Preparing for the Future Answers

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Individual Retirement Accounts (IRAs) are very popular because ______.

A
They include a large variety of stock options
B
They are not taxed until retirement
C
They have very high rates of return
D
They have unlimited contribution potential
2
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As your income rises, _______.

A
Your taxes will stay about the same
B
The amount of taxes you pay increases
C
Your tax bracket will fall to a lower rate
D
None of the above
3

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 active
B
Requiring a high initial investment
C
Being taxed when invested and when withdrawn
D
Having to be tied to a fixed rate saving account
4

Which career choice could negatively impact your future health and wellness?

A
Choosing a manual labor job which strains your body
B
Choosing a white collar job with high pay and tons of stress
C
Choosing a sales job with the possibility of no retirement benefits
D
All of the above
5

Due to the necessity of living on a fixed income, many retirees find it difficult to _______.

A
Afford to keep their large homes
B
Maintain their old standard of living
C
Pay for unexpected expenses
D
All of the above
6

In order to buy most homes, you have to arrange an up front payment of a portion of the house value, called a ________.

A
Mortgage
B
Closing fee
C
Down payment
D
Utility cost
7

In which environment would you would be more likely to have home separated by acres of land and relative peace and quiet?

A
Urban
B
Suburban
C
Rural
D
None of these is more likely
8

Inflation makes it harder to buy things because _______.

A
It increases your tax burden to the government
B
It causes your money to have less value
C
It decreases the cost of goods and services
D
It leads to a excess of goods and services
9

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 old
B
They would receive only a partial benefit for as long as they collect Social Security
C
They have to complete 120 hours of community service each year until they reach 65 years old
D
They are given full benefits, but can only spend them on food and housing costs
10

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 current
B
Try to keep your company from adopting new technology
C
Keep tabs on the newest technical advances
D
Adopt a technology proof career, like carpentry

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