AAMS Module 6 Quiz Questions And
100% Correct Answers
\.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? - ANSWERS✔-$70,200
\.What is the maximum percentage of Social Security benefits that may
be included in a taxpayer's gross income? - ANSWERS✔-85%
\.In order to qualify for a reverse mortgage, the borrower must meet all
of the following requirements EXCEPT - 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 - 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? -
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 - 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 - ANSWERS✔-instruct the pension
plan to roll over the funds directly to her new IRA.
\.Which of these best explains why a client would select a single life
annuity distribution option from a retirement plan? - ANSWERS✔-To
maximize the periodic payment if the client had no need or desire to
have any portion of the plan benefits left after death
\.Which of these statements explains an investment planning
consideration during retirement relating to the length of the retirement
period? - ANSWERS✔-The retirement period can be long, so clients
should consider taking greater risk for greater return to keep up with
inflation.
\.Which of these is an advantage of using a charitable remainder trust
funded with appreciated stock? - ANSWERS✔-The donor can take an
100% Correct Answers
\.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? - ANSWERS✔-$70,200
\.What is the maximum percentage of Social Security benefits that may
be included in a taxpayer's gross income? - ANSWERS✔-85%
\.In order to qualify for a reverse mortgage, the borrower must meet all
of the following requirements EXCEPT - 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 - 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? -
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 - 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 - ANSWERS✔-instruct the pension
plan to roll over the funds directly to her new IRA.
\.Which of these best explains why a client would select a single life
annuity distribution option from a retirement plan? - ANSWERS✔-To
maximize the periodic payment if the client had no need or desire to
have any portion of the plan benefits left after death
\.Which of these statements explains an investment planning
consideration during retirement relating to the length of the retirement
period? - ANSWERS✔-The retirement period can be long, so clients
should consider taking greater risk for greater return to keep up with
inflation.
\.Which of these is an advantage of using a charitable remainder trust
funded with appreciated stock? - ANSWERS✔-The donor can take an
