BusinessU 7-5

A 401(k) is also called:

• a pension plan

• a defined benefit plan

• social security

• a defined contribution plan

A pension plan is also called:

• a defined benefit plan

• a defined pension plan

• a defined contribution plan

• a 401K plan

Creating a plan for retirement to meet desired future income goals, and allocating and investing the financial resources necessary to achieve the plan, is called:

• social security

• 401K planning

• retirement planning

• asset allocation

What type of retirement plan will some employers contribute matching funds towards?

• allocation plan

• 401K plan

• social security plan

• pension plan

A source of income provided by the federal government when you retire, primarily based on your total earnings throughout your career and your age when you start receiving benefit payments, is called:

• asset allocating

• a 401K plan

• social security

• retirement planning

The granting of money or ownership based on certain time milestones is called:

• protecting

• vesting

• planning

• allocating

Matching investments into various asset types in order to align with the goals of the retirement plan is called:

• asset protection

• asset allocation

• retirement planning

• vesting

When should you start planning for retirement aka financial independence?

• When you want to quit

• In 10 years

• At 18

• As soon as possible

What is an example of a defined contribution plan?

• a social security plan

• A 401K plan

• a protection plan

• a 405K plan

What is an example of a defined benefit plan?

• spending plan

• A pension plan

• 401K plan

• investing plan