Pre-test Flashcards
(30 cards)
What are the potential negative consequences if a service member has excessive and/or unpaid debt?
Loss of Promotion
Denied overseas assignment
Loss of Security clearance
The answer is all of the above
When thinking of a financially secure retirement, How can thrift savings plan play a part?
Allows service members to invest for the future in a tax advantaged account
May provide employee match
May allow tax-free distributions at retirement
The answer is all of the above
What contribution level allows you to reduce your taxable income and create a retirement fund?
Traditional TSP
The Blended Retirement System (BRS) has four components
Pension
TSP with matching contribution
Continuation pay
Lump sum option at retirement
What is the purpose of spending plan?
Help you manage your money
Helps you plan to meet financial goals
Helps you prepare for emergencies
The answer is all of the above
What are the first steps to personal financial management?
Setting goals
Planning
Making a budget
The difference between pays and allowances is that pay is taxed and allowances are not?
True
Which of the following are steps that should be taken before entering a sales contract?
Take it home before you sign it, read every word, and use your legal service
Which of the following is not an action of a CFS when assisting a Service member who has received a Letter of intent?
Contact creditors for service member and set up a payment plan
What law may allow service members to reduce interest rates for debt incurred prior to military service down to 6% and require a court hearing before conviction?
Servicemembers civil relief act.
Annualcreditreport.com is a government mandated site that provides a free copy of your credit report every twelve months from each of the three nationwide credit reporting companies?
True
Who is the beneficiary of a service member’s SGLCI and Thrift savings plan?
Whomever the service member has designated as beneficiary of this policy
If a service members financial needs exceed your scope of knowledge you should refer them to the Personal Financial Manager (PFM) or Personal Financial Counselor (PSC)
True
What is a warning sign of Identity theft?
Missing bills
Unauthorized accounts on credit reports
Unsolicited credit cards or bills
Net monthly income is:
Gross pay minus income taxes and FICA/social security
What your spending plan (budget) should be based on.
What are three ways to create a positive cash flow?
Decrease living expenses, increase income, decrease indebtedness.
Good financial management states that your indebtedness should be what percentage of your net-income?
35%
Which of the following is a premise of solution focused financial counseling?
It is short-term and maintains a task centered focus.
Which key concept of the Blended Retirement System BRS is part of the Legacy High 3 retirement system?
Lump sum options at retirement
TSP matching contributions
2% multiplier
What is a warning sign that indicates a service member may be experiencing financial difficulty?
Unable to pay bills
Foreclosures of evictions
Repossession
Vesting refers the the time when employer contributions in your retirement account are yours to lump.
true
When a service member enrolls their new spouse in Deers they are automatically enrolled in dental.
false
What is not an action a service member should take prior to employment?
Get a general power of attorney
What are common tasks that you, an CFS in your service, perform to assist Service Members with financial considerations?
Education and training, information and referral and counseling.
