Chapter 14

As you consider your retirement living expenses, remember to plan for _________

Blank 1: emergencies, emergency, or inflation

In order to set retirement goals, you need to ask several questions. Which of the following are relevant questions to help in goal setting?

Do you want to travel the world? Will you stop working, sit back, and relax? Do you want to start a second career?

Which of the following is not a question you should ask if your company offers a private employer pension plan?

How much of my benefits will the company keep when I retire?

True or false: The use of an emergency fund during retirement is for unexpected situations that arise.

True

Once your children become self-sufficient, you may consider _______(increasing/decreasing) your life insurance coverage.

decreasing Blank 1: decreasing

The 403(b) and 401(k) accounts are examples of employee retirement _______contribution plans

defined

A pension plan is a retirement plan that is funded, at least in part, by a(n) ________

employer

A(n) ________will probably be your most valuable asset in retirement, so it is important to consider carefully what size of payments you can afford.

Blank 1: house or home

During retirement, _________will probably cause your cost of living to increase.

Blank 1: inflation

The belief that you have plenty of time to start saving for retirement is a common _______ about the retirement years

Blank 1: myth, misconception, or mistake

When examining your _________plans, possibilities include travel, developing a hobby, and starting a second career.

Blank 1: retirement

Based on U.S. Bureau of Labor Statistics, which of the following is true?

Retired families spend a greater share of their income for food, housing, and medical care than nonretired families.

When saving for retirement, which of the following is NOT a good advice?

Saving early in small amounts is not as good as saving later in larger amounts.

Which of the following are myths about retirement planning?

There's plenty of time for me to start saving for retirement. Medicare will cover all my medical expenses. I can depend on Social Security and pension plan to pay my living expenses. Your pension benefits will increase to stay up with inflation.

In evaluating your investments in light of retirement, you are more interested in the income from investments to help cover living expenses instead of reinvesting them.

True

When planning for a successful retirement savings plan, one should determine the current financial situation.

True

Which of the following are myths about retirement planning?

Your pension benefits will increase to stay up with inflation. Medicare will cover all my medical expenses. There's plenty of time for me to start saving for retirement. I can depend on Social Security and pension plan to pay my living expenses.

The financial decisions related to housing as you try to maximize current income and prepare for retirement might include:

considering a smaller house that is less costly to maintain than a larger home. selling your home and buying a smaller less expensive home.

Your first step in retirement planning is to determine your current ______situation

financial

A(n) ________will probably be your most valuable asset in retirement, so it is important to consider carefully what size of payments you can afford

house

When you are ready to retire, you will likely want ____________(growth/income) investments since you will seek lower risk and more certain returns.

income

Retired families spend a ________(smaller/larger) share of their income on food, housing, and medical care than nonretired families.

larger

Expenses that may increase as a result of retirement include recreation, health insurance, and ________care.

medical Blank 1: medical or health

The belief that you have plenty of time to start saving for retirement is a common ___________________ about the retirement years

myth

Sources of retirement income include public _______plans, employer pension plans, personal retirement plans, and _________

pension annuities Blank 1: pension Blank 2: annuities or savings

Two strategies with regards to life insurance that may be employed to make retirement affordable involve reducing your _______________payments by decreasing your life insurance____________

premium payments by decreasing your life insurance coverage Blank 1: premium Blank 2: coverage or policy

One tip for saving for retirement is to keep your money in your former employer's retirement plan once you leave a job, or you can:

roll over the money into an IRA.

The financial decisions related to housing as you try to maximize current income and prepare for retirement might include:

selling your home and buying a smaller less expensive home. considering a smaller house that is less costly to maintain than a larger home.

The expenses that may be lower or eliminated during retirement include:

transportion, clothing, federal income taxes