7.2 Planning for Retirement Lesson

7.2 Planning for Retirement Lesson

Open Ended

Why do you think a young person should begin planning for retirement now?

Multiple Choice

What is the benefit of saving for retirement from a early-age?

• You have more time to learn what it is.

• You have more time for your money to grow.

• There is not a benefit.

Multiple Choice

What are the three main categories for retirement plans?

• Employer-sponsored, personal retirement plans (IRAs), and governmental pension plans

• 401k, 403b, 801

• Short term, pension, social security

Multiple Choice

What aspects of a person’s financial situation should be considered when planning for retirement?

• Housing

• Living expenses

• Health care

• Working while retired

• All of the above

Multiple Choice

A(n) _________ is a legal document that states a person’s wishes for his or

her estate after death.

• will

• power of attorney

• trust

Multiple Choice

Which legal document gives a person the power to act for another person regarding financial and legal matters?

• probate

• will

• power of attorney

• trust

Multiple Choice

Which of the following is not accomplished in a will?

• Name an executor.

• Name power of attorney.

• Name a guardian.

• Name beneficiaries.

Multiple Choice

The person who receives the deceased persons assets is called the ___________ of the will.

• beneficiary

• trustee

• codicil

Multiple Choice

Person or institution named to manage assets on behalf of the beneficiaries.

• beneficiary

• trustee

• codicil

Multiple Choice

______________ is a legal process of settling the affairs of an estate.

• estate

• trust

• probate

Multiple Choice

An arrangement through which a person transfers assets to a trustee, who then oversees and manages the

assets on behalf of the beneficiaries, is a(n) __________.

• estate

• trust

• probate

Multiple Choice

Which type of trust is set up under the terms of a person’s will and becomes effective upon death?

• living trust

• testamentary trust

• irrevocable trust

• revocable trust

Multiple Choice

Which type of trust is one in which the terms can be changed or ended?

• living trust

• testamentary trust

• irrevocable trust

• revocable trust