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CH 18 -19
personal finance
| common misconceptions about retirement? | expenses will drop; retirement will only last 15yrs; depend on SS |
| retirement plan be updated once in a while | yes |
| how many years should you expect to spend in retirement | You can expect to spend about 16 to 30 years in retirement. |
| Be certain you don't let your 45th birthday roll by without a comprehensive retirement plan. | |
| At age 65, what is the average life expectancy of a man and 19 for a woman. | |
| Financial planning for retirement vitally important? | You can expect to live in retirement for many years.; Social Security and private pension may be insufficient to cover the cost of living. ; Inflation may diminish the purchasing power of your retirement savings. |
| You can determine your net worth by: | subtracting your liabilities from your assets. |
| -Reverse annuity mortgage | When a lender uses your house as collateral to buy an annuity for you from a life insurance company, |
| When you are nearing retirement, it is a good idea to: | decrease the face value of your life insurance. |
| In case of a divorce, division of pension benefits generally depends on the length of the marriage. | |
| following expenditures for retirees is likely to increase | health insurance; medical expenses |
| expenditures for retirees is likely to decrease | clothing expenses; federal income taxes |
| type of housing is designed to allow people to stay in their homes as they grow older? | universal design |
| When do you apply for Social Security? x | 3 months before you retire |
| Most employers' pension plans are defined-contribution or defined-benefit plans. | |
| employer retirement plan specifies the benefits promised to the employee at the normal retirement age? | defined-benefit plan |
| Keogh accounts and individual retirement accounts the two most popular personal retirement plans? | |
| His contributions are tax deductible | traditional IRA |
| His contributions are not tax deductible but earnings accumulate | Roth IRA |
| type of annuity is generally purchased by people of retirement age? | immediate annuity |
| Estate planning is a definite plan for the administration and disposition of one's property during one's lifetime and at one's death. | |
| A large percentage of people do little or nothing to provide for those who will survive them. | |
| Estate planning has two parts. The first part consists of: | building your estate through savings, investments, and insurance. |
| In estate planning, if you are married: | your situation becomes more complex, and the need for orderliness and clarity becomes greater. |
| Unmarried couples face formidable retirement and estate planning challenges. | |
| Intestate dies without writing a will. | |
| A will is assets be divided equally between his wife and his two sons. | |
| simple wills is called an | "I love you" will? simple will - |
| leaves one half of your adjusted gross estate to your spouse outright as a marital share? | traditional marital share will |
| type of will does everything pass to your spouse, with the exception of an amount equal to the exemption, which passes into trust? | exemption trust will |
| will should be written, dated, and signed entirely in your own handwriting? | holographic will |
| will is usually prepared with an attorney's assistance? | Formal Will |
| A person who will follow your instructions specified in your will is called a(n) | executor |
| document explains, adds, or deletes provisions in your existing will? | codicil |
| Probate is a legal procedure of proving a valid or invalid will. | |
| documentary agreement between spouses before marriage in which one or both parties often waive a right to receive property under the other's will or under state law | prenuptial agreement. |
| person who assumes the responsibilities of providing the children with personal care and managing the estate | Guardian |
| person or institution that holds or generally manages property for the benefit of someone else under a trust agreement | trustee |
| legal document authorizing someone to act on your behalf is called a: | power attorney |
| selected to receive the assets of his brother Kyle in the event of Kyle's death. | beneficiary |
| If you establish a(n) revocable trust, you retain the right to end the trust or change its terms | |
| If you establish a(n) irrevocable trust, you cannot change its terms or end it. | |
| Living trust is a property management arrangement that you establish while you are alive. | |
| trust established by your will that becomes effective upon your death is called a(n) testamentary trust. | |
| How many months after your death is the federal estate tax due and payable in cash? | 9 |
| An inheritance tax is levied on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person. | |
| The maximum tax rate on estates and gifts: | is gradually declining, but will increase dramatically in 2011 unless Congress intervenes. |
Created by:
mcarter06