The Bucket Plan® Best Interest Process Exam

Situations that are associated with poor timing of returns when withdrawing from investments is what type of risk?

It is imperative to explain to clients that the preservation phase of the Money Cycle is designed to preserve __________ of their assets.

At what point should we consider reloading the Soon Bucket if utilizing a Draw Down strategy?

Which four product types would be a good fit in the Soon Bucket for a pre-retiree client who will have an income gap in retirement?

Into what three planning scenarios can the Soon Bucket be categorized?

Which basic formula can be used to determine the amount of money needed in the Soon Bucket for a client who wants to utilize an annuity that allows 10% penalty-free withdrawals of the initial deposit to employ a draw down strategy and account for 3% inflation?

A client has a family member who is financially dependent on her.  The client would like to ensure that the family member’s needs will be met after she is gone.  When explaining The Bucket Plan, which bucket will meet those needs?

The Connection Questionnaire gathers ALL necessary information to complete The Bucket Plan while meeting the Best Interest standards for documentation.

The Bucket Plan philosophy can only be utilized for retirement income or distribution planning.

The three concepts that are part of The Bucket Plan Best Interest Process are:

How does the Money Cycle Philosophy used in The Bucket Plan Best Interest Process differ from the traditional money cycle?

What are the two key points you would highlight to a client while explaining the purpose of The Now Bucket in The Bucket Plan Philosophy?

What are the two key points you would highlight to a client while explaining the purpose of The Soon Bucket in The Bucket Plan Philosophy?

What are the two key points you would highlight to a client while explaining the purpose of The Later Bucket in The Bucket Plan Philosophy?

Which three reasons make completing the Asset Inventory Document so imperative?

Which of the following is true for scoring the Volatility Tolerance Analysis?

If the client or advisor does not agree with the scores on the Volatility Tolerance Analysis, they do not have the ability to make adjustments.

Which four of the following product types would be best-suited to use to employ the Draw Down income method?

If a client had an income gap of $50k annually, with how much money would you need to fund the Soon Bucket (excluding taxes and inflation) if you used a dividend stock portfolio with a 4% dividend?

If a client scores Captial Preservation in the SOON Bucket, a Fixed or Fixed Indexed Annuity may be an appropriate recommendation.

If you have a high-net-worth, aggressive investor, would a dividend stock portfolio be an appropriate recommendation in the Soon Bucket?

If a client scores Aggressive in the LATER Bucket, a Fixed or Fixed Indexed Annuity may be an appropriate recommendation.

In the Soon Bucket, which three product types would be MOST appropriate for a 35-year-old with no planned income need?

In order to complete a Bucket Plan, you must have ALL the client’s financial statements and tax information.

A client has $1.5M in stocks, $200k in bonds, and is the beneficiary of her aging father’s $6M estate.  She scored Conservative in the Soon Bucket and Aggressive in the Later Bucket.  She has a $40k annual income gap and wants to retire.  How much would you put in her Soon Bucket if you were going to recommend the Draw Down strategy, based on the formula you learned in this course?

The sequence of returns is a risk in the accumulation phase.

In the accumulation phase, Portfolio #1 loses 20% in year 1, gains 10% in years 2-4, and gains 20% in year 5.  In the accumulation phase, Portfolio #2 has the opposite sequence of returns.  It gains 20% in year 1, gains 10% in years 2-4, and loses 20% in year 5.  Assuming both portfolios started with the same amount, which portfolio has more money after 5 years?

In the distribution phase, Portfolio #1 loses 20% in year 1, gains 10% in years 2-4, and gains 20% in year 5.  In the distribution phase, Portfolio #2 has the opposite sequence of returns.  It gains 20% in year 1, gains 10% in years 2-4, and loses 20% in year 5.  Assuming both portfolios started with the same amount and withdrew the same amounts each year, which portfolio has more money after 5 years?

The Income Gap Assessment can always be used to determine clients’ income needs in retirement instead of a detailed budget.

The Pyramid of Risk for educational purposes is a tool for use only with clients who are 10 or more years from retirement.

The Investment Planning Statement assists the advisor and the client in effectively supervising, monitoring, and evaluating the client’s plan.

Explaining why we consider certain investments higher risk and others lower risk is one of the reasons we utilize the Pyramid of Risk for __________.

Showing where a current portfolio falls in comparison to the recommended risk category ranges is one of the reasons we utilize the Pyramid of Risk for ___________.

A Bucket Plan should be created for every client, regardless of how old they are or how much money they have.