Which employer pension plan has an individual account for each employee?

Question 3 options:

Undefined-contribution plan

Defined-contribution plan

Defined-benefit plan

Undefined-benefit plan

SaveQuestion 4(5 points)

Which one of the following is the most widely used source of retirement income?

Question 4 options:

Social Security

IRAs

Keogh plans

company pension plans

SaveQuestion 5(5 points)

Under what type of ownership is the property considered owned 50-50 for estate tax purposes and passed automatically to your spouse at your death?

Question 5 options:

Tenancy by the entirety

Joint tenants with the right of survivorship

Tenants in common

Tenancy by default

SaveQuestion 6(5 points)

The maximum tax rate on estates and gifts:

Question 6 options:

is gradually increasing.

has increased sharply.

has remained constant.

is gradually declining.

SaveQuestion 7(5 points)

What are the two most popular personal retirement plans?

Question 7 options:

Keogh accounts and individual retirement accounts

Social Security and Roth IRA Plus

Keogh account and Social Security

401(k) and Social Security

SaveQuestion 8(5 points)

A trust established by your will that becomes effective upon your death is called a(n) ____________ trust.

Question 8 options:

living

revocable

irrevocable

testamentary

SaveQuestion 9(5 points)

How many years can you expect to spend in retirement?

Question 9 options:

6 to 10 years

12 to 16 years

from 16 to 25 years

10 to 12 years

SaveQuestion 10(5 points)

The second part of estate planning consists of:

Question 10 options:

transferring your estate in the manner you have specified.

evaluating your assets and liabilities.

deciding who should be your attorney.

building your estate through savings.

SaveQuestion 11(5 points)

Estate planning has two parts. The first part consists of:

Question 11 options:

transferring your estate in the manner you have specified.

building your estate through savings, investments, and insurance.

deciding who is going to get what.

evaluating your assets and liabilities.

SaveQuestion 12(5 points)

Beverly Foster is planning for her retirement. She has determined that her car is worth $10,000, her home is worth $150,000, her personal belongings are worth $100,000 and her stocks and bonds are worth $300,000. She owes $50,000 on her home and $5000 on her car. What step in the retirement planning process is Beverly completing?

Question 12 options:

Analyzing her current assets and liabilities

Estimating her spending needs

Developing a balanced budget based on her retirement income

Evaluating her planned retirement income

SaveQuestion 13(5 points)

Rebecca Murphy is planning for her retirement. She has done some checking and thinks she will get about $1025 a month from social security. She also thinks her pension plan at her work will pay her about $1125 per month. In addition, she has some personal retirement accounts that she thinks will pay her $500 per month. What step in the retirement planning process is Rebecca completing?

Question 13 options:

Evaluating her planned retirement income

Estimating her spending needs

Developing a balanced budget based on her retirement income

Analyzing her current assets and liabilities

SaveQuestion 14(5 points)

To stretch your income during retirement, you could:

Question 14 options:

use your skills and time instead of your money.

skip leisure activities.

cut your food expenditures.

cancel your life and property insurance.

SaveQuestion 15(5 points)

A person who will follow your instructions specified in your will is called a(n):

Question 15 options:

witness.

trustor.

beneficiary.

executor or executrix.

SaveQuestion 16(5 points)

Which of the following wills leaves everything to your spouse?

Question 16 options:

Exemption trust will

Simple will

Stated dollar amount will

Traditional marital share will

SaveQuestion 17(5 points)

If you die without a valid will:

Question 17 options:

the federal court decides how the property should be distributed.

your relatives or friends will get the property.

the IRS confiscates your property.

the state's law of descent and distribution becomes your will.

SaveQuestion 18(5 points)

Even though there is no one ideal will, today, which type of will is considered best by many attorneys?

Question 18 options:

Exemption trust will

Traditional marital share will

Stated dollar amount will

Simple will

SaveQuestion 19(5 points)

Which of the following statements is correct regarding wills?

Question 19 options:

Only the rich with a considerable estate needs a will.

Only senior citizens need a will.

Only married people with dependents need a will.

Every adult needs a will.

SaveQuestion 20(5 points)

The people who are in the best position to save are:

Question 20 options:

teenagers.

young adults in their 20s.

middle-aged.

elderly.