1. What are the disadvantages of an ESOP retirement plan?

2. Burt Reynolds has changed jobs- His last retirement plan's contributions depended on how well the company performed and he shared in the earnings- His present employer allows him ownership in the firm, although this is the riskiest plan- Burt's former plan was a(n) ________ and his current plan is a(n) ________.

3. Under a defined-contribution plan, your employer alone or you and your employer together contribute directly to an individual account set aside specifically for you.

4. You have determined that you will need to accumulate $1,000,000 in your retirement account in order to cover your inflation-adjusted shortfall- Which of the following is closest to the amount of money you would need to put into a tax-deferred retirement account every year if you plan on retiring in 40 years? Assume an 8% average return on this account, and that it is empty today.

5. Why have many companies switched from traditional defined-benefits plans to cash-balance plans?

6. If you have a defined-benefit retirement plan through your place of employment, you are considered a(n) ________; and as such, there is an income limit after which your IRA contributions are no longer tax deductible.

7. Of the tax-favored retirement plans for the self-employed and small business employee, one is limited to $52,000 of annual contributions per person- It is the ________ plan.

8. The difference between a Money Purchase Plan and a Profit Sharing plan is that

9. You and your spouse both have good retirement plans through work and you both receive good Social Security checks based on your own incomes- If your goal is to maximize the size of your annuity check every month, which option should you choose?

10. June and Ward Cleaver are married- June works as an accountant and contributes to a 401(k) plan at work- Ward is a web page designer and works for himself from their home- What type of retirement plan would be an option for Ward?

11. A ________ option provides payments over the life of both you and your spouse no matter how long you live.

12. Rihab just got a new job and wants to roll over her retirement account from her previous job at a large corporation into an IRA- Which of the following is true?

13. ________ of workers feel confident they will have enough money to live comfortably in retirement, only ________ have actually tried to calculate how much they will need when in retirement.

14. One of the advantages to a traditional IRA is that it allows you to make a penalty -free withdrawal to purchase your first home.

15. Since the 2000s, the average personal savings rate in the U.S- has decreased.

16. Retirement income comes from which of the following sources?

17. A(n) ________ is a tax-deferred retirement plan that is essentially the same as a 401(k) plan, except that it is aimed at employees of schools and charitable organizations.

18. Which of the following benefits is not provided by Social Security?

19. The main advantage of the Roth IRA over the traditional IRA is the employer matching funds.

20. Contributions to a traditional IRA are always tax deductible.

21. Like many Americans you know that you must plan your retirement funds carefully because there may be a discrepancy between the funds that you will need to survive on during retirement and the income that you will have available during retirement- What will likely be the relationship between fund needs and income available during retirement for MOST Americans?

22. If you are self-employed or work for a small business which of the following retirement plans would you be most likely to have?

23. By law, everyone must contribute the maximum amount into their 401(k) plans at work.

24. Why have employers switched to defined-contribution plans instead of defined-benefits plans for most companies?

25. When is rolling your lump-sum retirement benefits into an IRA a good financial decision?