HS326 Insurance Exam

Introduction to Retirement

	Explain the benefits of tax-advantaged plans to clients
	Identify the main elements of the Employee Retirement Income Security Act (ERISA)
	Identify roadblocks to retirement planning
	Help set retirement objectives
	Describe the role of the financial planner
	Differentiate between traditional and Roth IRAs
	Discuss funding vehicles for IRAs and explain distributions

Choosing a Qualified Plan

	Differentiate between defined-contribution and defined-benefit retirement plans
	List the advantages and disadvantages of cash balance money purchase and target-benefit plans
	Discuss the different types of profit-sharing plans
	Compare and contrast 401(k) plans SEPs and SIMPLEs
	Explain the merits of stock bonus plans and ESOPs

Matching Plans with Clients

	Describe the plan design process
	Determine the type of coverage a particular client needs
	Discuss benefit structure concerns
	List participation requirements for types of qualified plans
	Identify which types of plans allow plan loans and describe disbursement of loans
	Explain the two main types of vesting schedules
	Explain death and disability benefit rules as they apply to qualified plans
	Determine if a plan falls under top-heavy rules

Funding and Administration

	Explain plan funding requirements
	Relate the history and evolution of group pension products
	Describe how life insurance and annuities function as funding vehicles
	Apply solid principles of investing to meet clients' needs
	Explain the financial planner's role in plan installation and administration
	Illustrate how defined-contribution and defined-benefit plans are terminated
	Tell how funds are distributed from terminating plans

Monetary Needs after Retirement

	Determine a client's expected standard of living
	Estimate income for a client's first year of retirement
	Explain how inflation and social security enter into a client's retirement assumptions
	Factor a client's pensions and private savings into an overall investment picture
	Determine post-retirement monetary needs
	Implement a savings schedule
	Describe the three periods of retirement investing

Nonqualified Plans & Distribution

	Discuss the market for nonqualified plans
	List and describe the types of nonqualified plans
	Define executive bonus life insurance
	Explain the tax considerations applicable to nonqualified plans
	Describe how nonqualified plans can be funded
	Determine how funds are distributed from plans prior to retirement
	Describe how annuities are distributed at retirement
	Determine the required minimum distributions at retirement
	Identify the advantages and disadvantages of lump-sum distributions over periodic payments