9. Educate a Client about the Financial Aspects of Retirement and Estate Planning (9%)

Question 2

What is the primary purpose of a will in estate planning?

A. To distribute assets to beneficiaries after death
B. To avoid paying estate taxes
C. To bypass probate
D. To manage finances during a person’s lifetime

Answer 2

A. To distribute assets to beneficiaries after death

A will is a legal document used to distribute a person’s assets after death.

Question 3

What is a defined benefit plan?

A. A plan where retirement benefits are based on investment performance
B. A retirement plan where benefits are calculated based on salary and years of service
C. A plan with a fixed employer contribution
D. A plan that only offers tax-deferred growth

Answer 3

B. A retirement plan where benefits are calculated based on salary and years of service

Defined benefit plans provide predetermined retirement benefits based on factors like salary and tenure.