Which of the following are true of current trends in retirement planning?A) There is an increased focus on planning for longevity.B) The percentage of defined benefits plans is increasing.C) Fewer employers are sponsoring financial wellness initiatives. D) A study reported in the Journal of the American Medical Association (JAMA) found that longevity differences are high explainable by the adverse effects of inequality. Question 78 of 85 Stacy has paid off the mortgage on her home, but her income is very tight. She has seen a lot of commercials about reverse mortgages and has come to you for advice. Which of the following are true concerning reverse mortgages? 1. If the eventual sale of the home does not cover the reverse mortgage balance, the estate will not be required to make up the difference. II. Homeowners with reverse mortgages do not have to worry about any home costs other than keeping up the utilities. III. Homeowners with a reverse mortgage can be guaranteed tenure payments for life. IV. Reverse mortgage payments to the homeowner are always income-tax-free. A) II and III B) I and IV C) I and II D) III and IV
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- A) There is an increased focus on planning for longevity. This is true. With people living longer, retirement planning increasingly emphasizes longevity risk. - B) The percentage of defined benefit plans is increasing. This is false. Defined benefit Show more…
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Rashmi S.
Fred Cruz joined his employer's defined contribution pension plan when it was first established fifteen years ago. Fred is now just eight years from retirement, at age 60, and he is working with his financial planner to assess his retirement savings. For Fred's participation in the company pension plan, which of the following statements is false? 1. The investment performance of the assets held in Fred's pension plan will directly affect the amount of Fred's pension. 2. Fred's pension provides a specific benefit amount at retirement, regardless of investment performance. 3. Fred must take responsibility for investment decisions related to managing his pension plan assets. 4. While Fred has participated in the company pension plan for fifteen years, there is no guarantee as to his amount of pension income when he retires.
Prabhakar K.
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