Investments And Plan Portfolios

8 Questions | Total Attempts: 158

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Investments And Plan Portfolios

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. 
     (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. 

  • 7. 
    QDIA Investment types can include
    • A. 

      Target Date Retirement Funds

    • B. 

      Balanced Funds

    • C. 

      Professionally Managed Funds

    • D. 

      All of the Above

  • 8. 
    ADP must give defaulted participants an annual notice about their defaulted accounts
    • A. 

      True

    • B. 

      False

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