Reference no: EM133053491

1. Which of the following is the second step of the retirement planning process? 

a. Become knowledgeable about retirement structures. 

b. Develop goals. 

c. Familiarize yourself with retirement issues. 

d. Analyze retirement risks. 

e. None of the choices are correct.

2. Which of the following categories are more likely to favor a later Social Security payout date? 

a. Women 

b. Men. 

c. None of the choices are correct. 

d. People in low marginal tax brackets 

e. Those in weak health

3. Typically the most attractive place to save for retirement is a qualified pension, with one exception. What is that exception? 

a. None of the choices are correct. 

b. The purchase of a home 

c. Social Security 

d. The purchase of a charitable annuity 

e. Private investment in mutual funds

4. The percentage of the elderly population is expected to: 

a. Fall from 21 percent in 2010 to 15 percent in 2040 

b. Rise from 13 percent in 2010 to 20 percent in 2040 

c. Rise from 7 percent in 2010 to 25 percent in 2040 

d. Fall from 25 percent in 2010 to 5 percent in 2040 

e. None of the choices are correct.

5. Pensions are best defined as: 

a. Tax-deductible retirement investments 

b. The way through which the government supports the elderly 

c. Savings structures into which money is deposited to generate income for retirees 

d. None of the choices are correct. 

e. Equity investments offered to state government employees.

6. Which of the following is not an advantage of a mutual fund versus a variable annuity?

a. Higher total expense ratios and a redemption charge for annuities 

b. All of these are advantages of a mutual fund versus a variable annuity 

c. Favorable capital gains rates on equity fund, appreciation, and dividends 

d. None of these are advantage of a mutual fund versus a variable annuity 

e. Limitation on investment choice for annuities

7. Which of the following is not type of risk associated with planning for retirement? 

a. Inflation risk. 

b. All of these are types of risk associated with planning for retirement. 

c. Health risk.

d. Longevity risk. 

e. Investment risk.

8. Which of the following is a disadvantage of company pension plans and Social Security? 

a. The absence of an option to draw down the money earlier than the scheduled date of payment and the inability to transfer this asset to others at death 

b. The inability to transfer this asset to others at death 

c. The absence of an option to draw down the money earlier than the scheduled date of payment 

d. Level payments that are not subject to market fluctuations 

e. The inability to transfer this asset to others at death and level payments that are not subject to market fluctuations

9. Which of the following is not a common risk factor that incorporated by financial planners when performing post-retirement planning? 

a. None of these are common risk factor when performing post-retirement planning 

b. Health difficulties forces retirement at an earlier age than expected 

c. All of these are common risk factors when performing post-retirement planning 

d. Investment returns proved lower than expected 

e. Planning for retirement was not done in a logical, structured way

10. Which of the following best defines heath risk as it pertains to financial matters? 

a. The possibility of large unreimbursable costs and the possibility of poor health following retirement 

b. The possibility of small unreimbursable costs and the possibility of poor health following retirement 

c. The possibility of large unreimbursable costs 

d. The possibility of poor health following retirement 

e. The possibility of small unreimbursable costs