FP 101 Week 7 Quiz

Complete the Week 7 Quiz provided by your facilitator.

Submit your Week 7 Quiz as a Microsoft® Word®attachment to the Assignment Files tab.

Week Seven

1. If you start a new job and are offered the opportunity to participate in the company’s 401(k) or 403(b) retirement plan, which of the following decisions can affect your financial future?
2. Participating in the retirement account to reduce income taxes
3. Participating in the retirement account to take advantage of the employer’s matching contributions
4. Basing your actual choice of investments on your age, how long before you retire, and your tolerance for risk
5. All of these decisions would have a financial impact.

2. When thinking about retirement, which of the following is most accurate?
3. You’ll spend less when you retire.
4. Saving just a little bit won’t help.
5. You can depend on Social Security and a company pension plan to pay your basic living expenses.
6. The earlier you start saving, the better.

3. When planning for retirement
4. A mortgage should not affect your financial planning.
5. Investments should be evaluated to determine whether their income can help cover living expenses.
6. Keeping your current, large house will be cheaper to maintain than to move to a smaller house.
7. Life insurance should be avoided.

4. When planning for retirement, inflation
5. Decreases through retirement
6. Can be ignored since it will have little effect on retirement funding
7. Should be considered since income received earlier in retirement will buy more than the same amount received later in retirement
8. Should be recognized since it will increase the value of income received in retirement

5. Employees who were born in 1960 or later can receive full Social Security benefits beginning at what age?
6. 59 ½
7. 62
8. 67
9. 70

6. Jacob is updating his estate planning and wants to set up the legal document to leave everything to his wife. He is writing a(n)
7. Guardian will
8. Simple will
9. Stated amount will
10. Traditional marital will

7. Intestate is
8. The process of validating a will
9. A written will
10. A type of trust
11. Dying without a valid will

8. A legal arrangement that helps manage the assets of your estate for your benefit or that of your beneficiaries is called a
9. Formal will
10. Trust
11. Guardian
12. Holographic will

9. A(n) ______________ allows you to end the trust or change its terms during your lifetime.
10. Living will
11. Power of attorney
12. Revocable trust
13. Will

10. What is the difference between a will and a living will?
11. A will is used to distribute your property after your death; a living will allows you to specify, in writing, your health care preferences for the time when you no longer have the capacity to provide consent.
12. A living will terminates if you become incompetent, while a will continues in force even if you become incapacitated.
13. A will describes your preferences regarding treatment if you are faced with a serious accident or illness; a living will specifies what physicians are allowed to treat you.
14. A living will appoints someone to act on your behalf in financial or medical matters; a will specifies how your assets will be distributed on your death.