Planning/Strategies for Retirement
Jennifer is planning for retirement and is wondering how much she should have in her retirement accounts. Help her to apply the 4% rule to find out. Jennifer states she needs $25,000/yr. In addition to Social Security. How much should she have in her retirement accounts?
(9-1)
a. $500,000
b. $750,000
c. $625,000
d. $1,250,000
c. $625,000
A great place to build up wealth for retirement is a 401K or a Roth IRA. Gage has a 401K account and Grahm has a Roth IRA. Which one will have to pay taxes on the money taken from their account? (9-2)
a. Grahm
b. Gage
c. It depends if it is over the tax threshold
d. Both Gage & Grahm
b. Gage
Sally is planning her future retirement. What is the earliest age she could expect to begin receiving Social Security benefits? (9-3)
a. Age 67
b. Age 62
c. Age 65
d. Age 55
b. Age 62
When planning for retirement it is a good idea to start in your twenties. Financial advisors recommend how much of your income? (9-1)
a. 5% - 10%
b. 10% - 15%
c. 15% -20%
d. 20% - 25%
b. 10% - 15%
When would a Traditional IRA be most beneficial?
(9-2)
a. If tax rates are higher during retirement
b. If tax rates are higher while working
c. If tax rates remain unchanged
d. None of the above
b. If tax rates are higher while working
What age is considered full retirement for social security if they were born after 1960?
(9-3)
a. 60
b. 62
c. 65
d. 67
d. 67
Why is longevity a risk for retirement planning?
(9-1)
a. The market could decline by the time you retire
b. You could outlive your savings
c. Not keeping up with inflation
d. You may need to decrease your withdrawals in retirement
b. You could outlive your savings
What percentage range of income does social security typically provide to retirees?
(9-1)
a. 80-90%
b. 70-80%
c. 20-60%
d. 10-15%
c. 20-60%
What percentage of your wages does an employee pay for social security?
(9-3)
a. 12.4%
b. 10.0%
c. 6.2%
d. 3.1%
c. 6.2%
If you retire early and continue to work, you might have to pay back some of your social security payments.
a. True
b. False
a. True