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Employee plus employer contributions to a 401(k) are $15,000 per year. Equity funds are earning 15 percent, bond funds 8 percent, and money market funds 6 percent. The employee wants to retire as soon as possible with $1 million in retirement assets. If he puts 50 percent of his money in stocks, 30 percent in bonds, and 20 percent in money funds, how long until he can expect to retire?

A bank has invested in U.S. Treasury investments that mature in two years. They will be held until maturity. The investments are funded with three-year maturity time deposits. The primary risk this bank faces is ______.

Social Security is a _________.

The prudent-person rule requires pension fund fiduciaries to act with diligence and care.

The main advantage of a profit-sharing Keogh plan over a money-sharing Keogh plan is that profit-sharing plans __________.

Under ERISA, pension fund managers are required to invest fund assets as wisely as if they were investing their own money. This requirement is called the _________.

What type of account is a Keogh account?

Under ERISA, the maximum time period allowed for vesting is __________ years.

An individual is considering contributing $6,000 per year to either a traditional or a Roth IRA. Payments would begin in one year. If she uses the traditional IRA, her contributions would be fully deductible. She is 45 years old and is in the 32% tax bracket. On either IRA she can earn 7.5%. When she retires at age 65, she believes she will be in the 15% tax bracket. She will withdraw all her money upon retirement and may owe taxes then, depending on the type of IRA chosen. Assume that she will invest not only the $6,000 per year, but any tax savings due to the deductibility of her contributions in a taxable investment earning a pretax rate of 7.5%, answer the following questions: Note: If you are not sure about your solutions, show intermediate steps to earn partial credits. (1) If she contributes to the traditional IRA, how much will she accumulate after tax upon retirement? (8.5 points) (2) If she contributes to the Roth IRA, how much will she accumulate after tax upon retirement? (5.5 points) (3) Which type of IRA should she choose? (1 point)

Which of the following is true regarding carcinoma of the gallbladder?