Chapter 9 Lesson 5 Review

What is the process of Retirement Planning primarily about?

• Deciding when to retire

• Figuring out how much money you'll need in retirement and creating a plan to get there

• Choosing the right retirement accounts

• Investing in stocks and bonds

Grace has invested in the stock market. What is a dividend?

What is the purpose of Estate Planning?

• To prepare for retirement income

• To manage an individual's assets after death

• To distribute dividends to shareholders

• To create a retirement account

What is a Will?

• A retirement account

• A type of investment return

• A legal document listing how a person wants their assets distributed after their death

• A plan for retirement income

At what age can people start taking Social Security payments, according to the text?

• 60

• 62

• 65

• 67

What percentage of your full monthly Social Security benefit will you receive if you start taking benefits at age 62?

• 50%

• 75%

• 100%

• It varies depending on the individual's work history

What is the full retirement age for someone born after 1960?

• 60

• 62

• 65

• 67

Why might someone receive a reduced Social Security benefit if they start taking it at age 62?

• Because they haven't worked long enough

• Because the full retirement age is 67

• Because they have other sources of income

• Because the Social Security fund is insufficient

At what age will you get 100% of the Social Security monthly benefit according to the text?

• At age 70

• At age 67

• At age 65

• At age 62

What percentage of your income from when you were working is meant to be replaced by Social Security benefits?

• About 25%

• About 40%

• About 50%

• About 75%