Financial Planning Courses: Retirement

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1.
Which retirement plan is paid for by taxes on your earnings as opposed to you making contributions to it?
Choose wisely. There is only one correct answer.
Social Security. Social Security is a national program that is paid for through special taxes on workers' earnings.
2.
Why would a 60-year-old feel more urgency about planning for retirement than a 20-year-old would?
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A 60-year-old has less time to build up a nest egg. This is what creates the sense of urgency.
3.
If you determine that your retirement resources will not meet your anticipated needs, what is the "least" effective remedy for the problem?
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Plan to retire earlier. The earlier you retire, the greater the strain on your resources. Either plan to retire later or start building your income resources.
4.
Social Security benefits are based on _______.
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Average lifetime earnings. Social Security benefits are based on average lifetime earnings and the amount of time you've worked.
5.
All of us face the risk that we will not be able to live independently when we are older. There are many ways to handle the costs of this risk. A particular type of insurance that can help pay for these costs is called _______.
Choose wisely. There is only one correct answer.
Long-term care insurance. Long-term care insurance is a special form of insurance that covers the costs of care over many years.