AAMS Module 6 Quiz with complete
solutions
Based on the 2008 Aon Consulting Worldwide study, a client with a preretirement
income of $90,000 will need approximately how much income during retirement? -
Correct Answers -$70,200
What is the maximum percentage of Social Security benefits that may be included in a
taxpayer's gross income? - Correct Answers -85%
In order to qualify for a reverse mortgage, the borrower must meet all of the following
requirements EXCEPT - Correct Answers -be 55 years of age or older
Sam was born in 1954, so his FRA is 66. If he begins receiving Social Security benefits
early, the amount of his monthly Social Security checks will be reduced - Correct
Answers -for the rest of his life.
Which of these choices best explains a fundamental investment strategy for
accumulating funds to be used during retirement? - Correct Answers -You should begin
investing many years before retirement so that compounded returns increase your
retirement fund.
A client, age 55, takes a $3,000 distribution from his rollover IRA to pay for a semester
of college tuition for his 21-year-old son. For the father, the entire distribution is -
Correct Answers -subject to income tax, but it is free from the 10% early withdrawal
penalty
A client has decided to move the funds from her former employer's 403(b) plan into an
IRA. The best way to avoid a 20% withholding tax or any taxable income, would be if
she - Correct Answers -instruct the pension plan to roll over the funds directly to her
new IRA.
What is the first step financial advisors should take when assessing a client's retirement
needs? - Correct Answers -Determining the client's current level of income and
expenses
Which of the following factors is most important when accumulating funds for
retirement? - Correct Answers -Time
Which one of the following is NOT one of the sources of the traditional "three-legged
stool" of retirement income? - Correct Answers -Inheritances
solutions
Based on the 2008 Aon Consulting Worldwide study, a client with a preretirement
income of $90,000 will need approximately how much income during retirement? -
Correct Answers -$70,200
What is the maximum percentage of Social Security benefits that may be included in a
taxpayer's gross income? - Correct Answers -85%
In order to qualify for a reverse mortgage, the borrower must meet all of the following
requirements EXCEPT - Correct Answers -be 55 years of age or older
Sam was born in 1954, so his FRA is 66. If he begins receiving Social Security benefits
early, the amount of his monthly Social Security checks will be reduced - Correct
Answers -for the rest of his life.
Which of these choices best explains a fundamental investment strategy for
accumulating funds to be used during retirement? - Correct Answers -You should begin
investing many years before retirement so that compounded returns increase your
retirement fund.
A client, age 55, takes a $3,000 distribution from his rollover IRA to pay for a semester
of college tuition for his 21-year-old son. For the father, the entire distribution is -
Correct Answers -subject to income tax, but it is free from the 10% early withdrawal
penalty
A client has decided to move the funds from her former employer's 403(b) plan into an
IRA. The best way to avoid a 20% withholding tax or any taxable income, would be if
she - Correct Answers -instruct the pension plan to roll over the funds directly to her
new IRA.
What is the first step financial advisors should take when assessing a client's retirement
needs? - Correct Answers -Determining the client's current level of income and
expenses
Which of the following factors is most important when accumulating funds for
retirement? - Correct Answers -Time
Which one of the following is NOT one of the sources of the traditional "three-legged
stool" of retirement income? - Correct Answers -Inheritances
