Preview Questions Financial Planner | Role Specific Skill

Question 1: What is the estate tax exemption amount for an individual in the current year?

Which action should you take?

Choose only one option

$11.58 million

$25.75 million

$5.12 million

$22.12 million

Question 2: What is the significance of understanding the time value of money in the context of financial planning?

Which action should you take?

Choose only one option

To calculate future healthcare costs

To calculate tax obligations

To assess the present value of future cash flows

To determine asset depreciation rates

Question 3: Which type of risk is most significant in the drawdown phase of retirement?

Which action should you take?

Choose only one option

Sequence of returns risk

Market risk

Inflation risk

Longevity risk

Question 4: How does portability work in federal estate tax planning for BFSI clients?

Which action should you take?

Choose only one option

Avoids double taxation

Eliminates gift tax limits

Combines exemptions for joint assets

Allows transfer of unused exemption

Question 5: What is the benefit of creating a tax-efficient estate plan for a client?

Which action should you take?

Choose only one option

It increases the value of the estate by reducing tax deductions

It ensures that no taxes are owed upon death

It simplifies the estate administration process

It reduces the amount of taxes owed on the estate's assets

Question 6: How does stress testing assist in risk management for financial planning?

Which action should you take?

Choose only one option

By predicting the exact value of future investments

By identifying the least volatile assets in a portfolio

By analyzing potential portfolio performance under adverse conditions

By ensuring compliance with regulatory capital requirements