Week 7 Quiz Flashcards
T/F:
It really makes little difference whether you start retirement savings at age 25 or at age 45.
False
T/F:
More than half of American adults don’t know how much money they will need in retirement.
True
T/F:
The current trend in retirement plans is toward contributory plans.
True
Retirement planning starts with:
setting retirement goals
One of the biggest financial benefits of starting early to save for your retirement fund is related to:
compound interest
An annual contribution of $3,000 to a retirement account that earns 6% will be worth approximately what amount in 20 years? (Round the answer to the nearest whole dollar.)
$110,357
Which of the following statements about obtaining Social Security benefits is NOT correct?
For full retirement benefits, workers today must be employed in a job covered by Social Security at least 40 consecutive quarters.
Elif has a defined benefit plan that promises an annual retirement benefit based on 2% of her final 3-year average annual salary for each year of service. At retirement, Elif has 15 years of service and had an average salary of $80,000 over the last 3 year. What is the amount of her annual benefit?
$24,000
Which type of retirement plan relates to the Self-Employed Individuals Retirement Act?
Keogh
T/F:
Estate planning requires the knowledge of wills, trusts, and taxes.
True
T/F:
The first step of the estate planning process is to list all assets and determine the ownership and value of your estate.
False
T/F:
A husband and wife may give a gift of $34,000 to a single donee and incur no tax.
True
A written and legally enforceable document expressing how a person’s property should be distributed on their death is known as a(n):
will
A document that precisely states the treatments a person wants if they become terminally ill is called a(n):
living will
Which of the following is an advantage of giving gifts?
Marital deduction allows gifts to be tax free.
