Chp 14: Retirement Savings Flashcards
21 test answers
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T/F: self-employer workers pay twice as much for social security coverage compared to employed workers
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True
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the major mistake(s) people make in retirement planning is(are) . . .
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saving too little
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T/F: supplemental retirement plans are usually voluntary.
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True
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T/F: social security benefits alone can usually fund comfortable retirement.
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False
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annuities are administered by . . .
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life insurance companies
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the cost of an annuity varies with the . . .
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age of the annuitant at issue, age of the annuitant when payment begins, method of proceeds distribution, and sex of annuitant.
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when setting retirement goals you should consider . . .
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what you want to do in retirement, your expected standard of living, your proposed level of income, and special retirement activities and projects.
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the amount of money in your defined contribution retirement portfolio will depend on . . .
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the age at which you begin contribution, the amount of money you deposit each month, and the rate of return on your savings.
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T/F: individuals are being forced to assume more and more responsibility for their own retirement.
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True
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T/F: most people are too conservative when investing their retirement funds.
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True
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T/F: government assistance primarily social security, is the largest single source of income for the average retiree.
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True
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a Roth IRA . . .
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is funded with after tax dollars, allows interest or dividends to accrue tax free, permits you to withdraw your contribution at any time, and provides for tax-free earnings if you hold account 5 years and are 59.5 at withdraw.
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the need for retirement planning is increased by the uncertainties of . . .
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inflation, social security benefits, assets you hold, and your pension benefits.
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funds to finance social security comes from . . .
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compulsory contributions from employee, employer, and self employed
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the major financial benefits of beginning your retirement funding early is related to . . .
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increase cost of living
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the proceeds of a variable annuity are dependent on the . . .
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investment return
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T/F: if one is unsure about the facts needed to estimate retirement needs, it is better to do nothing for a few years.
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False
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