CSS Financial Planning & Retirement Solutions 3

Question 1

A widow age 60 wants to know when she can receive survivor benefits on her deceased spouse's Social Security record. What is the minimum age?

Accepted Answer

60 (standard minimum)

Answer

A surviving spouse can begin collecting Social Security survivor benefits as early as age 60, or age 50 if disabled.

Question 2

Which type of annuity pays a guaranteed income for the life of the annuitant AND a second person, with payments continuing until both have died?

Accepted Answer

Joint and survivor annuity

Answer

A joint and survivor annuity provides income for the lifetimes of two people, typically spouses, and is commonly offered as a pension payout option.

Question 3

What is the 'four percent rule' in retirement income planning?

Accepted Answer

Withdraw 4% of the initial portfolio in year one, then adjust for inflation, to target a 30-year income period

Answer

The 4% rule, derived from the Trinity Study, suggests withdrawing 4% of the initial portfolio value in the first year of retirement and adjusting for inflation annually to sustain withdrawals for 30 years.

Question 4

Which account type allows a disabled individual to save money without affecting eligibility for government benefits like SSI and Medicaid?

Accepted Answer

ABLE Account (529A)

Answer

ABLE accounts (Achieving a Better Life Experience, IRC §529A) allow individuals with disabilities to save up to a certain limit annually without jeopardizing eligibility for means-tested benefits.

Question 5

When evaluating a defined benefit pension, which option typically provides the HIGHEST monthly payment to the retiree but NO protection for a surviving spouse?

Accepted Answer

Life-only (single life annuity)

Answer

The life-only or single life annuity option pays the maximum monthly benefit because it stops at the retiree's death with no survivor benefit.

(CSS) Certified Senior Specialist Practice Test

(CSS) Certified Senior Specialist Practice Test

CSS Financial Planning & Retirement Solutions 3