Aams Module 6 13 Correctly Answered Questions Latest Update

How are the statistics about average annual expenditures compiled by the Bureau of Labor Statistics used to assess a client's retirement income needs {Ans: Average annual expenditure information compiled by the BLS includes broad averages based on consumption patterns of people from ages 35 to 64 and ages 65 and over. While these stats won't fit any client precisely, they will help you understand how a person's financial life may change when his or her working years end.}Disadvantages to using tax deferred arrangements {Ans: limitations on the types of investments offered and allowed; generally, the entire distribution will be taxed as ordinary income (although Roth IRA distributions can be tax-free and nondeductible IRA distributions are taxed only on earnings received) even if some of it came from capital gains (that is, from appreciation rather than from reinvested income; and tax penalties are charged if withdrawals are too early or too late; distributions must start as designated in the IRC, regardless of need. With IRAs, SEPs, or SIMPLE IRAs, distributions must begin by April 1 following the year the owner attains age 70 1/2. With qualified plans or 403b plans, distributions must begin by April 1 following the later