Financial Planning for Older Adults Flashcards
7 cards from real CFG practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Financial Planning for Older Adults flashcards as text
At what age does Medicare eligibility typically begin for most Americans?
Answer: 65
Medicare eligibility begins at age 65 for most Americans who have worked and paid Medicare taxes for at least 10 years.
Which cognitive condition is characterized by a gradual decline in memory and other cognitive functions sufficient to interfere with daily life?
Answer: Alzheimer's disease
Alzheimer's disease is the most common form of dementia, causing progressive decline in memory and cognitive function that interferes with daily activities.
What is the Medicaid 'look-back period' for most asset transfers?
Answer: 60 months
Medicaid uses a 60-month (5-year) look-back period for most asset transfers to prevent applicants from gifting assets to qualify for benefits.
A client's long-term care policy has a 90-day elimination period. This means:
Answer: Benefits do not begin until 90 days of qualifying care have elapsed
An elimination period acts like a deductible in time; the insured must receive qualifying care for 90 days before the insurance company begins paying benefits.
Which approach to retirement income planning segments assets into 'buckets' based on time horizon?
Answer: Bucket strategy
The bucket strategy divides retirement assets into short-, medium-, and long-term buckets with different investment allocations matching each time horizon.
Which of the following is a primary indicator of elder financial exploitation rather than normal gift-giving?
Answer: Large, unexplained withdrawals from an elder's account made by a new acquaintance
Unexplained large withdrawals by a new acquaintance are a classic red flag of elder financial exploitation, unlike voluntary gifts to established relationships.
For a single individual in 2024, Social Security benefits become 85% taxable when combined income (AGI + nontaxable interest + 50% of SS benefits) exceeds:
Answer: $34,000
For single filers, up to 85% of Social Security benefits are taxable when combined income exceeds $34,000.