УГБА 135: Персонал финанце

What is not "consideration" when creating a contract?

Gender

Avoid the following credit card mistake.

Using it to withdraw cash from an ATM.

What is the combined percentage rate of earned income paid to Social Security by the employer and the employee?

12.4%

The most common errors found in credit reports is:

Social Security number is in error., Charges mistakenly reported, It's not your report

Video: The median credit score is:

712

In terms of annual income, to be in the top 1% of households, annual earnings should exceed about:

$400,000

It is estimated that seniors take out in Social Security and Medicare benefits an amount equal to

Six time what they put in

Video: Advice varies on which debt to pay off first. Which of the following is a recommended choice?

The debt with the lowest interest rate

The burden of saving and investing for retirement and healthcare is shifting more and more from the

Employer to employee

The fee charged by the new provider when you transfer the balance from one credit card to another is called a

Correct! Balance transfer fee

Video: If you are healthy, you should wait until which age to claim Social Security benefits in order to maximize your expected lifetime benefits?

70

According to the IRS, what percentage of households has a net worth of at least $1 million?

4.9%

With a deferred interest plan, if you are late in your payments

You may be charged interest on the entire balance retroactively

To avoid a late payment fee, if paying by mail the payment must be

Received by the due date

Approximately what percentage of millionaires are self-employed or own a business?

50+%

Interest in a credit card account is normally calculated:

Daily

Social Security is a

pay-as-you-go plan.

The "cornerstone" of wealth is

being frugal

We define "wealth" as

lifestyle

Of all the money the government spends, approximately what % is spent on senior citizens?

40%

Under Social Security the employer and the employee

Share equally in the cost of the program

Fees for inactivity, loading money, monthly maintenance and checking your balance are common to

Prepaid cards

To be in the top 10% of households, annual earnings should exceed about

$113,000

The legal limit on interest applied to unpaid credit card balances is:

There is no limit

The biggest financial challenge facing future generations is:

More elderly to be supported by fewer workers.

The range of a subprime FICO score is about

620-660

Which of the following is not a good use of debt?

borrowing money for a vacation

When a lender is willing to loan money without requiring any collateral, the loan is considered:

Unsecured

What does a Notary Public do?

Witnesses the signing of non-contentious documents.

Seniors are eligible for Medicare at age

65

Video: Social Security benefits are adjusted for the cost of living...

Correct!

True

Banks may waive over the limit fees and late penalties the first time if you ask...

True

A secured debit card takes money out of your bank account, but does not necessarily help you establish credit...

True

A person with an obligation to repay a loan is referred to as a "debtor"...

True

If you pay off the balance each month your credit score will be lowered...

False

If you borrow money you should know how you're going to pay it back...

True

Most millionaires chose their occupations based upon how much money they would make...

False

Under the "Card Act" the interest default rate may not exceed 35%...

False

Video: If a credit card is in your spouse's name and you did not co-sign, the payment history on that card will not affect your credit score...

True

You do not pay Social Security taxes on interest you earn...

True

It's best to not use a debit card for hotels or to rent cars because they will probably put a hold on your account...

True

When a party does not adhere to a term or condition of a contract, the contract is considered breached...

True

The most important part of your credit report is your credit score...

False

Both Part A and Part B of Medicare are free to all eligible seniors. But Part D is paid is paid for by the individual...

False

To alert you to possible identity theft the IRS will email or call you...

False

Interest on payday loans can legally exceed 300%...

True

For an account in good standing, interest rate increases can only apply to new charges, not prior balances even if there are current changes in a credit report or a credit score...

True

Your loss due to credit card theft is limited to $50 if reported within two days of discovery...

True

The annual rate of interest is the same as the APR...

False

The information on your credit report determines your credit score...

True

Interest paid on credit cards is tax deductible...

False

If you are more than 60 days late in making the minimum payment, the issuer may charge you the interest default rate...

True

A certified check is a personal check guaranteed by a bank...

True

Video: If a credit card is in your spouse's name and you did not co-sign, the payment history on that card will not affect your credit score...

True

You do not pay Social Security taxes on interest you earn...

True

The maximum tax on long-term capital gains is:

20%

The government collects most of its tax revenue from:

Individual taxpayers

Income from renting real estate is taxed:

As unearned income

Which of these is earned income?

Bonuses

You may be required to file a quarterly estimated tax payment if:

No tax has been withheld for a substantial amount of income.

One of the first things an employer will do is have you complete Form W-4 to:

Determine how much to withhold from each paycheck.

Eligible tax deductions may include home mortgage interest, medical expenses, and charitable deductions.

True

Tax "credits" reduce your taxes dollar for dollar.

True

The federal estate tax is paid by the estate before distribution.

True

To use the Standard Deduction, you must keep accurate records or proof for a minimum of 3 years.

False

Tax deductions are amounts you deduct from your taxable income to reduce your taxes.

True

Bonds issued by corporations are secured by the

Corporation's assets

What is a prenuptial agreement?

An agreement entered into in contemplation of marriage, specifying the rights and ownership of the parties' property.

What is alimony?

Legally mandated payment from one spouse to another after separation or divorce

What is community property?

property owned jointly by a married couple.

What percent of married couples argue over money?

70%

Financial intimacy

means coming up with a shared approach to spending, saving,

and investing.

What percent of divorces are over money?

50%

Property in Marriage

Separately owned property may be retained after marriage by the spouse who owns the property. Individual inheritances and gifts may also be retained as separate property even after marriage as long as they have

not been co-mingled.

T/F when you marry you do not legally take on the debt your partner amassed before you wed.

True

What is effective January 1, 2019

All new divorce or separation instruments executed or

modified requiring alimony payments will not be tax deductible to the payer and will not be taxable income to the recipient

What is the coupon yield?

fixed percentage rate of interest based upon the par value of the bond

What is the current yield?

annual interest payment divided by the market price of the bond

What is yield to maturity?

a yield measurement that considers a bond's annual interest plus price appreciation or depreciation if the bond is held to maturity.

What is a bond?

A long-term debt instrument in which a borrower agrees to make payments of principal and interest, on specific dates, to the holders of the bond.

What happens if a bond defaults?

as corporate bonds are not backed by the US government, corporate assets are used to back it

when interest rates decrease, bond prices:

increase

when interest rates increase, bond prices:

decrease

What bond is better based on a high income tax bracket: muni or corporate?

Muni

Interest on US government bonds

is exempt from state and local taxes, but not from federal income taxes.

Federal agency bonds are

not guaranteed by the US government, but held in high

regard, since they are issued by government agencies.

Bonds are fixed income securities. By far, the greatest dangers for bond investors are

rising interest rates and inflation

Corporate Bonds

long-term debt issued by private corporations typically paying semiannual coupons and returning the face value of the bond at maturity

Federal agency bonds are

not guaranteed by the US government

Muni bonds are

exempt from federal income taxes and may even be free from

some state income taxes, if owned by residents of the state in which they are issued, such as California, New York, and others

Who grants stock options?

board of directors

What is an EFT?

Electronic trading fund

How do you define a good dividend

Something greater than the rate of inflation

Discipline 1

Never borrow money to buy stocks