Income and Asset Protection

Question 1

risk that can be used to hold legal title to your assets and provide a mechanism to manage them

Answer 1

Speculative Risk

Question 2

can be used to hold legal title to your assets and provide a mechanism to manage them

Answer 2

Pure Risk

Question 3

can be used to hold legal title to your assets and provide a mechanism to manage them

Answer 3

can be used to hold legal title to your assets and provide a mechanism to manage them

Question 4

can be used to hold legal title to your assets and provide a mechanism to manage them

Answer 4

Deductible

Question 5

protects the lender – not you – in the event that you fall behind on your payments on your mortgage

Answer 5

Private Mortgage Insurance

Question 6

a residential service contract that covers the cost of maintaining household systems or appliances for a set period.

Answer 6

Home Warranty Insurance

Question 7

an accounting technique used to periodically lower the book value of a loan or an intangible asset over a set period of time

Answer 7

Amortization

Question 8

tax-sheltered annuity plan or TSA) is a retirement plan offered by public schools and certain charities

Answer 8

403b

Question 9

a defined contribution plan where an employee can make contributions from his or her paycheck either before or after-tax, depending on the options offered in the plan.

Answer 9

401k

Question 10

designed to periodically increase an employee’s contribution rate to their 401(k) plan. For example, if an employer sets the automatic escalation rate at 1% a year, every year, an employee’s contribution rate will increase by 1%

Answer 10

Automatic Escalation

Question 11

the acceleration of benefits that employees receive as they increase the length of their service to an employer.

Answer 11

Graduated Vesting

Question 12

if you leave your job and go to work for another employer, you can transfer the value of your benefits to your new employer’s retirement plan

Answer 12

Portability

Question 13

is a type of nonqualified, tax-advantaged deferred-compensation retirement plan

Answer 13

457b