1307 FInal Exam Review

The best time to begin planning for retirement is at age 27.

• False

• True

Answer explanation

Never too early.

Annabelle works at Acme Cleaning Company. When she retires, her employer's health insurance plan and Medicare should cover all of her medical expenses.

• True

• False

Bruce and Christopher are both retiring from Best Conditioning Company. They both should have the same amount of money in their retirement funds regardless of the lifestyle they expect during retirement.

• True

• False

A good goal is to plan for one’s net worth to increase each year as one moves closer to retirement.

• False

• True

Housing and life insurance are so important to your retirement income that other investments can be ignored as you review your assets.

• False

• True

When Don retires, his transportation expenses will likely increase.

• True

• False

Because of the potential effect of inflation, individuals should underestimate the amount of money.

• False

• True

The four primary sources of retirement income are employer pension plans, personal retirement plans, annuities, and public pension plans.

• True

• False

A benefit of an employer pension plan is that taxes are eliminated.

• False

• True

An example of a defined-contribution plan is a stock bonus plan.

• True

• False