Lynn Roy Will Retire in the Next Year and Has

question 34

Multiple Choice

Lynn Roy will retire in the next year and has $675,000 in savings and investments and owns her own home that is worth $250,000.Which step in the financial planning process does this situation demonstrate?

• A)Determining her current financial situation
• B)Developing her financial goals
• C)Identifying alternative courses of action
• D)Evaluating her alternatives
• E)Implementing her financial plan

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Definitions:

Federal Income Tax

A yearly fee assessed by the national government on the income of individuals, corporations, trusts, and assorted legal entities.

Gross Earnings

The total income earned by an individual or business before any deductions like taxes or benefits.

FUTA

Federal Unemployment Tax Act; a United States federal law that imposes a payroll tax on businesses to fund state workforce agencies.

SUTA

State Unemployment Tax Act, a U.S. federal law that imposes a payroll tax on employers to fund the unemployment compensation program.