Preparing for the Future Answers

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

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

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

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

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

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

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

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

In order to reduce the possibility that a technological paradigm shift will render your skills obsolete, you should ______.a.Encourage others to keep their skill sets currentb.Try to keep your company from adopting new technologyc.Keep tabs on the newest technical advancesd.Adopt a technology proof career, like carpentry