1. If you lost 30% in the stock market last year, but then you gained 30% this year…..
   1. You are thrilled that you can trade a stock
   2. You are even
   3. You are ahead
   4. You are still at a loss
   5. It depends on your location
   Let’s say that you had $100,000 yesterday, but you lost thirty percent. At the end of the day, you now would only have $70,000. The next day, you gained thirty percent, but the damage had already been done since your asset base had diminished to $70,000. So, $70,000 * 30% = $21,000 + your asset base of $70,000 is only $91,000. You would still be $9,000 in the hole! If you lost 30% yesterday, you would need a 42.9% gain, just to get back even again. Losses matter. See illustration below on how much of a gain will be required if you had the following losses (annually). Where is it written that you have to lose 30%, 40%, 50% or even 60% to make money long-term in the markets?                To learn more about the impact of a huge loss or losses go here:
2. If you have a 6% fixed ROI/Rate of Return. Approximately, how long should it take to double your investment?
1. 6 years
2. 9 years
3. 10.2 years
4. 12 years
5. 15 years
If you are familiar with the rule of 72, then any ROI (interest rate/Rate of Return) number divisible by 72 is how many years that it should take to double your investment. So, if you had 6%, then divide 72 by 6, or 72/6 = 12. The correct answer would be 12 years. To learn more about the Rule of 72 go here: https://plushretirement.com/the-rule-of-72/
3. Tina is 45 years old, single, and makes $300,000 annually. How much can she contribute to her Traditional or Roth IRA per year for 2024 or 2025?
1. None
2. $5,000
3. $6,000
4. $7,000
5. $22,000
Unfortunately, Tina makes too much money to even contribute to a Traditional or Roth IRA. Unless her employer offers a type of 401k Roth or 403b Roth IRA, then she will not be able to contribute to either type of IRA. In 2024, single filers that make more than $161,000 (or married joint filers making more than $240,000 combined) were over the income limits and cannot contribute to those types of plans. If she made $150,000, then she would be able to contribute a maximum of $7,000 annually to either a Traditional or Roth IRA or both (can’t contribute more than $7,000 to both plans). In 2025 the single filers that make more than $165,000 (or married joint filers making more than $246,000 combined) are over the income limits and cannot contribute to Roth IRA. To get contribution & income limits on Retirement Plans go here: https://plushretirement.com/contribution-income-limits-on-retirement-plans/  
4. Which would make more money in Ten Years
1. 6% Simple Interest
2. 5% Simple Interest
3. 4% Simple Interest
4. 4% Compound Interest
5. 5% Compound Interest
    The correct answer would be 5% Compounding Interest, since it is able to add each previous year’s gains to each annual gain. See the graph above. If only a few years then it might still be advantageous to take the higher interest rate, but the longer time span, the greater the compounding effect and even 4% compounding interest outpaces 6% simple interest at year 20. To learn more about the power of compounding interest and investment education go here: https://plushretirement.com/investment-education/  
5. Which of the following financial products and solutions are guaranteed to never lose any of your principal?
1. Stocks /Mutual Funds / ETFs
2. Variable Annuities
3. Fixed-Indexed Annuities
4. Bonds
5. Bitcoin /Cryptocurrency
The correct answer is Fixed-Indexed annuities. Many assume that bonds are a safe investment, although in a rising interest rate environment, you can actually lose money/value in bonds. If the ten-year bond is suddenly trading at a higher interest rate (ie.: 4% to 6%), then you can either liquidate at a loss in order to get better returns/gains with your money (at 6%), or you will have to wait the length of the term to receive the lower interest rate (10 years at 4%). Stocks, Variable Annuities, and Crypto currency can be very volatile, so if your timing is bad, you can lose a lot of money. As the saying goes, no risk, no gain, but you better be watching the market closely or pay someone who will! See chart here on risk versus no risk investments: As risk increases, so do the chances to increase profits, but anything above the blue line has potential to lose money. To learn more about the power of compounding interest and investment education go here: https://plushretirement.com/investment-education/  
6. Which would make more money in Five Years
1. 6% Simple Interest
2. 5% Simple Interest
3. 4% Simple Interest
4. 4% Compound Interest
5. 5% Compound Interest
Simple Interest: Interest calculated only on the initial principal amount, without considering any interest previously earned. The formula is Simple Interest = 𝑃 × 𝑟 × 𝑡, where P  is the principal, r  is the rate, and t  is the time. Compound Interest: Interest calculated on the initial principal and also on the accumulated interest from previous periods. The formula is Compound Interest=𝑃 × (1+𝑟/𝑛) ^𝑛𝑡 ,   where P is the principal, r is the rate, n is the number of times interest is compounded per period, and t is the time. The correct answer would be 6% Simple Interest, then 5% compounding interest. The lower compounding rate can’t add enough of the previous year’s gains to each annual gain in under five years. See the graph above. But, after year 8 the smaller compounding interest starts to outpace the simple interest rate. If only a few years then it’s still advantageous to take the higher interest rate whether simple or compounding, but the longer time span, the greater the compounding effect and even 4% compounding interest outpaces 6% simple interest at year 20.                                   To learn more about the power of compounding interest and investment education go here: https://plushretirement.com/investment-education/  
7. In the event of a death in which a family is paid a death benefit of $100,000 on a life insurance policy, how much would they be taxed by the IRS?
