help please no chatgpt used Which are reasons not to depend on Social Security as a retirement plan? Choose all that apply.The Social Security tax is "pay as you go."There is no money in "your account."You cannot collect full retirement benefits until you are 65.The average monthly payout is only $2000 per month.

The social security tax is " pay as you go" . This statement is CORRECT. The Social Security tax is…

Answered: Which are reasons not to depend on…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 4FPE

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Similar questions

Which of the following statements is currently true:
What happens if you withdraw funds from a traditional IRA before age 59 ? You earn a bonus. You incur a significant penalty. You have just made a required disbursement. You add to your retirement assets.
Sam has a retirement plan that pays him $25,000 a year for the remainder of his life. Which of the following is a true statement about this? O A. This is an annuity. O B. This is not an annuity because the payments are not equal. OC. This is not an annuity because we do not know how much Sam gets paid a month. O D. This is not an annuity because it is not for a predefined period
What is the main benefit of investing in a 401k, IRA, or other retirement account? Multiple Choice The earnings grow without being taxed yearly. The employer matches the employee’s contributions. The employee receives additional tax deductions yearly. The earnings are tax free once withdrawn. These accounts always end up being worth more than the initial contributions.
A client needs assistance with retirement planning. Here are the facts: The client, Dave, is 21 years old. He wants to retire at 65. Dave has disposable income of $2,000 per month. The IRA Dave has chosen has an average annual return of 8%. Question 1. If Dave contributes half of his disposable income to the account, what will it be worth at 65? Question 2. How much would he need to contribute to have $5,000,000 at 65?
Personally Established Retirement Accounts These days, almost anyone can open personal, tax-sheltered retirement accounts whether or not they're enrolled in a plan at work. Terms and provisions vary among plans, so it pays to do some homework before deciding which is best for your circumstances and goals. To help you focus on the aspects of different plans, answer the following questions. Madeline is a sole proprietor. She wants to create a retirement plan that requires the least amount of setup and maintenance effort. What type of plan is Madeline most likely going to open? SEP-IRA О Кеogh Chun is a small-business owner. She wants to create a profit-sharing or money-purchase retirement plan. What type of plan is Chun most likely going to open? SEP-IRA О Кеogh Alison is 58 years old and opened a traditional IRA when she was 53. Alison earns less than $100,000 per year. Her contribution for this year is $7,000. This contribution is made entirely with: pretax dollars. O after-tax…
The difference between a Roth IRA and a traditional IRA is that in a Roth IRA taxes are paid on the income that is contributed, but the withdrawals at retirement are tax-free. In a traditional IRA, however, the contributions reduce your taxable income, but the withdrawals at retirement are taxable. Assume you plan to devote $5,000 to retirement savings in each year. You will retire in 30 years and expect to live for an additional 20 years after retirement. a. Assume the before-tax interest rate is 5%. What will be your after-tax 20-year retirement consumption stream if you choose to save in a traditional IRA? Assume your tax rate is fixed at 30%. (Round your answers to 2 decimal place.) > Answer is complete but not entirely correct. 20-year consumption stream (assuming monthly payouts) $ 27,462.69
The difference between a Roth IRA and a traditional IRA is that in a Roth IRA taxes are paid on the income that is contributed but the withdrawals at retirement are tax-free. In a traditional IRA, however, the contributions reduce your taxable income, but the withdrawals at retirement are taxable. Assume you plan to devote $5,000 to retirement savings in each year. You will retire in 30 years and expect to live for an additional 20 years after retirement.a. Assume the before-tax interest rate is 5%. What will be your after-tax 20-year retirement consumption stream if you choose to save in a traditional IRA? Assume your tax rate is fixed at 30%.b. What will be your 20-year retirement consumption stream if you choose to save in a Roth IRA? c. Which provides better expected results if you expect your tax rate to decrease from 30% today to 25% at retirement?
When you retire, a key goal is to be able replace about 80% of your pre-retirement income level. Social Security will cover a higher percentage of low earners’ needed replacement income than high earners’ replacement income. True or False
Delaying social security benefits is a good strategy for maximizing retirement income. By choosing not to begin receiving benefits at the normal retirement age of 67, a participant’s benefits will increase by ____ percent for each year of delay up to age 70. 1 6.2 8 1.45
When taxpayer receive distribution from qualified retirement plans, how many time is allowed to roll over the amount received into a new plan to avoid paying taxes on the distribution in the current year, assuming there are no unusual events? 60 days 1 year 180 days d 90 day There is no time limit
Use Exhibit 14.2 to estimate the average Social Security benefits for a retired couple. Assume that one spouse has a part-time job that pays $28,000 a year, and that this person also receives another $47,000 a year from a company pension. Assume, that the earnings limit was $17,040 per year. Also assume for Social Security benefits the recipients are aged below 67 and will lose $1 in benefits for every $2 they earn above the earnings test amount. Also assume that they would have to pay taxes of 50% on a combined income between $32,000 and $44,000, of their Social Security benefits. If their combined income is more than $44,000, up to 85% of their Social Security benefits is subject to income tax. Round your answer to the nearest dollar.$ __________ Based on current policies, would this couple be liable for any tax on their Social Security income?-Select: YES or NO

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Which are reasons not to depend on Social Security as a retirement plan? Choose all that apply. The Social Security tax is "pay as you go." There is no money in "your account." You cannot collect full retirement benefits until you are 65. The average monthly payout is only $2000 per month.