Social Security
Slide 1
B – 2 only
A - Has to be for at least 10 years
FICO has 4 Ratings - name them
Exceptional
Good
Fair
Poor
If you delay receiving your benefits, at what age do you max your benefit percentage, and what is that percentage?
Age 70 - 124%
8% a year for 68, 69, 70
How long do Extended Fraud Alerts last for?
3, 5, 7, or 10 years?
7 years
Full retirement age is decreasing because individuals are retiring earlier than in past years/decades
False
It is increasing
Part A of Medicare covers what 3 items
Hospital
Hospice
Nursing Home
Which type of credit pull would is used when applying for a mortgage?
Hard Credit pull
All of the following do not count towards earnings limitation EXCEPT:
a- Rental Income
b- Dividends from investments
c- Net Self Employment Income
d- 401k withdrawals
e- Pension Income
C -
Net Self Employment income counts towards the earnings limitation
A credit score of 523 falls into which of the 4 scoring buckets?
Poor
Anything under 580 is considered poor
Slide 7
The correct answer is a.
Follow-up office visits are covered under Part B of Medicare. All other expenses listed are covered under Part A.
Slide 4
D - 4
In 2022, a worker earns one-quarter of coverage for each $1,510 in earnings, up to a maximum of four quarters of coverage for the year. Since 1978, it is not necessary that the worker have earnings in each calendar quarter.
Name the two most well-known credit scoring companies
FICO and Vantage
Slide 2
A - 62 is the minimum retirement age except for widowers eligible at 60
Credit agencies collect information on which of the following:
a- Adjusted Gross Income
b- Employment records
c- Tax Liens
d- Pay raises
C
Tax Liens
Part B of Medicare covers what?
Physicians costs
Supplemental Security Income (SSI) is designed for high earners that only earn investment income. Because they do not earn wages, SSI supplements the gap in wages with a 1.2% basis capped at $750,000
False
SSI is for low income families with little to no assets
A credit score of 802 falls into which of the 4 score buckets
Excellent
Anything over 800 is considered Excellent
True or False
A healthy person can elect to waive Medicare Part B at age 65
False
People are automatically enrolled in Part A and Part B at age 65
Who Most likely has the highest Credit Score
a- Tim has 3 credit cards with $100k limits with $0 balance
b- Blair has 2 credit cards, utilization of 27%, car loan, mortgage, no late payments in 4 years
c- Jo has a 15-yr mortgage, in the 8th year, no late payments, no other debt
d- Mrs. Garrett has 1 credit card, gas card, car loan, utilization of 41%, and no lates in 7 years
B
Mix of types, 1-30% utilization, no late payments
Slide 3
C - Statement 1 is correct. The earnings limitation is $19,560 (2022), after which the Social Security recipient will have a reduction of $1 of benefits for each $2 of earned income in excess of the threshold. It only applies to those who are under NRA at the time of the earnings. Statement 2 is correct for those under normal retirement age.
Slide 6
B
(1) 85% x $18,000 (Social Security Benefit) = $15,300
(2) 85% x [$26,000 + $9,000 - $34,000] = $850 plus the lesser of $4,500, or
(2a) 50% x $18,000 = $9,000, or
(2b) 50% x [$26,000 + $9,000 - $25,000] = $5,000
(2c) Or a total of $850 + $4,500 = $5,350.
The lesser of $15,300 or $5,350.
Which of the following is correct?
a-Life Insurance companies check credit to determine probability of Death
b- Landlords check to determine rental rates
c- Cell Phone companies check to determine plans
d- Employers check to determine salary and bonus
C - Cell phone companies can check to see if you will pay your bill
Part D of Medicare covers what?
Prescriptions
Which has better fraud protection
a- Debit Card
b- Credit Card
B - Credit Card
Slide 5
C - The earnings reduction applies, and Alfred will lose $1 in Social Security benefits for every $2 over $19,560 (in 2022). Since his earnings are $10,000 over the limit, Ben will lose $5,000 of Social Security Benefits, reducing his total benefit from $22,000 to $17,000.