In a marriage that lasts more than 15 years, there's generally a ___ split of the marital assets
50/50
Ben Carmichael has been making contributions into an individual retirement account for his retirement. His contributions are tax deductible. What type of individual retirement account does he have?
Traditional IRA
The people who are in the best position to save are
middle-aged
When a lender uses the borrower's house as collateral to buy an annuity for the borrower from a life insurance company, it is called:
A reverse annuity mortgage
Which one of the following expenditures for retirees may increase?
Medical expenses
Which type of housing is preferred by most persons who are approaching retirement?
Present home
Stock bonus plans, profit-sharing plans, and 401(k) pension plans are examples of a
defined-contribution plan
During a divorce, division of pensions generally depends on the
length of the marriage
Which type of housing is designed to allow people to stay in their homes as they grow older?
Universal design
One of the following is not an advantage of the Social Security retirement income
Earned income partially offsets benefits
When do you apply for Social Security?
3 months before you retire
Sarah Logan's employer makes nontaxable contributions to a plan in her name and reduces her taxable income by the same amount. What type of retirement plan does Sara have?
Salary reduction plan or 401k
Be certain you don't let your ___ birthday roll by without a comprehensive retirement plan
45th
Why is financial planning for retirement critical?
You can expect to live in retirement for many years
Social Security and private pension may be insufficient to cover the cost of living
Inflation may diminish the purchasing power of your retirement savings
Which retirement plan is specifically designed for self-employed individuals and their employees?
Keogh plan
Possible sources of income for many retirees include
Social Security
Other public pension plans
Employer pension plans
Personal retirement plans and annuities
Jeremiah Brown has been making contributions into an individual retirement account for his retirement. His contributions are not tax deductible but earnings accumulate tax free. What type of individual retirement account does he have?
Roth IRA
Which one of the following expenditures for retirees is likely to decrease?
Clothing
Federal Income Taxes
Work Expenses
Housing Expenses
Which one(s) of the following are misconceptions about retirement planning?
My expenses will drop when I retire
My retirement will last only 15 years
I can depend on Social Security income
I can depend on my company pension
Your first step in retirement planning is to
analyze your current assets and liabilities