1. $22,000
2. $12,000
3. $0
4. $10,000
5. $18,000
vvvLife Insurance pays the beneficiary(ies) tax free. It is also creditor and predator proof. If you inherit a life insuracne benefit, then you should never worry about paying taxes on it. So, if you are ever looking to leave money to your family, a charity, or endowment, why would you leave it in a bank to be diminished by taxes, when you could guarantee a benefit completely tax-free? To learn more about tax shelters go here: https://plushretirement.com/tax-free-retirement/
8. The average life expectancy of a man and woman (in 2023) is
1. Man – 69             Woman – 75
2. Man – 75             Woman – 80
3. Man – 76             Woman – 79
4. Man – 85             Woman – 89
5. Man – 90             Woman – 94
Current Life Expectancy  in 2022 was actually down from earlier peak, but don’t expect that to stay low for long with modern advancements in technology and biomedicine/pharma.  The life expectancy in 2022 for Men was 74.9 years & Women 80.3 years. To obtain morbidity statistics or life expectancy data for men and women, you can refer to the following reliable sources:
1. World Health Organization (WHO):
   • The WHO provides comprehensive global health statistics, including morbidity and life expectancy data.
   • Website: who.int
2. Centers for Disease Control and Prevention (CDC) (for the United States):
   • The CDC offers detailed health statistics, including life expectancy and morbidity data for different demographics.
   • Website: cdc.gov
3. National Center for Health Statistics (NCHS):
   • A division of the CDC, the NCHS provides a wide range of health statistics, including life expectancy tables.
   • Website: cdc.gov/nchs
4. United Nations Department of Economic and Social Affairs (UN DESA):
   • The UN DESA publishes global population and health statistics, including life expectancy.
   • Website: un.org/development/desa
5. OECD (Organization for Economic Co-operation and Development):
   • The OECD provides health data for its member countries, including life expectancy and morbidity rates.
   • Website: oecd.org
6. National Institutes of Health (NIH) (for the United States):
   • The NIH provides extensive research and statistics on various health conditions, including morbidity and mortality data.
   • Website: nih.gov
These sources offer reliable and up-to-date information on health statistics for various populations.
9. What are the chances of needing Long Term Care (Permanent Hospitalization) in your golden years?
1. Below 30%
2. 30% to 45%
3. 46% to 60%
4. 61% to 75%
5. Above 75%
According to the U.S. Department of Health and Human Services (HHS), based on current data, around 70% of individuals turning 65 today are likely to need some form of long-term care services during their remaining lifetime, with women generally needing care for a longer duration compared to men; this information is readily accessible through the HHS’s reports on Long-Term Services and Supports for Older Americans. To see the latest report access here: https://aspe.hhs.gov/sites/default/files/private/pdf/265136/LTSSRisk.pdf.
10. How much do credit inquiries from creditors checking your credit worthiness by pulling your credit account for your credit score?
1. 5%
2. 10%
3. 15%
4. 20%
5. 30%
Credit Inquiries account for 10% of our credit score. It isn’t per inquiry, but for total weight of inquiries. So, if your scores are being pulled down from inquiries, you may not have the best credit scores. We often get asked why it would affect you, but a most significant answer is if you have had multiple inquiries but not showing anything new on your credit, then creditors start to wonder if you are having problems getting approved by other companies.                            Here is a quick reference chart, but see this link below to get clearer understanding of each category: https://plushretirement.com/demystifying-credit-scores-how-credit-scores-are-calculated/