What do you know about planning for the future?

Americans increasingly are responsible for providing for their own retirement. Do you really know what you need to be aware of to be sure you will have enough to comfortably live on in your "Golden Years"? The Institute of Certified Financial Planners offers this quiz to help you find out:

1. If you live to age 65, your life expectancy at that point is how many years?

   []A.10 []B.15 []C.20 []D.25

2. Social Security will provide the majority of your retirement needs to maintain your current lifestyle.

   []True []False

3. To enjoy the same standard of living in retirement that you enjoy today, your retirement income will need to be what percentage of your current income?

   []A. 40-50% []C. 60-70% []B. 50-60% []D. 70-80%

4. The risk of using a reverse mortgage to help fund retirement is that you may end up owing more than the value of the house.

   []True []False

5. At what age are you required to begin withdrawing funds from most tax-deferred retirement plans?

   []A. 591/2 []B. 62 []C. 65 []D. 701/2

6. If you fail to withdraw the minimum required distribution from your retirement accounts, what is the penalty on the portion you didn't take out that you should have?

   []A. 50% []C. 25% []B. 40% []D. 10%

7. Under no circumstances can you withdraw funds from an IRA before age 59 1/2 without paying a 10% early withdrawal penalty.

   []True []False

8. Stocks generally should not be part of a retirement investment program because they are risky.

   []True []False

9. The greatest risk of investing in money markets and certificates of deposit for future retirement income is.

   []A. Loss of principal []B. Inflation []C. Low interest rates []D. Taxes

10. Your monthly Social Security benefits will be reduced by what percentage if you begin collecting them at age 62 instead stead of 65?

    []A. 10% []C. 30% []B. 20% []D. 40%

11. Most pension plans provide for annual cost-of-living increases.

    []True []False

    ANSWERS

1. C. Remember, though, you have a 50-50 chance of living longer. Many planners recommend you save with the idea you will live to 90.

2. Probably false. For most wage earners, Social Security will provide less than half, and in many cases as little as...