1. The four steps of the consultative sales process are:

a)1. Information gathering and client profile; 2. Presenting financial plan; 3. Plan implementation, 4. Ongoing monitoring and research.

b)1. Information gathering; 2. Presenting financial plan; 3. Managing assets; 4. Seeking client referrals.

c)1. Introducing team and firm; 2. Gathering information; 3. Presenting plan; 4. Presenting alternative plans.

d)None of the above

2.The main purpose of creating a client profile is:

To allow the advisor to ask as many questions as he/she feels is necessary.

To allow the financial advisor to gain referrals.

To allow the financial advisor to understand the client completely.

To comply with state regulations.

3.The majority of an investment advisors clients come from:

Public seminars

Referrals

Friends and family

Many different sources

4.The majority of todays investors typically have a defined benefit plan at work; therefore saving for retirement is not a priority. True/False

5.The Social Security Administration is on record saying that the program was never intended to be a retired persons only source of income. True/False

6.The three client life cycle phases are:

Accumulation, Cessation, Retirement

Gathering, Distribution, Legacy

Accumulation, Transition, Distribution

Growth, Transition, Bequest

7.The timing of distributions from Social Security is important because:

Choosing an earlier distribution can result in a locked-in reduction to the monthly amount.

Waiting until FRA, or full retirement age, will decrease the monthly amount.

The timing of distributions does not matter since the choice can be changed at any time.

If a person waits too long to choose distributions, the benefit is forfeited.

8.What does the Social Security acronym PIA stand for?

Primary Insurance Amount.

Pre-retirement Insurance Amount.

Preliminary Incident Allowed.

Prorated Insurance Amount.

9.Which of the following statements are TRUE regarding a 529 savings plan?

The plans are named after section 529 of the Internal Revenue Code

The plans are one of the best ways to save for college costs.

The earnings in a section 529 plan grow tax-free.

There is no federal income tax on money withdrawn from a section 529 plan as long as it is used for qualified educational expenses.

All of the above

None of the above

10.Which of the following statements is NOT TRUE about Social Security:

Although benefits increase for each month an individual waits to collect beyond their Full Retirement Age, if an individual waits until after age 70 to collect, their benefit maxes out at 132% of their Primary Insurance Amount.

Married couples can claim benefits based on their own work records or 50% of their spouses benefit, whichever is higher.

Couples who claim spousal payments at FRA cannot later switch to payments based upon their own work record.

Usually, survivor benefits are equal to the benefits the deceased spouse was receiving.