Retirement Planning (2024)

Question 1

Capital preservation model

Answer 1

Assumes at life expectancy, as estimated in the annuity method, the client has exactly the same account balance as they started with our retirement. So the life expectancy is exceeded there is still Available. This mitigates the risk of living retirement fund.

Question 2

Percentage of income subtracted for a self-employed individual for Social Security and Medicare taxes when calculating the wage replacement ratio (WRR)

Answer 2

15.30% 

Question 3

What happens if a stock option is invested when it is received, and has a readily ascertainable value?

Answer 3

Vested options are taxable immediately based on the value of the option to the extent the fair market value exceeds the option price