HS-354 Final Exam questions &
answers rated A+
Which of the following statements about Social Security claiming strategies are correct?
I. If the husband and wife are the same age, the husband is in bad health, the wife is in excellent
health and the wife is only entitled to a spousal benefit, the couple will still benefit by deferring
the husband's workers benefits even though he is in bad health.
II If the husband and wife are the same age, the wife is in better health, both are entitled to
workers benefits and the husband has a significantly higher PIA, the couple is likely to benefit
more by deferring the wife's benefit than by deferring the husband's benefit.
A) I only
B) II only
C) Both I and II
D) Neither I nor II - correct answer ✔✔A) I only
The answer is A. Statement II is incorrect becuase the couple benefits more by deferring the
husband's benefit since this is a benefit that will be paid for a joint lifetime.
Which of the following statements about "retirement age trends" are correct?
,I. The labor force participation of men and women over the age of 65 is increasing.
II. The number of defined-contribution plans and plan assets is continuing to grow while the
number of pension plans remains relatively steady.
A) I only
B) II only
C) Both I and II
D) Neither I nor II - correct answer ✔✔C) Both I and II
the answer is C. Both statements are correct.
After a determination that an individual is disabled for purposes of Social Security workers
disability benefits, benefits will begin____ after the date the disability began.
A) immediately
B) after a 5-month waiting period
C) after a one-year waiting period
D) after a 24-month waiting period. - correct answer ✔✔B) After a 5 month waiting period
The answer is B. Disability benefits begin after a 5 month waiting period.
, An annuity contract purchased by Sarah in 2014 was gifted to her fried Kara as a gift in 2020. IN
202 Sarah ahs a 50,000 basis in the annuity contract and the annuity contract has a cash
surrender value of 55,000. What is Kara's basis in the annuity after it is gifted to her?
A) Kara has a basis of $) because the annuity was a gift.
B) Kara has a basis of $5,000
C) Kara has a basis of $50,000
D) Kata has a basis of $55,000 - correct answer ✔✔D) Kara has a basis of $55,000
The answer is D. Kara will have the basis of the cash surrender value of the annuity contract.
Bengen's 4% safe withdrawal rate should be reduced by approximately how much to reflect a
1% asset management fee?
A) Zero percent
B) One-third of one percent
C) Two-thirds of one percent
D) One Percent - correct answer ✔✔B) One-third of one percent.
answers rated A+
Which of the following statements about Social Security claiming strategies are correct?
I. If the husband and wife are the same age, the husband is in bad health, the wife is in excellent
health and the wife is only entitled to a spousal benefit, the couple will still benefit by deferring
the husband's workers benefits even though he is in bad health.
II If the husband and wife are the same age, the wife is in better health, both are entitled to
workers benefits and the husband has a significantly higher PIA, the couple is likely to benefit
more by deferring the wife's benefit than by deferring the husband's benefit.
A) I only
B) II only
C) Both I and II
D) Neither I nor II - correct answer ✔✔A) I only
The answer is A. Statement II is incorrect becuase the couple benefits more by deferring the
husband's benefit since this is a benefit that will be paid for a joint lifetime.
Which of the following statements about "retirement age trends" are correct?
,I. The labor force participation of men and women over the age of 65 is increasing.
II. The number of defined-contribution plans and plan assets is continuing to grow while the
number of pension plans remains relatively steady.
A) I only
B) II only
C) Both I and II
D) Neither I nor II - correct answer ✔✔C) Both I and II
the answer is C. Both statements are correct.
After a determination that an individual is disabled for purposes of Social Security workers
disability benefits, benefits will begin____ after the date the disability began.
A) immediately
B) after a 5-month waiting period
C) after a one-year waiting period
D) after a 24-month waiting period. - correct answer ✔✔B) After a 5 month waiting period
The answer is B. Disability benefits begin after a 5 month waiting period.
, An annuity contract purchased by Sarah in 2014 was gifted to her fried Kara as a gift in 2020. IN
202 Sarah ahs a 50,000 basis in the annuity contract and the annuity contract has a cash
surrender value of 55,000. What is Kara's basis in the annuity after it is gifted to her?
A) Kara has a basis of $) because the annuity was a gift.
B) Kara has a basis of $5,000
C) Kara has a basis of $50,000
D) Kata has a basis of $55,000 - correct answer ✔✔D) Kara has a basis of $55,000
The answer is D. Kara will have the basis of the cash surrender value of the annuity contract.
Bengen's 4% safe withdrawal rate should be reduced by approximately how much to reflect a
1% asset management fee?
A) Zero percent
B) One-third of one percent
C) Two-thirds of one percent
D) One Percent - correct answer ✔✔B) One-third of one percent.
