Preparing for the Future Answers

When your taxes have increased, you may be able to legally save money by _________.a.Hiding your income in offshore accountsb.Failing to file your tax returns on timec.Giving large money gifts to your spoused.Making itemized deductions on your return

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

Inflation makes it harder to buy things because _______.a.It increases your tax burden to the governmentb.It causes your money to have less valuec.It decreases the cost of goods and servicesd.It leads to a excess of goods and services

In which environment would you would be more likely to have home separated by acres of land and relative peace and quiet?a.Urbanb.Suburbanc.Rurald.None of these is more likely

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

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

Individual Retirement Accounts (IRAs) are very popular because ______.a.They include a large variety of stock optionsb.They are not taxed until retirementc.They have very high rates of returnd.They have unlimited contribution potential

In which environment would you would be more likely to have easy access to museums and fine arts?a.Urbanb.Suburbanc.Rurald.None of these is more likely to have museums and fine arts

A 401(k) account is very valuable because ______.a.Money contributed to a 401(k) is not taxedb.Each plan opens at a value of one million dollarsc.Your employer is required to match your investmentd.The employee can use the 401(k) money without penalties

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