Financial Planning: Retirement and Estate

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53 Questions

Match the following terms with their definitions:

Retirement planning = Determining how much money should be set aside each year for retirement and how to invest those funds Estate planning = Determining how your wealth will be distributed before or upon your death Cash inflows = Cash that you receive Cash outflows = Cash that you spend

Match the following components with their effects:

Financial plan = Enhances your net worth Budgeting = Balances income and spending Liquidity = Deals with cash excesses or shortages Retirement planning = Affects how much cash you have available

Match the following actions with their purposes:

Building Your Own Financial Plan = Enhances your net worth Budgeting = Allows you to plan how you will use the cash you receive in a given period Insurance planning = Part of a plan for your retirement and estate Liquidity management = Deals with managing cash excesses or shortages

Match the following statements with their descriptions:

All Rights Reserved A Plan for Your Retirement and Estate = Includes insurance planning, retirement planning, and estate planning How Financial Plan Decisions Affect Your Cash Flows (1 of 13) = Explains how cash inflows and outflows relate to budgeting and liquidity management Tools for Financial Planning = Includes college tuition, car, house as part of budgeting decisions How Financial Plan Decisions Affect Your Cash Flows (2 of 13) = Discusses planning cash usage in a given period.

Match the following with their definitions:

Personal finance = the process of planning your spending, financing, and investing to optimize your financial situation Personal financial plan = a plan that specifies your financial goals and describes the spending, financing, and investing plans that are intended to achieve those goals Opportunity cost = what you give up as a result of a decision Financial advisor = a career opportunity

Match the following chapter objectives with their descriptions:

Chapter Objective 1.1 = Explain how you benefit from personal finance Chapter Objective 1.2 = Identify the key components of a financial plan Chapter Objective 1.3 = Explain how financial planning affects your cash flows Chapter Objective 1.4 = Outline the steps involved in developing your financial plan

Match the following benefits with understanding personal finance:

Make your own financial decisions = Every spending decision has an opportunity cost Judge the advice of financial advisors = Make informed decisions Become a financial advisor = Many career opportunities available Personal finance knowledge = Optimizing your financial situation

Match the following fastest-growing occupations with their growth rate:

Physical therapy aides = 40% Skincare specialists = 40% Physician assistants = 38% Segmental pavers = 38%

Match the following occupations with their annual median pay:

Physical therapy aides = $23,880 Skincare specialists = $28,640 Physician assistants = $90,930 Segmental pavers = $33,720

Match the following fastest-growing occupations with their job titles:

Helpers for electricians = 38% Information security analysts = 37% Occupational therapy aides = 36% Health specialties = 36%

Match the following occupations with their annual median pay:

Physician assistants = $90,930 Information security analysts = $86,170 Health specialties = $81,140 Physical therapists = $79,860

Match the following job titles with their growth rate:

Physical therapy aides = 40% Physician assistants = 38% Occupational therapy aides = 36% Medical secretaries = 36%

Match the following job titles with their annual median pay:

Skincare specialists = $28,640 Helpers for electricians = $27,670 Occupational therapy aides = $26,850 Medical secretaries = $31,350

Match the components of a financial plan with their descriptions:

Budgeting and tax planning = The process of forecasting future expenses and savings Managing your liquidity = Access to funds to cover short-term cash deficiencies Financing your large purchases = Decisions regarding how much credit to obtain Protecting your assets and income (insurance) = Safeguarding against financial loss

Match the financial terms with their definitions:

Assets = What you own Liabilities = What you owe Net worth = Value of what you own minus the value of what you owe Liquidity = Access to funds to cover short-term cash deficiencies

Match the activities in money management with their descriptions:

Money management = Decisions regarding how much money to retain in a liquid form Credit management = Decisions regarding how much credit to obtain to support spending Budget planning = The process of forecasting future expenses and savings Investing your money = Allocating funds among short-term investment instruments

Match the years with the copyright information:

2011 = All Rights Reserved A Plan to Manage Your Liquidity (2 of 2) 2017 = All Rights Reserved A Plan for Your Budgeting and Tax Planning 2014 = All Rights Reserved A Plan to Manage Your Liquidity (1 of 2)

Match the following fastest-growing occupations with their annual median pay:

Industrial organizational psychologist = $83,580 Personal care aides = $19,190 Home health aides = $20,820 Interpreters and translators = $45,430

Match the following fastest-growing occupations with their growth rate over the 2012–2022 period:

