CH 20 - Introduction To Individual Retirement Planning

Question 1

What are the SIX items of the retirement ladder?

Answer 1

1. fiscal welfare/social assistance (NOT Social Security)
2. retirement plans
3. personal savings
4. Home Equity
5. part-time wages
6. inheritances

Question 2

The average retiree has unique ______, ______, and ______.

Answer 2

goals/objectives

starting times

and

financial resources

Question 3

“Holistic Planning” involves coordinating with other _______ and _______.

Answer 3

financial goals

professionals

Question 4

What are the THREE major roadblocks to retirement planning?

Answer 4

living on all income

unexpected expenses (education, injuries, sickness, lawsuits)

no or limited pension coverage

Question 5

What are the solutions to retirement planning roadblocks?

Answer 5

• save 10% and spend 90%
• fix any inadequate insurance coverage
• roll pension plans into other retirement vehicles

Question 6

The boomers were born from _______ to _______.

Answer 6

1946 to 1964

Question 7

Currently, baby-boomers are planning to _________ and _________.

Answer 7

• work longer
• care giving (e.g. children/grandchildren/parents)

Question 8

What is the expectation for future retirees and social security benefits?

Answer 8

It will be less important for retirement security than previous generations

Question 9

Pension coverage is greater for ________ employers.

A). small

B). medium

C). large

Answer 9

LARGE

Question 10

What are the SIX steps in the retirement planning process?

Answer 10

1. Establish client-planner relationships
2. Determine goals
3. Analyze and evaluate financial status
4. Develop and present the plan
5. Implement the plan
6. Monitor the plan