Investments And Plan Portfolios
8 Questions
| Total Attempts: 178
Questions and Answers
- 1.Target Date or Life Cycle Funds must be manually adjusted by the individual as he or she grows older to limit risk prior to retirement
- A.
True
- B.
False
- 2.Mutual funds raise money by selling shares of the Fund to the public
- A.
True
- B.
False
- 3.The benefits of mutual funds include (Select all that Apply)
- A.
Diversification
- B.
Professional money management
- C.
Liquidity
- D.
Front Load Fees
- E.
Overall reasonable fees/value for the average investor
- 4.OFA refers to the ability to provide plans with a dynamic line up of investments, as opposed to a fixed portfolio while plans who chose an IPS rely on ADP to identify, select, and monitor investment funds available to them
- A.
True
- B.
False
- 5.An FA or Financial Advisor is a licensed person that offers guidance and advice to
- A.
ADP
- B.
Participants and Plan Administrators
- C.
Other Advisors
- D.
Participants only
- E.
Plan Administrators only
- 6.ADP must give defaulted participants an annual notice about their defaulted accounts
- A.
True
- B.
False
- 7.(QDIA) Qualified Default Investment Alternative (Select all that Apply)
- A.
Is exclusive to ADP
- B.
Allows a plan to choose an alternate investment (besides the money market or stable value) for defaulted participants, including Automatic Enrollment arrangements.
- C.
Was a part of the Pension Protection Act of 2006
- D.
Gives the company “protection” from defaulted participants suing them for investment losses.
- 8.QDIA Investment types can include
- A.
Target Date Retirement Funds
- B.
Balanced Funds
- C.
Professionally Managed Funds
- D.
All of the Above
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