Chapter 10 - exam 3

What are Defined Benefit Plans vs Defined Contribution Plans?

Who is a 401(k), 403(b), and 457 plan for?

Discuss the wage replacement rate.

What retirement savings rate should you aim for by age and on average?

What does it mean to have a tax-deferred account and what is an example of one?

What are the benefits of an IRA?

What is a Roth IRA and what are the policies investing in it?

What are the penalties for taking money out of a retirement account early?

What are some exceptions for withdrawing money from an IRA without penalty?

At what age can you begin IRA withdrawals without penalty?

Describe the “file cabinet” approach to asset allocation within multiple accounts.

What are a few key lessons to ensure you reach your retirement goals?

Describe the major ways to title property ownership.

What is the difference between a payable upon death (POD) account vs. a transfer on death (TOD) account?

What is the purpose of having a will?

What are common types of wills for families and when do you use them?

What is a living will?

What are the primary differences between the two types of living wills (revocable and irrevocable)?

What is a testamentary will?

What is an executor?

What is the probate process?

What are the four ways to prevent probate?

What is the purpose of the power of attorney?

What does “durable” power of attorney mean?

What is a healthcare proxy?

What is a trust and why do people have them?

Who are the main people involved in a trust? (i.e., the grantor, the trustee, beneficiary)

What is the gifting allowance for the current year?

What is the estate tax threshold for the current year?

What is the state inheritance tax and who pays it?

Why won’t generational health last?

Define a financial counselor, financial planner, and financial advisor.

What is the difference between a fiduciary standard vs a suitability standard?