Question 1
Old-age benefits of Social Security recipients may be reduced if the client earns income
from wages and salary during retirement prior to Social Security's full retirement age. By
how much are the benefits reduced?
CORRECT ANSWER
Benefits paid to persons in the years prior to attaining full retirement age are reduced by
$1 for every $2 earned over the limit.
Question 2
How much tax exempt interest is included in SS?
CORRECT ANSWER
ALL Tax-exempt interest is included in the computation of the taxation of SS benefits.
Question 3
When seeking investments that have the least amount of risk, what beta do you choose?
CORRECT ANSWER
The absolute lowest one! 0.5
Question 4
What does the Coefficient of Variation measure? How do you calculate it?
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@THE STUDY VAULT
,CORRECT ANSWER
It measures a securities risk adjusted return. It allows you to compare 2 securities together,
so you DIVIDE.
DEVIATION DIVIDED BY THE EXPECTED RETURN.
Question 5
What kind of money comes out of a Roth IRA distribution first?
CORRECT ANSWER
Contribution amounts always come out of a Roth IRA account first, and then conversion
amounts, if any.
Question 6
When can a distribution be made from a TSA? 4 categories!
CORRECT ANSWER
Employee separates from service, attains age 59 1⁄2, becomes disabled or dies, or qualifies
under hardship rules.
Question 7
Non spring POA remains effective when?
CORRECT ANSWER
Remains effective after the principal becomes incapacitated. NON Spring. NOT springing
into action until AFTER.
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@THE STUDY VAULT
,Question 8
Springing POA remains effective when?
CORRECT ANSWER
Becomes effective when the principal becomes incompetent or incapacitated. SPRINGING.
Springing into action WHEN it happens.
Question 9
What does Medicare Part A cover and how do you pay for it?
CORRECT ANSWER
Covers hospital charges but patient must pay for all costs in a hospital beyond 150 days.
Provided at no charge. No premium.
Question 10
What does Medicare Part B cover and how do you pay for it?
CORRECT ANSWER
Covers physician services
Premium charge! If you're eligible for Part A, you've got Part B, BUT FOR A CHARGE!
Question 11
What makes you eligible for Medicare coverage?
CORRECT ANSWER
Over 65 and in a covered occupation meaning you're getting social security.
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@THE STUDY VAULT
, Question 12
What situations are exempt from the 10% penalty on qualified plan distributions made
before age 59 ½?
CORRECT ANSWER
Distributions because of death and annuitized payments based on an individual's
remaining life expectancy.
Question 13
What does "Currently" insured mean and what would you qualify for?
CORRECT ANSWER
6 quarters of coverage (so about 2 years paying into social security) What would you
qualify for? ONLY 2 THINGS! Survivor's benefit for dependent child and Lump-sum death
benefit spouse or child. Your spouse doesn't get anything!
Question 14
What does "Fully" insured mean and what would you qualify for?
CORRECT ANSWER
40 quarters of coverage (10 YEARS paying into social security!) What would you qualify for?
Everything. Survivor's benefit for your dependent parent who is age 62 or older. Survivor's
benefit for Maxine's spouse or former spouse who is age 60 or older. Dependent child
benefits.
Question 15
How are net LONG term capital gains taxed?
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@THE STUDY VAULT
Old-age benefits of Social Security recipients may be reduced if the client earns income
from wages and salary during retirement prior to Social Security's full retirement age. By
how much are the benefits reduced?
CORRECT ANSWER
Benefits paid to persons in the years prior to attaining full retirement age are reduced by
$1 for every $2 earned over the limit.
Question 2
How much tax exempt interest is included in SS?
CORRECT ANSWER
ALL Tax-exempt interest is included in the computation of the taxation of SS benefits.
Question 3
When seeking investments that have the least amount of risk, what beta do you choose?
CORRECT ANSWER
The absolute lowest one! 0.5
Question 4
What does the Coefficient of Variation measure? How do you calculate it?
1
@THE STUDY VAULT
,CORRECT ANSWER
It measures a securities risk adjusted return. It allows you to compare 2 securities together,
so you DIVIDE.
DEVIATION DIVIDED BY THE EXPECTED RETURN.
Question 5
What kind of money comes out of a Roth IRA distribution first?
CORRECT ANSWER
Contribution amounts always come out of a Roth IRA account first, and then conversion
amounts, if any.
Question 6
When can a distribution be made from a TSA? 4 categories!
CORRECT ANSWER
Employee separates from service, attains age 59 1⁄2, becomes disabled or dies, or qualifies
under hardship rules.
Question 7
Non spring POA remains effective when?
CORRECT ANSWER
Remains effective after the principal becomes incapacitated. NON Spring. NOT springing
into action until AFTER.
2
@THE STUDY VAULT
,Question 8
Springing POA remains effective when?
CORRECT ANSWER
Becomes effective when the principal becomes incompetent or incapacitated. SPRINGING.
Springing into action WHEN it happens.
Question 9
What does Medicare Part A cover and how do you pay for it?
CORRECT ANSWER
Covers hospital charges but patient must pay for all costs in a hospital beyond 150 days.
Provided at no charge. No premium.
Question 10
What does Medicare Part B cover and how do you pay for it?
CORRECT ANSWER
Covers physician services
Premium charge! If you're eligible for Part A, you've got Part B, BUT FOR A CHARGE!
Question 11
What makes you eligible for Medicare coverage?
CORRECT ANSWER
Over 65 and in a covered occupation meaning you're getting social security.
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@THE STUDY VAULT
, Question 12
What situations are exempt from the 10% penalty on qualified plan distributions made
before age 59 ½?
CORRECT ANSWER
Distributions because of death and annuitized payments based on an individual's
remaining life expectancy.
Question 13
What does "Currently" insured mean and what would you qualify for?
CORRECT ANSWER
6 quarters of coverage (so about 2 years paying into social security) What would you
qualify for? ONLY 2 THINGS! Survivor's benefit for dependent child and Lump-sum death
benefit spouse or child. Your spouse doesn't get anything!
Question 14
What does "Fully" insured mean and what would you qualify for?
CORRECT ANSWER
40 quarters of coverage (10 YEARS paying into social security!) What would you qualify for?
Everything. Survivor's benefit for your dependent parent who is age 62 or older. Survivor's
benefit for Maxine's spouse or former spouse who is age 60 or older. Dependent child
benefits.
Question 15
How are net LONG term capital gains taxed?
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@THE STUDY VAULT
