Joshsubject:Retirement Planning and Employee Benefits

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David · Accepted Answer

1. Which of the following statements accurately describes a reason for the suitability of an asset class in a qualified retirement plan portfolio? (Points : 3)
	       Mutual funds provide diversification and offer a competitive rate of return.
       Money market investments provide liquidity and a high real rate of return.
       Common stocks offer capital appreciation and are relatively low risk.
       Bonds are useful for funding future fixed obligations and offer protection against inflationary pressures.
Accurately describes a reason for the suitability of an asset class in a qualified retirement plan portfolio is 
Mutual funds provide diversification and offer a competitive rate of return 
Rest of the options are not diversified portfolio is diversified and increase the returns 
	2. Joe (age 52) has just started a consulting company. He currently employs 6 people, who range in age from 22 to 31 years old. Joe estimates that the average employment period for his employees will be approximately 3 years and would like to implement a retirement plan that will favor older participants while including an appropriate vesting schedule. In addition, Joe would like the employees to bear the risk of investment performance within the plan. Which of the following plans is most appropriate for Joe's company? (Points : 3)
	       SEP plan
       SIMPLE 401(k) plan
       Target benefit plan
       Cash balance plan
A cash balance plan is a defined benefit retirement plan that maintains hypothetical individual employee accounts like a defined contribution plan.

Joshsubject:Retirement Planning and Employee Benefits

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