Personal Finance Pt. 2 (Exam 4)

What are the two most popular personal retirement plans? Keogh accounts and individual retirement accounts
Janice Jacobs is planning for her retirement. She knows what assets and liabilities she has now and expects to have in the future. She knows what her spending patterns are likely to be and adjusted them for inflation. She also has identified all of her sources of income after she retires. Now she is sitting down and planning her income and expenses each month. After she has finished this plan, she knows that she has enough income to cover her expected expenses and still have $200 extra each month for emergencies and other unplanned activities. Even with inflation, she thinks she can sustain this plan for approximately 30 years. What step in the retirement planning process is Janice completing? Developing a balanced budget based in her retirement income
To stretch your income during retirement, you could: use your skills and time instead of your money.
Beverly Foster is planning for her retirement. She has determined that her car is worth $10,000, her home is worth $150,000, her personal belongings are worth $100,000 and her stocks and bonds are worth $300,000. She owes $50,000 on her home and $5000 on her car. What step in the retirement planning process is Beverly completing? Analyzing her current assets and liabilities
How many years can you expect to spend in retirement? (It Is NOT “10 to 12 years”)
Estate planning has two parts. The first part consists of: building your estate through savings, investments, and insurance.
Under what type of ownership is the property considered owned 50-50 for estate tax purposes and passed automatically to your spouse at your death? Joint tenants with the right of survivorship
Which employer pension plan has an individual account for each employee? Defined-contribution plan
Which of the following statements is correct regarding wills? Every adult needs a will.
A person who will follow your instructions specified in your will is called a(n): executor or executrix.
If you die without a valid will: the state’s law of descent and distribution becomes your will.
The maximum tax rate on estates and gifts: (It Is NOT “is gradually increasing.”)
A trust established by your will that becomes effective upon your death is called a(n) ____________ trust. testamentary
What is likely to be an individual’s single biggest asset? Their home
Which one of the following is the most widely used source of retirement income? Social Security OR Keogh plans
The second part of estate planning consists of: transferring your estate in the manner you have specified.
The people who are in the best position to save are: middle-aged.
Even though there is no one ideal will, today, which type of will is considered best by many attorneys? Exemption trust will
Which of the following wills leaves everything to your spouse? Simple will
Rebecca Murphy is planning for her retirement. She has done some checking and thinks she will get about $1025 a month from social security. She also thinks her pension plan at her work will pay her about $1125 per month. In addition, she has some personal retirement accounts that she thinks will pay her $500 per month. What step in the retirement planning process is Rebecca completing? Evaluating her planned retirement income

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