Question 16

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Which of the following is not necessary to identify a clients life cycle position?

Select one:

a. Attitudes and/or beliefs.

b. Marital status.

c. Dependents.

d. Income level.

e. Net worth.

Question 17

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Which of the following ratios is not used in a typical financial statement approach?

Select one:

a. Liquidity ratios.

b. Debt ratios.

c. Financial security goals ratios.

d. Social Security to savings ratios.

Question 18

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According to the cash flow approach, each of the following recommendations will have a positive cash flow impact except:

Select one:

a. Raise insurance deductibles.

b. Reduce insurance coverage.

c. Increase insurance coverage.

d. Cancel insurance coverage.

Question 19

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Beth earns $100,000 working as a part time lawyer in New Orleans. The company provides a matching contribution to the 401(k) plan of 50% of her contribution up to a maximum contribution of 4% of compensation. Her 401(k) plan account had $60,000 in it at the beginning of the year. She contributed $15,000 to the plan this year and the employer made the matching contribution before year-end. The ending balance of the account is $100,000. What is her savings rate this year?

Select one:

a. 15%.

b. 19%

c. 22.5%

d. 35%

Question 20

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Betty earns $100,000 working as a part time lawyer in New Orleans. The company provides a matching contribution in the 401(k) plan of 50% up to a maximum contribution of 4% of compensation. Her 401(k) plan account had $60,000 in it at the beginning of the year. She contributed $15,000 to the plan this year and the employer made the matching contribution before year-end. The ending balance of the account is $100,000. What is her return on investments this year?

Select one:

a. 6.675%.

b. 26.6%

c. 29.2%

d. 35%