Level Two: General Financial Planning
Difficulty Level: Moderate

 
True or False

1. _____ Interest or dividend income can be a common objective of a mutual fund.

 

2. _____ A short-term bond fund invests in bonds that mature in 6 to 12 years.

 

3. _____ Living wills and durable powers of attorney for health care are two examples of advanced medical directives.

 

4. _____ Wealth management normally does not include estate planning.

 

5. _____ Whole life insurance never includes a savings element minimum or rate of return.

 
Answers
 

1. True. Other mutual funds focus on capital growth/appreciation and capital preservation.
2. False. Short-term bond funds primarily focus on bonds with maturities of less than five years.
3. True.
4. False. This may be handled by a separate estate planning attorney but can also be addressed by the advisory team managing your other wealth-related affairs.
5. False. Term life insurance is not likely to include a savings element.