The following is a quiz I used to give to CPAs, and most didn’t do very well. Here’s a Qualified Plan Quiz: This is the quiz we give to our continuing education class for CPAs: 1. Is a qualified plan a tax savings event? (No, it only postpones the taxes on your plan) 2. What is the only guarantee of a qualified plan? (You pay all the fees) 3. What tax bracket will you be in at retirement? (Who knows, the government controls this variable) 4. Will taxes be higher or lower in the future? (Probably much higher) 5. Should you over-fund your retirement plan? (Never!) 6. Who pays all the hidden fees & takes all the risk in your qualified plan? (You do!) 7. What deductions will you have available when you begin withdrawing your funds? (Very few) 8. When is the best time to take money out of your retirement plan? (As soon as possible) 9. How liquid is your money inside your qualified plan? (Very little, if any, liquidity) 10. How large will the tax-lien be when you retire? (Who knows?) 11. Should you ever have a tax-deferred annuity inside your retirement plan? (Absolutely!) 12. If you should lose 40%, as happened twice in the last decade, what rate of return must you earn just to get back to even? (66.7%, and will you have the time to recoup your losses) 13. What is your exit-strategy when you begin withdrawing money from your plan? (The IRS decides this.)
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