CFG Financial Planning for Older Adults 2

Question 1

A 72-year-old client wants to delay Social Security benefits. What is the maximum age at which delayed retirement credits stop accruing?

Accepted Answer

Age 70

Answer

Delayed retirement credits stop accruing at age 70, so there is no financial benefit to delaying Social Security beyond that age.

Question 2

Which Medicare part covers outpatient prescription drugs for beneficiaries who choose to enroll?

Accepted Answer

Medicare Part D

Answer

Medicare Part D provides outpatient prescription drug coverage through private insurance plans approved by Medicare.

Question 3

An older adult moves into an assisted living facility and needs to spend down assets for Medicaid eligibility. Which asset is generally considered exempt?

Accepted Answer

Primary residence (if spouse still lives there)

Answer

A primary residence is generally exempt from Medicaid spend-down requirements when a community spouse continues to live in it.

Question 4

What is the primary purpose of a Qualified Longevity Annuity Contract (QLAC)?

Accepted Answer

To defer income and RMDs to advanced old age

Answer

A QLAC allows a portion of IRA funds to be used to purchase a deferred annuity that starts income at a later age, reducing RMDs in the meantime.

Question 5

Which of the following best describes the 'sequence of returns' risk in retirement?

Accepted Answer

The risk that poor early-retirement returns permanently deplete a portfolio

Answer

Sequence of returns risk refers to the danger that negative returns early in retirement, combined with withdrawals, can permanently impair a portfolio even if long-term averages are acceptable.

(CFG) Certified Financial Gerontologist Practice Test

(CFG) Certified Financial Gerontologist Practice Test

CFG Financial Planning for Older Adults 2