Insulation workers = 47% Diagnostic medical sonographers = 46% Genetic counselors = 41% Physical therapy assistants = 41%

Match the following fastest-growing occupations with their job description:

Masons = Construction workers who build structures like walls and buildings using bricks or stones Occupational therapy assistants = Work under the direction of occupational therapists to provide rehabilitative services to people with mental, physical, emotional, or developmental impairments Personal care aides = Assist clients with daily living activities in their home or in a care facility Interpreters and translators = Convert information from one language to another for communication between people who speak different languages

Match the following impacts of economic conditions with their effects on financial positions:

Reduction in new job opportunities = Fewer chances for employment for job seekers Elimination of some jobs = Job loss for some workers Lower salaries for existing jobs = Decrease in income for employed individuals Value of many assets declined = Reduction in worth of investments and properties

Match the following occupations with their primary focus area:

Industrial organizational psychologist = Workplace behavior and productivity enhancement Diagnostic medical sonographers = Performing ultrasound imaging procedures for medical diagnosis Genetic counselors = Providing information and support to individuals with genetic disorders or at risk of inherited conditions Physical therapy assistants = Assisting physical therapists in providing treatment and rehabilitation services to patients

Match the following occupations with their specific responsibilities:

Home health aides = Assisting elderly or disabled individuals with daily tasks at home Insulation workers = Installing materials to help control temperature and sound in buildings Occupational therapy assistants = Aiding patients in developing or recovering skills needed for daily living and working Personal care aides = Supporting clients in personal hygiene, meal preparation, and medication management

What is the consequence of ignoring the rules of a car lease contract?

Facing detention according to the UAE Federal Penal Code

Which action should you take to ensure your bank statement aligns with your check register?

Record checks in your checkbook as you write them

What is a common feature of checking accounts offered by banks?

Debit cards tied to your checking account

What does bouncing a cheque refer to?

A cheque being returned due to insufficient funds

Which of the following is NOT mentioned as an electronic service offered by financial institutions?

Physical cheque deposits

What is a consequence for making loan payments after the deadline according to the text?

Fees charged by the bank

What type of financial institution provides mortgage and personal loans to individuals?

Savings institutions

Which financial institution guarantees the full amount of deposits in the UAE?

UAE central bank

What type of financial institution serves members who have a common affiliation?

Credit unions

Which financial institutions use funds from deposits to provide commercial and personal loans?

Commercial banks

Why do interest rates change over time according to the text?

To reflect changes in economic conditions

Which type of financial institution primarily offers commercial and personal loans?

Commercial banks

What makes cashier's checks treated as guaranteed funds?

The bank is responsible for paying the amount, not the purchaser.

Which financial instrument specifies a minimum investment, an interest rate, and a maturity date?

Certificate of deposit

What is the risk-free rate in the UAE?

2.5%

Which financial service allows individuals to write a check against a large financial institution or credit card sponsor's account?

Traveler's check

What determines whether a deposit is considered risk-free?

The guarantee of return even in case of bank bankruptcy

Which factor influences cash inflows and outflows by affecting interest rates?

Interest rates on deposits and loans

What is the purpose of the risk premium in investments?

To compensate investors for accepting more risk

Why do individuals with poor credit history pay higher loan rates?

As a result of the risk premium added by financial institutions

What happens to the risk premium when firms issue securities in a weak economy?

It increases as firms must pay a higher premium to sell securities

Why is pursuing risky investments to make up for limited income considered faulty reasoning?

Because individuals with limited incomes can less afford losses

During a favorable economic climate, are investors more or less willing to invest in securities with higher risk premiums?

More willing

Explain why financial institutions loan money at rates higher than they pay depositors.

To earn a profit from the interest rate spread

What is recommended for individuals with limited income during a bad economy?

Focusing on safe investments, even if they offer lower returns

What should you do if you will need your money within a year?

Avoid all risks

What does the term 'term structure of interest rates' refer to?

Relationship between maturities of risk-free debt securities and annualized yields

Where can you find graphs illustrating how returns change over time?

Financial publications like the Wall Street Journal

How do financial institutions typically obtain funds?

By accepting deposits and providing loans to individuals and firms

What is the primary focus when choosing investments during a bad economy?

Choosing safe investments even if they offer lower returns

This quiz covers topics related to insurance planning, retirement planning, and estate planning in the context of building a financial plan. It includes determining retirement savings, investment strategies, and distribution of wealth upon death.

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