Review

Question 1

age + consequences

you can claim retirement benefits from SSA as soon as

Answer 1

62
* but you will only receive 75% of full benefits

Question 2

age + consequences

you can claim full benefits

Answer 2

67
* you receive 100% of your benefit, even if you are still working

Question 3

consequences

you wait and claim your benefits at age 70

Answer 3

you receive 8% percent more in benefts per year than you would have received at your full retirement age

Question 4

recommendend multiple of savings

• age 30
• age 35
• age 40
• age 45
• age 50
• age 55
• age 60
• age 67

Answer 4

• age 30 - 1
• age 35 - 2
• age 40 - 3
• age 45 - 4
• age 50 - 6
• age 55 - 7
• age 60 - 8
• age 67 - 10

Question 5

Concept

a powerful tool which combats nonparticipation in employer-sponsored retirement plans

Answer 5

automatic enrollment

Question 6

age groups

target-date funds are targeted at these people

Answer 6

individuals in their
* 20s
* 30s
* 40s
* 50s

Question 7

Concept

automatic escalation addresses these risks

Answer 7

• inflation
• cost of living increases

Question 8

Which action can be taken to accomplish these goals?

An individual is transferring to a new job but currently has a 401(k) with the previous employer. The individual wants to avoid immediate taxes and have more flexibility to invest in individual stocks and ETFs
* relocation the 401(k) account balance into a brokerage account
* receiving the 401(k) account balance as a lump sum distribution
* rolling the 401(k) account balance into an IRA account
* placing the 401(k) account balance into a health savings account

Answer 8

Rolling the 401(k) account balance into an IRA account

Question 9

which action can adult children take to help their elderly parent

An elderly parent has become medically incapacitated. THeir adult chilidren do not consider it safe for them to live alone, make medical decisions, or manage their finances.
* seeking legal guardianship
* creating an advance health directive
* filling out a living trust
* obtaining trusteeship

Answer 9

seeking legal guardianship
* There is no trust in place yet per the questions, so obtaining trusteeship is not possible
* you cannot create a living trust after the fact; one should have already been established
* advance directives should have been created before the incapacitation

Question 10

who makes the contributions

457 plans

Answer 10

Only employees, not employers make contributions