6. One of the biggest financial benefits of starting early to save for your retirement fund is related to: a. the increased cost of living. b. reduced expenses. c. inflation. d. compound interest. e. lower tax deductions. 7. The applicable exclusion amount from estate tax for 2018 was: a. $2,410,000. b. $5,430,000 c. $7,820,000 d. $11,180,000 e. $3,780,000 8. Lillian has a defined benefit plan that promises an annual retirement benefit based on 2% of her final 3-year average annual salary for each year of service. At retirement, Lillian has 15 years of service and had an average salary of $80,000 over the last 3 years. What is the amount of her annual benefit? a. $50,500 b. $0 c. $35,400 d. $65,000 e. $24,000 9. You have been offered an opportunity to buy shares of a collection of diversified securities. You will be investing in: a. bonds. b. mutual funds. c. common stocks. d. real estate. e. stock options. 10. Retirement planning starts with: a. setting retirement goals. b. determining the interest on income-earning assets. c. considering the longevity of the retiree. d. determining the size of the required nest egg. e. defining the investment program. 11. All mutual funds always charge a: a. redemption fee. b. management fee. c. fee on the sale of the shares. d. 12b-1 fee. e. transaction fee