Financial Planning Quiz

Which of the following is considered a worthwhile asset that may increase in value?

• A boat.

• Furniture.

• A new car.

• Continuing education.

• Clothing.

Engaged couples should consider a prenuptial agreement under the following circumstances EXCEPT:

• When one partner works in a profession with substantial projected earnings.

• When one partner holds a more advanced degree than the other.

• When one partner owns a business.

• When one partner has financial responsibilities such as the care of an elderly parent.

• All of the above.

When setting up a basic financial plan, one must address all of the following EXCEPT:

• Review monthly budget.

• Minimize debt.

• Plan for your children’s college.

• Set up an emergency fund.

• Minimize major purchases.

Which type of power of attorney is commonly used for estate planning purposes?

• Conventional power of attorney.

• Durable power of attorney.

• Springing power of attorney.

• Absolute power of attorney.

• None of the above.

What happens to your property if you die without a will?

• The court distributes your property equally between your children.

• The court distributes your property according to the laws of the state.

• The court donates your estate to the poor.

• The court divides your property between your heirs and the state.

• None of the above.

If you are hired by a company that has a 401K, you should wait a while before you join it

• True

• False

What is debt management?

• A strategy for paying off student loans
• A plan for using credit wisely and reducing debt
• A way to increase credit card spending

This is an example of a "Financial Goal"

• Graduating from college

• Becoming a teacher

• Learning to play an instrument

• Purchasing a new home

Most adults in their 20's should allocate 10-15% to savings?

• True

• False

A Roth IRA is only for people that are in their 60's

• True

• False