CRPC Practice Exam #2 Latest Update Questions and 100% Verified Correct Answers Guaranteed A+ At First Attempt
A "rising equity glidepath" typically will lead to a ________ equity exposure over one's total lifetime. - CORRECT ANSWER: Decreased. Remember: RISING = decrease.HIGH = Low.
Are withdrawals from an IRA to pay for qualified expenses exempt from the 10% early
withdrawal penalty? - CORRECT ANSWER: Yes.
Assume that a worker's Social Security full retirement age is 66. What percentage of the worker's full retirement age benefits will be paid to her at age 62? - CORRECT ANSWER: A worker can begin receiving Social Security retirement benefits at age 62, but at a 25% reduction from the full amount that would be received at full retirement age
- So 100% benefits minus the reduction of 25% = 75%.
Remember 62 = 25% reduction!
Dan, age 58 has decided to being periodic withdrawals from his IRA. In order to avoid the 10% early withdrawal penalty, distributions must continue until at least what age? - CORRECT ANSWER: Age 63. Distributions must continue for at least five years or until the individual has reached 59.5, whichever is later.
Financial statement ratios are part of what kind of analysis? - CORRECT ANSWER:
Fundamental analysis.
How do you calculate the inflation-adjusted rate of return? - CORRECT ANSWER: 1
plus the Rate of Return
Divided by
- plus the interest rate
minus one
multiplied by 100
How much can a single person exclude on the sale of their home? - CORRECT
ANSWER: Up to $250,000.00, provided the home has been used as the principal
residence for two of the previous five years.
A partial exclusion is available if the two year rule is not met due to health, job or other unforeseen circumstances. 1 / 2
How you calculate the weighted beta of a portfolio? - CORRECT ANSWER: You
multiply the weight times the beta for each stock, then you add those numbers up together.
If you take a hardship distribution from your TSA, what would be the tax consequences?
- CORRECT ANSWER: Hardship withdrawals that are used to pay certain medical
expenses would be subject to income tax but not to the 10% tax penalty.
In order to be considered a "qualified" policy, a long-term care policy must provide for
what? - CORRECT ANSWER: Nonforfeiture options, cognitive impairment must be
covered, it must be guaranteed renewable and conform to the National Association of Insurance Commissioners Model Act.
Intestate property passes by means of what? - CORRECT ANSWER: The probate
process. It is NOT a will substitute. Property that passes by the laws of intestate succession is not affected y any will provisions. Intestate succession statues give property to many other family members before transferring it to the state.
Moving averages, graphs and statistics regarding the supply and demand of stocks are
an example of what kind of analysis? - CORRECT ANSWER: Technical analysis.
Name a few things that Medicare Part A covers. Hint: Remember; Part AH! HAhspital! - CORRECT ANSWER: Post-hospital home health care - 100 home health care visits per benefit period and expenses such as in patient hospital care, post hospital skilled nursing care, post hospital home health care, psychiatric hospital care and blood in excess of three pints.
Name a few things that Medicare Supplemental Insurance (Part B) provides coverage for. - CORRECT ANSWER: Provides coverage for physicians services and the following that are not already covered by Part A: Home health care, medical services, therapist, ambulances and certain costs for blood that are no covered in Part A
Net short-term capital gains are treated as what type of income? - CORRECT
ANSWER: Ordinary. They are subject to the taxpayers regular marginal tax rate.
Nick wants to maintain the purchasing power of $75,000 (in today's dollars) in retirement. If inflation continues to average 3.5%, approximately what amount will Nick need in 20 years to equal the purchasing power of $75,000 today? (Round your answer.) - CORRECT ANSWER: If you know the Rule of 72, and you divide 3.5 into 72, you arrive at the number 20, which is the number of years it will take for a sum to double. With a calculator, you can solve for the future value of $75,000 over 20 years at 3.5%.
Keystrokes: 20 N, 3.5 I/YR, 75,000 PV, FV = $149,234; rounded = $150,000
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