Finance 335: Conference: (due Thursday) · Discuss the role social security might play in a retirement plan.  Or choose an unusual aspect about social security strategies. (150 words) · Determining how much one needs to retire and how to meet that need is a complex task.  Come up with a hypothetical person and discuss their needs and considerations in determining how to meet those needs.   Considerations include, retirement lifestyle, leaving an estate, family demographics, pensions, social security, risk tolerance for investments, life insurance, and retirement plans such as 401k, IRA, Keogh etc.  Your example might also include a family business. Your methodology might include retirement calculators, rules of thumb, replacement income, or your own logical approach, I have attached an article on one type of rule of thumb in Course Content for the week (200 words) Quiz: (due Friday) Finance 430: http://www.coursesmart.com/9780538477116/HEOA-1 Username and password will be given upon agreement (due Thursday) · Please answer the Selt-Test questions in Chapter 1, p.6 and p.22. Chapter 5, answers the following Easy Problems, page 173, 5-1, 5-2, 5-3 and 5-5, you must show your calculations. Your answers do not need to be overly long, at the same time one short sentence is porbably not sifficient. FINC355 Professor Goohs – Retirement and Estate Planning Quiz 1 NAME ____________________________ Due Date: June 8, 2014 (in assignment folder) Please provide name above and provide answers in the chart below and submitting homework in MS Word in assignment folder for Quiz 1. (I’ll deduct points if you don’t). Problem Answer Example A 1 21 2 22 3 23 4 24 5 25 6 26 7 27 8 28 9 29 10 30 11 31 12 32 13 33 14 34 15 35 16 36 17 37 18 38 19 39 20 40 1. Which of the following types of defined contribution plans are commonly used to help employers maximize benefits for older employees? (1) fixed formula age-weighted (2) 401(k) (3) cross-tested (4) stock bonus A. (1) and (3) only B. (2) and (3) only C. (3) and (4) only D. (2) (3) and (4) 2. Bob D. Builder, owner of Bob’s Construction, would like to offer a retirement plan that would help reduce turnover. Bob should consider using a(n) A. 401(k) plan B. profit sharing plan C. savings plan D. age-weighted plan E. defined benefit plan 3. Looking beyond pure capital accumulation needs, which of the following is a primary capital needs planning objective? A. determining pension plan income benefits B. identifying retirement cash flow C. accounting for income from future savings D. translating capital into living expense needs 4. Which of the following is not an acceptable method for overcoming a retirement shortfall? A. cut back on expenses before retirement B. invest a large portion of a retirement portfolio in a high-risk investment to obtain a higher return C. increase pre-retirement savings D. retire later E. tap into home equity 5. Cathy Atwater i ...

1. Finance 335:
Conference: (due Thursday)
· Discuss the role social security might play in a retirement
plan. Or choose an unusual aspect about social security
strategies. (150 words)
· Determining how much one needs to retire and how to meet
that need is a complex task. Come up with a hypothetical
person and discuss their needs and considerations in
determining how to meet those needs. Considerations include,
retirement lifestyle, leaving an estate, family demographics,
pensions, social security, risk tolerance for investments, life
insurance, and retirement plans such as 401k, IRA, Keogh etc.
Your example might also include a family business. Your
methodology might include retirement calculators, rules of
thumb, replacement income, or your own logical approach, I
have attached an article on one type of rule of thumb in Course
Content for the week (200 words)
Quiz: (due Friday)
Finance 430:
http://www.coursesmart.com/9780538477116/HEOA-1
Username and password will be given upon agreement
(due Thursday)
· Please answer the Selt-Test questions in Chapter 1, p.6 and
p.22. Chapter 5, answers the following Easy Problems, page
173, 5-1, 5-2, 5-3 and 5-5, you must show your calculations.
Your answers do not need to be overly long, at the same time
one short sentence is porbably not sifficient.
FINC355 Professor Goohs – Retirement and Estate Planning
Quiz 1

2. NAME ____________________________ Due Date: June
8, 2014 (in assignment folder)
Please provide name above and provide answers in the chart
below and submitting homework in MS Word in assignment
folder for Quiz 1. (I’ll deduct points if you don’t).
Problem
Answer
Example
A
1
21
2
22
3
23
4
24
5
25
6

3. 26
7
27
8
28
9
29
10
30
11
31
12
32
13
33
14
34
15

4. 35
16
36
17
37
18
38
19
39
20
40
1.
Which of the following types of defined contribution plans are
commonly used to help employers maximize benefits for older
employees?
(1) fixed formula age-weighted
(2) 401(k)
(3) cross-tested
(4) stock bonus
A. (1) and (3) only
B. (2) and (3) only
C. (3) and (4) only

5. D. (2) (3) and (4)
2. Bob D. Builder, owner of Bob’s Construction, would like to
offer a retirement plan that would help reduce turnover. Bob
should consider using a(n)
A. 401(k) plan
B. profit sharing plan
C. savings plan
D. age-weighted plan
E. defined benefit plan
3. Looking beyond pure capital accumulation needs, which of
the following is a primary capital needs planning objective?
A. determining pension plan income benefits
B. identifying retirement cash flow
C. accounting for income from future savings
D. translating capital into living expense needs
4. Which of the following is not an acceptable method for
overcoming a retirement shortfall?
A. cut back on expenses before retirement
B. invest a large portion of a retirement portfolio in a high-risk
investment to obtain a higher return
C. increase pre-retirement savings
D. retire later
E. tap into home equity
5. Cathy Atwater is 60, 5 years away from retirement. The most
accurate method for her to use in calculating her income needs
during retirement is the
A. expense method
B. replacement ratio method

