Retirement & Estate Planning - Final Assessment

Which of the following is considered to be the standard retirement age in the United States?

• 55

• 60

• 65

• 70

What percentage of household budgets do people over the age 50 spend on housing?

• 25 to 30 percent

• 30 to 35 percent

• 35 to 40 percent

• 40 to 45 percent

What percentage of income do people in their 80s usually spend on health care?

• 10 percent

• 15 percent

• 20 percent

• 30 percent

Which of the following is a saving certificate with a fixed maturity date and specified fixed interest rate?

• IRA

• Saving account

• Certificate of Deposit

• 401(k)

Which of the following is a loan available to homeowners 62 years or older and allows them to convert part of the equity in their homes into cash?

• Reverse mortgage

• Fixed mortgage

• Adjustable mortgage

• Conventional mortgage

Which of the following is NOT a benefit of estate planning?

• Avoiding confusion when it comes to final wishes

• Ensuring children have the legal guardian of choice

• Protecting loved ones by ensuring they receive assets from the estate

• Maximizing taxes and legal expenses associated with the estate

Which of the following is a legal document in which the drafter outlines what to do with his or her property after death?

• Will

• Trust

• Probate

• Durable power of attorney

A drafter with a will is NOT able to do which of the following?

• Choose the executor of his estate

• Disinherit a spouse

• Distribute property to beneficiaries of his or her choosing

• Designate a guardian for minor children

Which of the following is usually created by the grantor during his or her lifetime through a transfer of property to a trustee?

• Living trust

• Testamentary trust

• Unfunded trust

• Revocable trust

Which of the following is a written document which specifies what types of medical treatment are desired should an individual become incapacitated?

• Health-care proxy

• Trust

• Living will

• Power of attorney