investment couseling

Question 1

What are the three steps to investment counseling

Answer 1

save as much as possible
invest appropriately
review account preferences

Question 2

find plan’s matching contribution and formula

Answer 2

case notes, then plan/sources and deferrals, click on ER match type 8

Question 3

Where can you find the plan’s Maximum allowable contribution?

Answer 3

transactions/contributions and future allocations

Question 4

where can you find if a plan has Auto Increase

Answer 4

transactions/contributions and future allocations

Question 5

three different target rate to discuss

Answer 5

10% should be primary target,
5% or rate that maximizes company matching,
15% or annual allowable maximum

Question 6

what can participant use to simplify increasing contributions yearly?

Answer 6

Auto Increase/SaveXpress

Question 7

if no auto increase on plan, what are some dates to suggest to remind ppt to increase savings

Answer 7

daylight savings, annual increase/work anniversary, birthday, January 1, Christmas time, set reminder on cell/smart phone, tax time

Question 8

Prevents ppt from misusing asset allocation fund or service by removing the decision of how much money to invest in the fund or service because it forces all of the assets to follow a chosen strategy

Answer 8

total account solution

Question 9

The target asset allocation remains static

Answer 9

Risk-based Asset allocation

Question 10

Once a participant inputs all their information, OnTrack Online generates a retirement outlook composed of what 3 pieces of information

Answer 10

a Weather Icon depicting how close a ppt Estimate Income is to their Retirement Income Goal

Question 11

When will an alternative retirement age be reflected for a ppt on the Ontrack report?

Answer 11

When the ppt has 10 years or less to retirement age stated on the report and it is necessary along with increasing their contribution rate to improve their Retirement Outlook.

Question 12

Does the How Much to Save Tool and the OnTrack Report offer alternative investment strategy?

Answer 12

No

Question 13

What two pieces of information does a ppt have to input once the “turn on” px to determine their initial asset allocation

Answer 13

retirement year

risk preference

Question 14

Transamerica creates what versions of PX?

Answer 14

retirement, lifetime

Question 15

Transamerica offers most of its pooled investment options in four varieties.

Answer 15

Mutual funds,
Seperate accounts,
variable annuities,
Collective trust

Question 16

State the similarities of each of the TRS investment options

Answer 16

Same portfolio securities
same investment objective
same investment manager
same fund provider

Question 17

State the differences of each of the TRS investment options

Answer 17

Different Expense Ratio
Different investor/participants
different prospectus
different annualized returns
different unit value

Question 18

what additional category does Transamerica use to classify funds that are neither singularly stock or bond funds?

Answer 18

Multi-Asset/other

Question 19

All mutual funds have an expense ratio How is the expense ratio “paid” by the ppt

Answer 19

reduces performance

Question 20

profit paid in dividend

Answer 20

income

Question 21

the increase in share price

Answer 21

growth

Question 22

which of the mutual fund fees are not visible to the ppt?

Answer 22

Management/Distribution Fees

Question 23

E B R I

Answer 23

Employee Benefits Research Institute

Question 24

EBRI states this percentage of people will run out of money before they die

Answer 24

47%

Question 25

Tools for Do It Yourself

Answer 25

OnTrack Online
Fund Profiles
Auto Rebalance

Question 26

background information need to gather at beginning of call

Answer 26

know the plans matching formula
know plan's maximum allowable contribution
is auto increase available?
ppt age
how often they are paid

Question 27

on track on line generates these three pieces of information

Answer 27

weather icon
estimated income
retirement income goal

Question 28

5 pieces of information required to generate an on track report

Answer 28

desired contribution amount
desired retirement age
annual salary & bonus
state of residence
gender