Explanation:
A living will, also known as an advance directive, is a legal document that specifies a person's preferences regarding medical treatment in the event they are unable to communicate their wishes. It becomes applicable when the declarant is in a terminal or similar condition, meaning they are incapacitated and near the end of life with no hope of recovery. In such circumstances, medical providers are required to comply with the instructions outlined in the living will. If the declarant is not in such a condition, the living will may not be applicable, and medical providers may not be obligated to follow its directives.
Explanation:
The duty to disclose requires financial professionals to fully disclose all material facts about investments to their clients, including any risks involved, regardless of whether the investments are backed by the US government or other entities. This duty ensures that clients are informed about the potential risks and rewards of their investments and can make well-informed decisions based on this information.
Explanation:
A distribution from a 403b plan that is made pursuant to a Qualified Domestic Relations Order (QDRO) is not subject to the 10% premature withdrawal penalty. A QDRO is a court order typically issued in divorce proceedings that assigns a portion of the participant's retirement account to an alternate payee, such as a former spouse or dependent. Since QDRO distributions are made to satisfy legal obligations, they are exempt from the early withdrawal penalty.
Explanation:
Medicaid is the government health insurance program designed to provide coverage for individuals with low income or minimal assets, regardless of their age or employment status. It is jointly funded by the federal and state governments and administered by the states. Medicaid covers a wide range of medical services, including doctor visits, hospital stays, prescription drugs, and long-term care, to eligible individuals and families who meet the income and asset requirements set by each state.
Explanation:
A worker can begin receiving Social Security retirement benefits at age 62 but at a reduced rate from the full amount that would be received at full retirement age (66 in this case). The reduction for starting benefits at age 62 is typically 25%. So, the worker will receive 75% of their full retirement age benefits at age 62.
Explanation:
The second step in the retirement planning process is to gather client data, including understanding their goals, expectations, financial situation, and any other relevant information. This step is crucial for creating a comprehensive and personalized retirement plan that aligns with the client's needs and objectives.
Explanation:
Financial statement ratios, such as liquidity ratios, profitability ratios, and leverage ratios, are used in fundamental analysis. Fundamental analysis involves evaluating a company's financial health, performance, and intrinsic value by analyzing its financial statements, business operations, and economic factors. These ratios help assess various aspects of a company's operations and financial position.
Explanation:
Technical analysis involves using moving averages, graphs, and statistics to study the supply and demand of stocks and predict future price movements. It focuses on historical price and volume data, rather than the intrinsic value of the stock.
Explanation:
The first step in the retirement planning process is to establish and define the client-counselor relationship. This includes setting the scope of the engagement, understanding the roles and responsibilities, and disclosing the counselor's compensation arrangement. This step ensures that both parties are clear about the expectations and the nature of the professional relationship.
Explanation:
Long Term Care (LTC) services typically come in two main forms: personal care and skilled care. Personal care includes assistance with activities of daily living (ADLs) such as bathing, dressing, and eating, while skilled care involves medical services provided by licensed healthcare professionals such as nurses or therapists. Understanding the distinction between personal care and skilled care is important for determining the appropriate level of care needed and the associated costs for LTC services.
Explanation:
To calculate the weighted beta of a portfolio, you multiply the weight (proportion of the portfolio's total value) of each stock by its beta (a measure of its volatility relative to the market) and then add these values together. This gives you the overall beta for the portfolio, reflecting its sensitivity to market movements.
