FFC FFC Retirement and Estate Planning

Question 1

At what age must traditional IRA and 401(k) account holders begin taking Required Minimum Distributions (RMDs) under current U.S. law (SECURE 2.0)?

Accepted Answer

73

Answer

70½

Answer

72

Answer

75

Question 2

What is the primary function of a revocable living trust in estate planning?

Accepted Answer

To allow assets to pass to heirs without going through probate

Answer

To reduce estate taxes below the federal exemption threshold

Answer

To permanently protect assets from creditors

Answer

To replace the need for a will entirely

Question 3

Which Social Security claiming strategy generally maximizes lifetime benefits for a healthy individual who can delay claiming?

Accepted Answer

Delaying until age 70 to maximize monthly benefit

Answer

Claiming at age 62 for the longest benefit period

Answer

Claiming at full retirement age for a moderate benefit

Answer

Claiming spousal benefits at 62 then switching to own at 70

Question 4

What document grants a designated person the authority to make financial decisions on behalf of another if they become incapacitated?

Accepted Answer

Durable power of attorney

Answer

Revocable living trust

Answer

Last will and testament

Answer

Beneficiary designation form

Question 5

In retirement planning, what does the '4% rule' suggest?

Accepted Answer

Withdraw no more than 4% of your portfolio in the first year of retirement, adjusting for inflation thereafter

Answer

Invest 4% of income into retirement accounts annually

Answer

Keep 4% of your portfolio in cash equivalents at all times

Answer

Allocate 4% of the portfolio to international investments

Question 6

Which type of life insurance provides a death benefit and also accumulates a cash value that the policyholder can borrow against?

Accepted Answer

Whole life insurance

Answer

Term life insurance

Answer

Group term insurance

Answer

Accidental death and dismemberment insurance