Reference no: EM133049957

1. Which of the following is not a way through which to adjust for overall investment uncertainties?

a. Risk-adjusted projections.

b. Conservative projections of future returns.

c. Diversification.

d. Lower bond allocation.

2. Which of the following is not a disadvantage of personal savings using mutual funds?

a. Mandatory withdrawals and no overall tax shelter

b. No overall tax shelter

c. No overall tax shelter and after-tax dollar contributions

d. After-tax dollar contributions

3. Which of the following is a weakness of a traditional annuity?

a. You cannot outlive your annuity payments and a payout guarantee from a company which itself is subject to bankruptcy risk

b. You cannot outlive your annuity payments

c. A payout guarantee from a company which itself is subject to bankruptcy risk and lack of liquidity once you annuitize

d. A payout guarantee from a company which itself is subject to bankruptcy risk

4. Which of the following is the second step of the retirement planning process?

a. Develop goals.

b. Familiarize yourself with retirement issues.

c. Analyze retirement risks.

d. None of the choices are correct.

5. Which of the following categories are more likely to favor a later Social Security payout date?

a. Women

b. Men.

c. None of the choices are correct.

d. People in low marginal tax brackets

6. Typically the most attractive place to save for retirement is a qualified pension, with one exception. What is that exception?

a. None of the choices are correct.

b. The purchase of a home

c. The purchase of a charitable annuity

d. Private investment in mutual funds

7. Which of the following is not an advantage of a mutual fund versus a variable annuity?

a. Higher total expense ratios and a redemption charge for annuities

b. All of these are advantages of a mutual fund versus a variable annuity

c. Favorable capital gains rates on equity fund, appreciation, and dividends

d. Limitation on investment choice for annuities

8. Which of the following is a disadvantage of company pension plans and Social Security?

a. The absence of an option to draw down the money earlier than the scheduled date of payment and the inability to transfer this asset to others at death

b. The inability to transfer this asset to others at death

c. The absence of an option to draw down the money earlier than the scheduled date of payment

d. Level payments that are not subject to market fluctuations

9. Which of the following is not a common risk factor that incorporated by financial planners when performing post-retirement planning?

a. Health difficulties forces retirement at an earlier age than expected

b. All of these are common risk factors when performing post-retirement planning

c. Investment returns proved lower than expected

d. Planning for retirement was not done in a logical, structured way

10. Which of the following best defines heath risk as it pertains to financial matters?

a. The possibility of small unreimbursable costs and the possibility of poor health following retirement

b. The possibility of large unreimbursable costs

c. The possibility of poor health following retirement

d. The possibility of small unreimbursable costs