Incapacity Planning - Sample Questions 1 - 4
1. All of the following are eligibility qualifications for Medicaid benefits EXCEPT:
A) Income below a certain level
B) Assets below a certain level
C) Pregnant or support minor children
D) Disability payments are depleted
2. Your elderly single client (Thomas) comes to you as his financial planner for help. Thomas has no debt, but he realizes that his memory is not as good as it used to be and his daughter (Lisa) is concerned that health issues might cause him to be hospitalized in the near future. Which of the following should you recommend:
I. Life insurance
II. Health care directive
III. Durable power of attorney
IV. Long-term care insurance
A) I and III only
B) II and IV only
C) II, III and IV only
D) I and II only
3. The specific power of attorney selection that doesn't go into effect until the individual becomes incapacitated is known as:
A) Springing power
B) Testamentary power
C) Limited power of attorney
D) Special power attorney
4. Which of the following estate planning tools would provide a good source of income for the life of someone that is unable to generate their own income due to disability or mental illness?
I. Growth mutual funds
II. Supplemental needs trust
IV. Fixed annuity
A) I and II only
B) II and III only
C) II and IV only
D) I and IV only
Mutual Funds & ETFsLearn about the Vanguard Total World Stock exchange-traded fund, which invests in stocks located in numerous countries with a high level of diversification.
Mutual Funds & ETFsLearn about the iShares MSCI USA Minimum Volatility exchange-traded fund, which invests in low-volatility equities traded on the U.S. stock market.
Mutual Funds & ETFsLearn about the iShares US Real Estate fund, which holds shares of equity and nonequity real estate investment trusts incorporated in the United States.
Mutual Funds & ETFsLearn about the SPDR Barclays Short-Term Corporate Bond ETF, and explore detailed analysis of the exchange-traded fund tracking U.S. short-term corporate bonds.
Investing BasicsOwning stocks may shortly become too scary for your portfolio. Here's why, and here are some alternatives.
Forex StrategiesWhat are the best strategies to avoid exchange rate risk when trading?
Investing BasicsLearn how the bet against beta strategy is used by a large hedge fund to profit from a pricing anomaly in the stock market caused by high stock prices.
InvestingOnce you understand the benefits of ETFs, you’ll see how they could be an exciting and smart way to help meet your financial goals. Here some key facts.
Investing NewsNot sure where oil and gold are headed? The answer is complex.
ProfessionalsMany baby boomers have been investing heavily in equities in their 401(k)s. Now may be the time to rebalance to avoid huge losses if the market tanks.
The amount of risk that an insurance company retains after subtracting ...
Coverage that provides financial protection to investors, financial ...
The maximum loss from a peak to a trough of a portfolio, before ...
The absolute level of a fund's investments.
A technique used by insurance companies to calculate loss reserves.
The financial benefit that a risk-taking activity will bring ...
The Federal Deposit Insurance Corporation, or FDIC, is a government-run agency that provides protection against losses if ... Read Full Answer >>
The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
The term delta refers to the change in price of an underlying stock or exchange-traded fund (ETF) as compared to the corresponding ... Read Full Answer >>
An investor who is overweight in a particular sector risks a loss in value for the portfolio if there is a downturn in that ... Read Full Answer >>
The retail sector consists of companies operating in multiple industries such as specialty retail, general retail, food and ... Read Full Answer >>
Like all equity investments, insurance companies present investors with market risk. Insurance companies, like banks, also ... Read Full Answer >>