Retirement
What does IRA stand for?
A. Income Reduction Act
B. Income Removal Amount
C. Independent Rehab Account
D. Individual Retirement Arrangement
D. Individual Retirement Arrangement
"Don't put all your eggs in one basket" is an example of?
A. Investing
B. Saving
C. Diversification
D. Funding
C. Diversification
What is a tax?
A. Money collected from a government to pay for public needs like schools and roads
B. Money that the government pays to citizens to attract people to move to an area
C. Fees that government officials must pay when they are elected to an office
D. An extra charge for only certain items like fruits and vegetables to encourage people not to buy those items
A. Money collected from a government to pay for public needs like schools and roads
A legal document created to express how a person desires his or her property to be distributed at death
A. Will
B. Probate
C. Beneficiary
D. Estate
A. Will
Money paid to use someone else's money
A. Asset
B. Interest
C. Principal
D. Deposit
B. Interest
The rise in the average costs of goods/services over time
A. Inflation
D. Deflation
C. Interest
D. Shrinkflation
A. Inflation
What is the ticker symbol for Apple?
A. APL
B. APPLE
C. AP
D. AAPL
D. AAPL
When a portion of your paycheck goes to the state and federal government, this is a tax on your ___.
A. Property
B. Savings
C. Purchases
D. Income
D. Income
The person or entity you name on an account or asset to receive that possession after your passing
A. Receiver
B. Beneficiary
C. Descendant
D. Decedent
B. Beneficiary
What is the equation for net worth?
A. Liabilities - Assets
B. Assets - Liabilities
C. Shareholders Equity - Assets
D. Assets - Shareholders Equity
B. Assets - Liabilities
The approximate average Social Security benefit for a retiree
A. $1,000
B. $1,500
C. $2,000
D. $500
B. $1,500
What are the two major stock exchanges in the U.S.?
A. NYSE and NASDAQ
B. NYSE and S&P
C. TSE and LSE
D. HKSE and LSE
A. NYSE and NASDAQ
A type of retirement account where you pay taxes on the amount you put in, but don't have to pay taxes when you take the money out
A. IRA
B. 401(k)
C. Roth
D. 403(b)
C. Roth
Legal process in which the validity and authenticity of a will are determined
A. Litigation
B. Probate
C. Beneficiary
D. Jury
B. Probate
Average credit card balance in the U.S.
A. $2,100
B. $6,200
C. $10,500
D. $14,200
B. $6,200
The average savings amount at retirement
A. $313,000
B. $52,000
C. $163,000
D. $504,000
C. $163,000
Using the Rule of 72, how many years does it take to double your money if you earn 8%
A. 8 Years
B. 7 Years
C. 9 Years
D. 10 Years
C. 9 Years
What is the highest federal tax rate?
A. 33%
B. 37%
C. 40%
D. 42%
B. 37%
Joe owned a stock portfolio that he originally paid $450,000 for. The portfolio is now worth $1,000,000. When Joe dies and his beneficiaries sell the portfolio what amount will they be taxed on?
A. $1,000,000
B. $550,000
C. $450,000
D. $0
D. $0
What is the total credit card debt in the U.S.?
A. $930 Billion
B. $4 Billion
C. $760 Million
D. $1.2 Trillion
$930 Billion
Jeff is a participant in his company's 401(k) plan. The plan has a 2 to 6 year graduated vesting schedule. The current balance is $15,000, of which the employer contributed $5,000 and Jeff contributed $5,000. After 3 years with the company, Jeff is resigning. What amount of his 401(k) is Jeff permitted to take with him?
A. $10,500
B. $6,000
C. $10,000
D. $12,000
A. $10,500
If you have $10,000 in your account and you want it to grow to $50,000 in 9 years, what interest rate would you need to earn?
A. 19.58%
B. 15.30%
C. 12.12%
D. 13.75%
A. 19.58%
What effect does claiming the Section 179 deduction have on an asset's adjusted tax basis?
A. Partial expense with a reduced basis and not subject to recapture
B. Immediate expense of the total cost and a resulting basis of zero subject to recapture
C. Immediate expense of the total cost and a resulting basis of zero not subject to recapture
D. Any amount of expense not to exceed the total cost subject to income and Section 179 expense limits
C. Immediate expense of the total cost and a resulting basis of zero not subject to recapture
When Susan passed away, she owned these assets: a life insurance policy of $100,000 with a properly named beneficiary, a home valued at $450,000 held JTWROS, jewelry valued at $35,000, an IRA valued at $575,000 with named beneficiary, an irrevocable trust of $375,000 for the benefit of her granddaughter Reese, and a car valued at $8,000 held fee simple by Susan. Based on this information, what is the value of Susan's probate estate?
A. $43,000
B. $143,000
C. $0
D. $418,000
A. $43,000
Which of the following is NOT correct regarding umbrella insurance policies?
A. Policies often have 1 million minimum amount of coverage
B. Umbrella insurance is referred to as "excess liability coverage"
C. Umbrella insurance picks up where underlying coverages, such as life and disability insurance leave off
D. Policies tend to come in 1 million dollar increments
C. Umbrella insurance picks up where underlying coverages, such as life and disability insurance leave off