Practice Test Answers

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What is a disadvantage of the whole life insurance option?

A
lower growth potential
B
market risk
C
no death benefit
D
flexible premiums
7

Which factor is a disadvantage of an annuity?

A
tax-deferred growth of investments
B
guaranteed income for life
C
no limits on contributions
D
high penalties for early withdrawal
10

An individual's PIA is $2,800 If they start receiving benefits at age 62+2 months, how much will they receive monthly?

A
2 dollars comma 800 point 0 0
B
1 dollars comma 960 point 0 0
C
1 dollars comma 974 point 4 0
D
1 dollars comma 982 point 4 0
11

Based on the table, which group most needs improved retirement planning?

A
Hispanic people
B
Asian people
C
people ages 18–29
D
people with disabilities

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Practice Test Answers — Advanced Financial…