32.
|
Your security basket protects you and your family from the unexpected. 107
|
|
|
|
33.
|
Your dream basket enables you to fulfill deeply held desires that make life worthwhile. 107
|
|
|
|
34.
|
Your security basket may buy you the time you need to get back on your feet. 108
|
|
|
|
35.
|
A properly funded living trust must always go through probate. 112
|
|
|
|
36.
|
A revocable living trust: 113
|
|
must always go through probate
|
|
is difficult to set up
|
|
can be changed whenever you like throughout your lifetime
|
|
all of the above
|
|
|
|
37.
|
The chief advantage to term insurance is that it allows you to build 'cash value'. 124
|
|
|
|
38.
|
A type of permanent insurance is: 125
|
|
whole life
|
|
universal life
|
|
variable universal life
|
|
all of the above
|
|
|
|
39.
|
According to statistics, one out of every eight people will suffer a serious disability. 128
|
|
|
|
40.
|
Medicare is meant to cover: 133
|
|
acute care needs
|
|
custodial care
|
|
welfare recipients
|
|
all of the above
|
|
|
|
41.
|
A defined contribution plan used to be known as a Keogh plan. 139
|
|
|
|
42.
|
In 2006, the maximum allowable contribution to a traditional IRA for individuals 49 or younger is: 147
|
|
$3,000
|
|
$4,000
|
|
$4,500
|
|
$5,000
|
|
|
|
43.
|
The current rule of thumb is that if you are more than ten years from retirement, you'll come out ahead with a Roth IRA as opposed to a traditional IRA. 147
|
|
|
|
44.
|
For a business owner, the disadvantage of a SEP IRA is: 151
|
|
it's difficult to set up
|
|
it requires tremendous paperwork
|
|
contributions made to employees are immediately 100% vested
|
|
all of the above
|
|
|
|
45.
|
An advantage of a money-purchase plan over a SEP IRA is: 152
|
|
with a money-purchase plan, you're allowed to create a vesting schedule for contributions to employees
|
|
your annual contribution is fixed with a money-purchase plan
|
|
a SEP IRA is easier to set up
|
|
all of the above
|
|
|
|
46.
|
Rule No. 3 says it's wise to borrow from your retirement plan when you're using the proceeds to pay off credit card debt. 166
|
|
|
|
47.
|
You should never ever put your IRA in the name of a trust or make your beneficiary of the IRA a trust because upon your death, your spouse loses the ability to do a spousal IRA rollover. 167
|
|
|
|
48.
|
Advantages to investing in T-bills include: 178
|
|
backing by the US government
|
|
exemption from state tax
|
|
liquidity
|
|
all of the above
|
|
|
|
49.
|
Interest earned from municipal bonds is exempt from both state and federal income taxes. 181
|
|
|
|
50.
|
Interest earned from these types of bonds is exempt from federal income tax: 181
|
|
treasury notes
|
|
corporate bonds
|
|
municipal bonds
|
|
all of the above
|
|
|
|
51.
|
The advantages of a variable annuity include; 194
|
|
tax deferred growth
|
|
no income limitations at purchase
|
|
guaranteed principal to beneficiaries
|
|
all of the above
|
|
|
|
52.
|
During your first meeting with a financial planner, you should do most of the talking. 200
|
|
|
|
53.
|
A U4 is a record kept by the National Association of Securities Dealers on every licensed financial professional in the US. 204
|
|
|
|