6. 6. What is the name of the basic unit used to determine the
amount of each monthly benefit payable under Social Security?
A. Average Indexed Monthly Earnings (AIME)
B. Delayed Retirement Credit (DRC)
C. Fully Insured Amount (FIA)
D. Primary Insurance Amount (PIA)
7. Which one of the following is the minimum age at which an
individual is entitled to a Social Security retirement benefit?
A. 62
B. 65
C. 66
D. 67
8. Which of the following is (are) true regarding entitlement to
Social Security disability benefits?
A. the worker must be currently or fully insured
B. the worker must have been disabled for at least 18 months or
expected to be disabled for 18 months
C. the worker must have completed a 6-month waiting period or
be specifically exempted from this requirement
D. all of the above
E. only A and C
9. Employment after retirement will
A. always result in a loss of all Social Security Benefits
B. result in loss of some or all Social Security Benefits only for
those under normal retirement age who have earnings above a
specified threshold
C. result in loss of $1 of benefits for each $3 of earnings for
those at or older than normal retirement age
D. reduce Social Security earnings only if the worker is under
normal retirement age and self-employed
E. have no effect on Social Security Benefits
10. Howard Stein is 65 this year and his wife, Gertie, is 62.

7. They got married after high school and their youngest son has
graduated from college. Gertie has been a full-time homemaker
all of her adult life, but devoted 20 hours a week to volunteer
efforts. Howard will begin drawing Social Security retirement
benefits this year. Gertie can receive
A. no benefits because she was never employed outside the
home
B. a mother’s benefit because she has had children
C. a spouse’s benefit equal to 50% of Howard’s primary
insurance amount (PIA)
D. a benefit based on credits earned from her volunteer work
E. a spouse’s benefit equal to less than 50% of Howard’s
primary insurance amount (PIA)
11. Workers who continue their employment between normal
retirement age and 70 receive an increase in Social Security
retirement benefits.
A. True
B. False
12. Juan T. B. and I. B. Cool were married 8 years ago. Their
divorce was finalized this week. At age 65, I. B. is eligible for
Social Security benefits under Juan’s work record.
A. True
B. False
13. Taking into consideration all of the coverage available
under each part, which of the following Medicare parts is (are)
primarily financed by payroll taxes?
(1) Part A
(2) Part B
(3) Part C
(4) Part D
A. (1) only
B. (2) and (3) only
C. (2) (3) and (4) only

8. D. (1) (2) (3) and (4)
14. Which of the following is not included in coverage under
Medicare Part B?
A. inpatient hospital care
B. anesthesia
C. diagnostic tests
D. blood transfusions
15. Hospice care is covered under Hospital Insurance (Part A)
when the beneficiary meets all of the following requirements,
except
A. is eligible for Hospital Insurance benefits
B. is certified by a doctor as terminally ill
C. files a statement electing to waive all other Medicare
coverage for hospice care
D. pays the required deductible
16. Elsie and her husband Zeb were married 55 years before he
died last year. When Zeb retired at age 65, he began receiving
benefits from Social Security and Medicare Part A. As a life-
long homemaker, Elsie receives spouse benefits from Social
Security. Earlier this year, at age 75, Elsie was in a car
accident, breaking her hip and cracking four ribs. After two
weeks in the hospital, she was transferred to a skilled nursing
facility for 10 more days. After her discharge, a visiting nurse
came by her home once a week. Which of the following
services are covered under Medicare Part A for Elsie?
A. inpatient hospital care only
B. inpatient hospital care and post-hospital extended care in a

9. skilled nursing facility
C. inpatient hospital care and home health service benefits
D. post-hospital extended care in a skilled nursing facility and
home health service benefits
E. inpatient hospital care, post-hospital extended care in a
skilled nursing facility, home health service benefits
17. Mary is not eligible for Medicare Part A and therefore has
not enrolled. In which of the following Medicare coverages may
Mary enroll?
(1) Hospital Insurance
(2) Medical Insurance
(3) Medicare Advantage
(4) Prescription Drug Insurance
A. (1) (2) and (3) only
B. (2) (3) and (4) only
C. all of the above
D. none of the above
18. Which of the following is not true regarding the Survivor
Benefit Plan (SBP)?
A. it will pay a monthly annuity to a surviving spouse
B. a retiring service member is automatically enrolled in SBP if
he or she has a spouse or dependent children
C. surviving family members can be eligilbe for up to 85% of
retired pay
D. SBP coverage may be elected for a former spouse or parent
E. all of the above are true
19. The next of kin of a service member who dies while on
active duty will be paid a death gratuity in the amount of
A. $25,000
B. $50,000
C. $75,000
D. $100,000

10. 20. If a service member entered the armed forces after August
1986, he/she would be eligible for which type of military
pension?
A. Final Pay Retirement System
B. High-3 System
C. REDUX System
D. Thrift Savings Plan
E. Retirement Savings Contribution Plan
21. A veteran’s eligibility for the Aid and Attendance Pension is
predicated upon which of the following?
(1) 90 days of active duty service
(2) at least 1 day of service during a period of war
(3) an honorable discharge
(4) payment of a monthly premium
A. (1) and (3) only
B. (2) and (4) only
C. (1) (2) and (3) only
D. (2) (3) and (4) only
1