This quiz is part of LFE Institute's CWMC (Certified Workplace Money Coaching) course. It will test your proficiency in the Investment & Retirement Module (Module 19) of the program. The questions are all multiple choice, and are designed to be a review of this Module. Let LFE know when you've successfully completed this test and are ready to begin the next Module.
Correct answers required for passing grade: 13/15
Mutual funds
Load
No-load
Load-Bearing Wall
Front-end load
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Explains risk tolerance clearly so that the client understands it
Asks about the investments the client currently has
Makes an immediate recommendation to save the client time
Discusses the pros and cons of maxing out a 401(k) plan before investing in other investment options
Clarifies the client’s financial goals
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A thesaurus
Financial Advisor's Desk Reference
A Blue Book
Bartlett’s Famous Quotations
The World Almanac
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Fixed Annuity
Legislative Annuity
Variable Annuity
Immediate Annuity
Equity-Index Annuity
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CPA: Certified Public Accountant
PFS: Personal Financial Specialist (CPAs who specialize in the financial planning area)
CFP: Certified Financial Planner
CLU: Controlled Legal Underwriter (Insurance agent)
CFA: Chartered Financial Analyst
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Continue to work as long as possible during their retirement years
Find a less expensive area with lower cost-of-living, taxes, housing, and healthcare costs
Consider a reverse mortgage to generate additional living income after age 70–75
Downsize the cost of their home and car, and eliminate as many long-term debts until they are absolutely needed
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The employee’s age, specifically, how many years until retirement
The employee’s risk tolerance
If the employee is under the age of 50, he/she should have at least 50% in equity funds
The employee should be conservative; he/she can’t afford to invest retirement dollars in anything that could lose value
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Avoid emotional investing
Invest heavily in company stock if the employee has inside information and knows they are doing well
Invest in Life Cycle funds, fixed investments, balance funds, and a fixed income investment; this is a good way to diversify
Time the market by watching the news everyday and react accordingly; it’s the safest way to invest for the long term
All of the above
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What credentials does your spouse have?
Have you been convicted of a felony or seriously reprimanded by the SEC or governing body of your field?
What military service background, if any, do you have?
How are you compensated?
May I have names of other clients and the amount you are investing for them?
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High commissions
Significant early withdrawal penalty
Does not grow tax deferred like a 401(k)
Can only invest $5,000/year if the investor is under the age of 50
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Withdraw the money and pay down high-interest credit card debts
Use the money to buy a new home if housing values are low; it’s one of the safest investments over the long term
Leave the money in the current employer if the plan is doing well
Have the employer write a check for the balance in the account and use the 60-day time period to find a good IRA option
All of the above could be good strategies
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Class A shares are sold with an up-front sales charge
Class B shares are sold without an up-front sales charges but carry higher annual expenses for a fixed period
Class 529 shares were created to help investors save for higher education expenses through a tax-advantaged account
All of the above are true
None of the above are true
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