FPQP

Employee elective deferrals to a 401(k) may be subject to which of the following vesting schedules? A) None of these B) Immediate vesting C) Three-year cliff vesting D) Two- to six-year graded vesting - Answer B) Immediate vesting Which of the following retirement plan distributions is subject to 20% withholding? A) A rollover of IRA assets from one IRA to another B) None of these C) A direct transfer of IRA assets between IRA custodians D) A lump sum distribution from a 4...

Under the coinsurance provision in a medical insurance policy the insured is required to pay - Answer a percentage of the covered loss up to a stated amount. Which of the following statements regarding the elimination period of a disability insurance policy is CORRECT? - Answer All else being equal, the longer the elimination period, the lower the premium. Which of the following situations would be best suited for a decreasing term insurance policy (a policy that provides a lower dea...

Which of the following taxes is NOT allowed as an itemized deduction? A) Property taxes B) Local income taxes C) State income taxes D) FICA taxes - Answer D) FICA taxes Explanation FICA (Social Security) taxes are not allowed as an itemized deduction. The maximum deduction for all state and local taxes, including property taxes, is $10,000 per year. Which of the following circumstances would require most taxpayers to file a federal income tax return? A) The taxpayer elects to become...

Properly stated financial goals should contain each of these factors - Answer amount, time, purpose r=the front-end ratio (debt-to-income) should be - Answer less than our equal to 28% of gross income For a high severity high probability event, what should be the preferred risk management strategy - Answer risk reduction and risk avoidance An investment of $6,00 earning 6.4% per year will be worth ___ in 4 years - Answer $7,690 The ethical principles of diligence for the ...

Which of the following is a characteristic of properly stated financial goals? - Answer Definite The current yield from already invested assets is first identified in which step in the financial planning process? - Answer Gathering client data, including goals What is correct about financial planners? - Answer It is up to clients to determine whether someone using the title of "financial planner" is really a financial planner or not. What is a requirement of being an FPQP...

Which of the following does the Federal Reserve use to control the money supply? 1. Adjusting the discount rate 2. Open market operations 3. Fiscal policy A) 2 and 3 B) 1 only C) 1 and 2 D) 2 only - Answer C) 1 and 2. The Federal Reserve can control the money supply by adjusting the discount rate. For example, a higher discount rate discourages banks from lending money and reduces the amount of money in circulation. The Federal Reserve also uses open market operations to control the ...