BTravlin
Full time employment: Posting here.
- Joined
- May 18, 2010
- Messages
- 996
100% and I agree it's too easy.
Still taking the test.... but found that question 11 answer is wrong...
they have "Allows you to shelter retirement savings from taxation"...
Shelter means to protect from.... but all it does is defer taxation, a ROTH shelters it from taxation...
Finished... 16 of 16.... and I do not think the last few questions can be answered different than what they have...
Other tax shelters can be legal and legitimate:....
- Retirement plan. In order to reduce burden of the government-funded pension systems, governments may allow individuals to invest in their own pension. In the USA these sanctioned programs include Individual Retirement Accounts (IRAs) and 401(k)s. The contributed income will not be taxable today, but will be taxable when the individual retires. The advantage to these plans is that money that would have been taken out as taxes is now compounded in the account until the funds are withdrawn. With the Roth IRA and the newly introduced ([2006]) Roth 401(k), income is taxed before the contributions are made into the account but are not taxed when the funds are withdrawn. This option is preferred by those workers who expect to be in a higher tax bracket during retirement than they currently are. A similar system is available in the United Kingdom and is known as the Individual Savings Account.
Probably goes good with beer.
15/16. I goofed on the question about the different types of life insurance (whole life, universal life, and renewable term). I have never bought life insurance, so know very little about it.