CFG Financial Planning for Older Adults 4 — Questions and Answers
Question 1: At what age does Medicare eligibility typically begin for most Americans?
- 62
- 65 (Correct answer)
- 67
- 70
Correct answer: 65
Medicare eligibility begins at age 65 for most Americans who have worked and paid Medicare taxes for at least 10 years.
Question 2: Which cognitive condition is characterized by a gradual decline in memory and other cognitive functions sufficient to interfere with daily life?
- Delirium
- Mild cognitive impairment
- Alzheimer's disease (Correct answer)
- Depression
Correct answer: Alzheimer's disease
Alzheimer's disease is the most common form of dementia, causing progressive decline in memory and cognitive function that interferes with daily activities.
Question 3: What is the Medicaid 'look-back period' for most asset transfers?
- 12 months
- 24 months
- 36 months
- 60 months (Correct answer)
Correct answer: 60 months
Medicaid uses a 60-month (5-year) look-back period for most asset transfers to prevent applicants from gifting assets to qualify for benefits.
Question 4: A client's long-term care policy has a 90-day elimination period. This means:
- The policy expires after 90 days of care
- Benefits do not begin until 90 days of qualifying care have elapsed (Correct answer)
- The insurer can cancel the policy after 90 days of claims
- Care must be pre-authorized 90 days before it begins
Correct answer: Benefits do not begin until 90 days of qualifying care have elapsed
An elimination period acts like a deductible in time; the insured must receive qualifying care for 90 days before the insurance company begins paying benefits.
Question 5: Which approach to retirement income planning segments assets into 'buckets' based on time horizon?
- Total return approach
- Bucket strategy (Correct answer)
- Systematic withdrawal plan
- Liability matching
Correct answer: Bucket strategy
The bucket strategy divides retirement assets into short-, medium-, and long-term buckets with different investment allocations matching each time horizon.
Question 6: Which of the following is a primary indicator of elder financial exploitation rather than normal gift-giving?
- An older adult making a charitable donation to a church they've attended for 20 years
- Large, unexplained withdrawals from an elder's account made by a new acquaintance (Correct answer)
- An older adult purchasing a new car with retirement savings
- An older adult paying for a grandchild's college tuition
Correct answer: Large, unexplained withdrawals from an elder's account made by a new acquaintance
Unexplained large withdrawals by a new acquaintance are a classic red flag of elder financial exploitation, unlike voluntary gifts to established relationships.
Question 7: For a single individual in 2024, Social Security benefits become 85% taxable when combined income (AGI + nontaxable interest + 50% of SS benefits) exceeds:
- $25,000
- $32,000
- $34,000 (Correct answer)
- $44,000
Correct answer: $34,000
For single filers, up to 85% of Social Security benefits are taxable when combined income exceeds $34,000.
CFG Financial Planning for Older Adults 4
At what age does Medicare eligibility typically begin for most Americans?