retirement plan is specifically designed for self-employed individuals and
their employees?
121. (p. 620) What type of annuity is generally purchased by people of retirement age?
Chapter 18 – Starting Early: Retirement Planning
122. (p. 621) An annuity in which you receive an income for the rest of your life, but no
payments are made to anyone after your death is called:
123. (p. 621) Which type of annuity gives more income per dollar of outlay than any other type?
124. (p. 623) Once you retire, the first step in stretching your retirement income is to make sure
Chapter 18 – Starting Early: Retirement Planning
125. (p. 624) Which one of the following is probably the best suggestion for stretching your
retirement income?
126. (p. 624) In respect to your federal income taxes, which one of the following may you have
to do during retirement, even if you did not have to do so prior to retiring? (Assume you have
both pre- and post-retirement income.)
127. (p. 624) Which one of the following is a disadvantage associated with Social Security
retirement income?