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If your employer offers a matching contribution in the company retirement plan




1);If your employer offers a matching contribution in the company retirement plan, what action;should you take?;a. Save as much as the company is willing to match.;b. Review the plan's investment choices and if they are not strong, choose not to;contribute.;c. Noneyour employer will automatically enroll you in the retirement savings;plan.;d. Save at least half of what the employer will match in your retirement plan.;2);To calculate accurately the size of your future retirement nest egg, you should;a. assume that your money will grow at the rate that stocks have averaged over;that past 40 years;b. assume that you will not do better than the average investor, and make up for;that by investing more money;c. base your calculations on a rate of return of 6% or more;d. base your calculations on a conservative rate of return of 6% or less a year;3);What does the term matching contribution refer to?;a. The percentage of your pay that you put into a workplace retirement plan;b. A contribution an employer makes to an employee's defined-contribution plan;that is based on the employee's own contributions to the plan;c. A contribution an employer makes to an employee's retirement plan that is;based on the length of time the employee has been with the company;d. An end-of-year bonus an employer makes to an employee's defined-benefit plan;4);Which of the following should you look for when choosing a financial advisor?;a. A Certified Financial Planner with at least 15 years of experience;b. Someone who recently became a Certified Financial Planner and is therefore;up-to-date on recent changes in tax law;c. A Certified Financial Planner who earns commissions;d. A fee-based financial advisor who specializes in insurance, taxes, and estate;planning;5);Which of the following accurately defines the term compound growth?;a. A fee paid for the use of another person's money;b. A process in which interest is added both to the principal and to any interest;already earned;c. A strategy whereby an investor seeks out stocks with strong growth potential;d. Growth measured in terms of inflation;6);What is the most important contributor to successful retirement planning?;a. Time: the sooner you start the better;b. The kind of retirement account that you usei.e., tax free versus tax deferred;c. A company match;d. The professional you hire to manage your money;7);Starting to save at a younger age is most beneficial to your retirement planning because of;what process?;a. Dollar cost averaging;b. Diversification;c. Compound growth;d. Inflation;8);With a Roth IRA, at what age are you are required to begin withdrawing money?;a. At age 70;b. Never You can die without ever having withdrawn a penny from it and pass it;income-tax free to your heirs.;c. When you begin receiving Social Security payments;d. At age 59 1/2;9);A retirement plan that allows you to withdraw your contributions at any time regardless of;age without incurring taxes or a tax penalty is;a.;b.;c.;d.;A 401(k) plan;A Roth IRA;A 403(b) plan;A traditional IRA;10);the;A 401(k) plan, 403-b plan, Thrift Savings plan, and 457 plan are all examples of which of;following plan types?;a. Defined-contribution plans;b. Defined-benefit plans;c. College savings plans;d. Taxable investment plans;11);Money in a 401(k) and traditional IRA grows in what way;a. Tax-free;b. Tax-exempt;c. Tax-deferred;d. Taxable;12);Investing in the stock market is a good way to meet which of the following savings goals?;a. A vacation next summer;b. A new car in three years;c. College in 15 years;d. A down payment on a house in four years;13);To calculate the size of your future retirement nest egg, you should base your calculations;on a rate of return of what percentage? ________% or more;a. 2;b. 4;c. 6;d. 8;14) If you do not have enough money today to begin investing in your companys matching;401(k) plan, what should you do?;a. Wait until your next raise and then begin investing the amount of your raise in;your 401(k) while you are paying off your debt.;b. Wait five or ten years until you have paid off student loans and other debts and;then begin saving twice as much for retirement.;c. Find ways to trim your expenses to free up money that you can begin paying;into your 401(k) now.;d. Plan to work into your 80s or later.;15);If you leave your job and you have a 401(k) plan with your old employer, you should;a. leave it where it is as long as you have under $5000 in the plan and are;comfortable with the investments;b. cash out the account and use the money to pay down credit card debt;c. have the money sent directly to you and then put that money in an IRA rollover;d. have the money transferred directly from your old plan custodian to a new IRA;rollover custodian


Paper#29929 | Written in 18-Jul-2015

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