Congratulations! You Have Just Retired with $1

question 23

Multiple Choice

Congratulations! You have just retired with $1.4 million dollars in your 401(k) plan.You will be receiving a fairly large Social Security check and you have adequate personal savings outside of your 401(k) to live on for several years.You don't want to lock up your retirement money into an annuity because you want to be flexible for the future.What would be your best option?

• A)Purchase an early withdrawal annuity.
• B)Roll over the balance into a qualified IRA account.
• C)Hire a Certified Financial Planner for investing advice.
• D)All of the above are correct.
• E)Only B and C are correct.

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Definitions:

Profitability Ratios

Financial metrics used to assess a business's ability to generate earnings relative to its revenue, assets, equity, and other factors.

Comprehensive Income

Represents the total change in equity for a business enterprise during a period from transactions and other events from non-owner sources.

Unrealized Loss

A loss that results from holding onto an asset that has decreased in value, but has not actually been sold yet.

Available-For-Sale Securities

Financial assets that are purchased with the intent to sell before their maturity date, and not held to maturity or traded actively.