3. You can use the compound interest tutorial when discussing qualified plans? T/F

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1 Mentor Group 2016 Final Assessment 1. What three stand alone modules are a part of Tax Master? 2. What is the purpose of the Compound Interest Tutorial? 3. You can use the compound interest tutorial when discussing qualified plans? T/F 4. From which account is the prospect likely to pay the taxes resulting from compounding interest in taxable accounts? 5. Compounding interest in a taxable environment and rolling the interest back in the same account creates an tax liability. 6. How many screens are in the compound interest tutorial? 7. What do most people do with the interest they earn in their investment account? 8. What are the five components that make up the BTID calculation? 9. What two ways can you show the results of the BTID presentation on screen 11? Hint, you can toggle between these two summaries? 10. What does IFR stand for? 11. Describe how one would flatten the taxes within a taxable account? 12. On screen 10/12 of IFR, what number should you enter in the box in the upper right hand corner to indicate over how many years one wants to reduce his/her account over? 13. What is the purpose of the Qualified Plan module? 14. Qualified plans are generally bad? T/F 15. Qualified plans save taxes? T/F

2 16. Bonus: What two things +-do qualified plans actually do? 17. What is another word for defer. 18. What are the two questions you must ask yourself when determining if a qualified plan is right for you? 19. Qualified plans postpone the tax and the. 20. List the 17 screens in the Private Reserve Strategy. 21. Finish this sentence: The private reserve strategy is a strategy designed to help develop or improve one s financial position by avoiding or minimizing unnecessary wealth transfers where possible, and at the same time accumulate an 22. What is the fundamental key to the private reserve account? 23. You finance everything you buy. You either pay interest, or 24. Define a major capital purchase? 25. What are the three types of people presented in the Private Reserve Strategy? 26. What is Collateral Capacity? 27. What three things impact your collateral capacity? 28. What are the three problems with paying cash? 29. What are the three legs of the three legged stool?

3 30. Life insurance is a need product T/F 31. What core module is behind How much does it cost in the ten minute lesson? 32. On screen 3/9, when showing the prospect how long the death proceeds will last in their current scenario, when you come up with a number of when the proceeds will be depleted, what might you say? 33. What is a Moneytrax MEC? 34. What does section 162 of the IRS code deal primarily with? 35. How long does the down payment on your home stay down? 36. What are the names of the three couples in the mortgage video? 37. When is the interest deductible on a reverse mortgage? 38. How much down payment should one put down on their home? 39. How long should one finance their home for? 40. Having your house paid off is bad? T/F 41. Name the three loan options available on a reverse mortgage? 42. Appreciation is independent of Equity T/F 43. What are the three financial reasons to have a mortgage? 44. Name the three emotional reasons to have a mortgage loan?

4 45. What is the minimum age for a reverse mortgage? 46. What event will force a reverse mortgage to be settled? 47. List the five questions of the quiz displayed on slide one of mortgage master. 48. What is the number one reason to have a mortgage? 49. Which slide in mortgage master displays to the client how inflation effects their mortgage payment? 50. T/F. There are more tax savings in the first 15 years of a 30 year mortgage than in all 15 years of a 15? 51. How can one access the House Vs. Home conversation in mortgage master? 52. Name the 12 characteristics of the ideal private reserve account? 53. Of these twelve benefits, how many does a permanent insurance policy have? 54. What is the one benefit that individual PLI does not have? 55. Can a policy owner borrow money from a permanent life insurance contract that has sufficient collateral capacity? Yes/No 56. Paying off your car loan early will reduce the cost of the loan T/F? 57. Name the four scales used in the Client Communications Profile, and their respective, opposite strengths:

5 58. What are the five major areas of wealth transfer? 59. What are the only two ways a person in the financial services business can help their clients? 60. Name the four toughest financial questions we all face? 61. One must balance their current lifestyle desires with their 62. List the ten steps to the Circle of Wealth Sales Process: 63. List the ten open ended questions: 64. What is the purpose of the ten open ended questions? 65. For whom would you use Circle Talk 2? 66. List the 13 screens in Circle Talk 1? 67. In which order should you address the three types of money on CT1, screen Enter the following information in Retirement Ready or Not to answer the following questions: a. Current age: 44 b. Retirement Age :67 c. Life expectancy: 90 d. Current income: 150,000 e. Accumulated: 500,000 f. Annual Savings: 22,000 (inflated annually). g. Accumulation growth rate: 6% h. Distribution growth rate: 4% i. Inflation: 3% j. Defined Benefits: i. Social Security 2,254 per month at age 67, with 2% COLA. ii. Pension of 22,000 per year at age 65, NO COLA. 69. How much money will this client have accumulated at age 67 using these assumptions?

6 70. How much money will be required for this client to live his/her current standard of living at age 67, adjusted for inflation? 71. At what age would this client run out of money other than defined benefits and social security? 72. What rate of return would be required in order for this clients money to last to life expectancy? 73. Assuming this new required rate of return, how much additional risk must this client take on to have the chance of earning this rate of return? 74. When doing circle talk, would you show the client how much they need to be saving each month or year to have enough money to last to life expectancy in Retirement ready or not? If the answer is no, which slide would you reveal this fact in? 75. How long would this client have to work to have his/her money last to life expectancy, if they did nothing different (with life expectancy at age 90?) 76. If the client does nothing different, how much (as a percentage) will he/she have to reduce their current standard of living at retirement? 77. That lifestyle reduction would be like living on how much in today s dollars? 78. In which step of the COW process does the adviser find the money? 79. Name the two types of closes: 80. What are the five criteria for referrals? 81. How do you explain how you get paid? 82. How many calculators are contained within the personal economic model? 83. List at least ten calculators contained within PEM?

7 84. You can recoup but you cannot 85. Describe position A as it relates to the personal economic model? 86. What color is the investment tank? 87. Describe a balanced cash flow model? 88. You should encourage your clients to pay off their home? T/F 89. Prepaying mortgage principal saves interest? T/F 90. Which IRS code covers the sale of property? 91. T/F. The money you put in your mutual fund account compounds interest? 92. What is the maximum home value available in a reverse mortgage? 93. When you complete Circle Talk 1, and click on the word SAVING on screen 13 to illustrate how much your clients should be saving, there are three questions you should ask. What are they? 94. If you get an answer less than 10, how should you respond? 95. Name two reasons to take a collateral position against your cash value? 96. Accelerating principal payments on a loan frees up? 97. T/F. One benefit of permanent life insurance is if you earn 4% on your cash value, and your outstanding loan balance from the insurance company is costing you 4%, you have a wash loan and it actually costs you nothing. 98. One great advantage of permanent insurance is the ability to borrow from yourself?

8 99. You buy a car today for 30,000 cash. What is the cost of the vehicle in year 20 assuming a 5% opportunity cost rate? 100. What would be the monthly payment on a 280,000 mortgage loan at 5% for 30 years?