Preparing for the Future Answers

Due to the necessity of living on a fixed income, many retirees find it difficult to _______.a.Afford to keep their large homesb.Maintain their old standard of livingc.Pay for unexpected expensesd.All of the above

In order to buy most homes, you have to arrange an up front payment of a portion of the house value, called a ________.a.Mortgageb.Closing feec.Down paymentd.Utility cost

If you find out you’re going to have your job downsized, you should ________.a.Feel relieved that you are not going to be firedb.Buy new clothes for your new positionc.Review and reduce your future spendingd.Begin researching your company’s promotion procedures

Although buying a Certificate of Deposit can earn your higher returns than a regular savings account, it can have the negative side effect of _________.a.Needing frequent transfers to stay activeb.Requiring a high initial investmentc.Being taxed when invested and when withdrawnd.Having to be tied to a fixed rate saving account

As your income rises, _______.a.Your taxes will stay about the sameb.The amount of taxes you pay increasesc.Your tax bracket will fall to a lower rated.None of the above

What disadvantage would be experienced by a person applying for their Social Security benefits at age 62?a.They would be ineligible to receive benefits after they turn 85 years oldb.They would receive only a partial benefit for as long as they collect Social Securityc.They have to complete 120 hours of community service each year until they reach 65 years oldd.They are given full benefits, but can only spend them on food and housing costs

Which career choice could negatively impact your future health and wellness?a.Choosing a manual labor job which strains your bodyb.Choosing a white collar job with high pay and tons of stressc.Choosing a sales job with the possibility of no retirement benefitsd.All of the above

Although a money market account generally earns more interest than a savings account, it has the disadvantage of ____________.a.Requiring an investing partnerb.Not allowing withdrawals until age 30c.Not allowing withdrawals until age 60d.Requiring a minimum balance

For many Americans, the biggest purchase they will ever make will involve __________.a.Housingb.Clothesc.Vehiclesd.Food