1. Retirement Planning Test Review

2. True/False To keep from running low on money during retirement, you should first find a job to increase your income.

3. False

4. True/False To prevent running short of money during retirement, you should first rethink your retirement goals and lifestyle.

5. True

6. True/False If you have a retirement account, you cannot access the funds until you officially retire.

7. False

8. True/False If you have a retirement account, you can access the funds at any time, even though you pay a penalty to do so.

9. True

10. What is the risk that you have been tricked or deceived when making an investment?

11. Fraud Risk

12. What type of IRA is when the money invested is “after-tax” money? Hint: You pay the tax before placing the money in this IRA

13. Roth

14. What type of IRA is when the money invested is “before-tax” money? Hint: You pay taxes on this money when you take it out of the IRA.

15. Traditional

16. Asking yourself how much money I will need and how many years will I need it is one of the steps for?

17. Planning for Retirement

18. The greater the potential to gain higher earnings, the (greater/lesser) the risk.

19. greater

20. What is a company sponsored plan where you determine how to invest your money?

21. 401(k) plan

22. At what age are you required to start drawing income from your IRA?

23. 59 1/2

24. What are most IRAs invested in?

25. Mutual Funds

26. What is the highest percentage of income for people over the age of 65?

27. Social Security

28. What is the average amount of a Social Security check?

29. $1,000

30. What does IRA stand for?

31. Individual Retirement Account

32. True/False Only people who work for employers with retirement benefits can plan for retirement.

33. False

34. True/False All companies contribute to retirement accounts for their employees.

35. False

36. True/False Participating in company- sponsored accounts is mandatory in all situations.

37. False

38. True/False Even though participating in company-sponsored accounts is voluntary, it is something that all employees should do.

39. True

40. What can decrease your retirement funds?

41. Inflation

42. True/False The best way to protect yourself from fraud risk is to ask your friends for suggestions before investing.

43. False

44. True/False One of the best ways to protect yourself from fraud risk is to keep your money in a savings account at a local bank.

45. False

46. True/False One of the best ways to protect yourself from fraud risk is to invest only with reputable companies.

47. True

48. What is the potential risk that you will lose your money due to a company going bankrupt?

49. Financial Risk

50. True/False If your company has a retirement plan, you can wait until you are in your 40s to start participating without any costs.

51. False

52. True/False If your company has a retirement plan, you should sign up as soon as possible so your investment will start growing.

53. True

54. Annuities provide a _____ amount each month.

55. guaranteed

56. _____ is based on the earnings of the investment.

57. 401(k)

58. True/False People invest even though risk is involved because the potential to make money is greater than the risk of losing it.

59. True

60. What is a risk management strategy where you include a wide variety of investments within your portfolio?

61. Diversification

62. What type of risk is losing money instead of appreciating?

63. Market Risk

64. Social Security was originally designed to be a _____ income for people over the age of 65.

65. Supplemental

66. True/False Most people plan to work until they are 60 years of age.

67. False

68. True/False Most people plan to work more years than they actually do.

69. True

70. True/False When planning for retirement, you need to determine how much money you will need and how many years you will need it.

71. True

72. What is a statistical measure of the average life span of a specific population?

73. Life Expectancy

74. True/False When inflation occurs at a lower rate than you calculated, your retirement benefits could be less than expected.

75. False

76. True/False When your rate of return is lower than you had calculated, your retirement benefits could be less than expected.

77. True