Finra Series-6 Exam - Topic 1 Question 103 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 103
Topic #: 1

A person's discretionary income is:

Athe amount that can be allocated to speculative investments.

Bhis income after tax.

Cthe income that he has left to spend or save after having paid taxes on the income and for all of the necessities, e.g., housing, food, clothing, transportation, utilities, etc.

Dthe amount of his income that is needed to pay his regular monthly bills, e.g., rent, food, gasoline, utilities, health insurance, etc.

Show Suggested Answer

Suggested Answer: C

A person's discretionary income is the income that he has left to spend or save after having paid taxes on the income and for all of the necessities, e.g., housing food, clothing, transportation, utilities, etc. His income after tax is referred to as his disposable income.

by Hector at Jul 08, 2025, 01:19 AM

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Lorita

2 months ago

A is misleading, it’s not just for investments.

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Joesph

2 months ago

C is definitely the right answer!

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Ashley

3 months ago

Wait, isn’t it just after taxes? Seems too simple.

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Pok

3 months ago

Totally agree, it’s all about what you can spend freely.

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Glory

3 months ago

Discretionary income is what’s left after essentials!

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Jani

3 months ago

I feel like option D is more about regular expenses, not really discretionary income. I think C is the right choice, but I hope I remember this correctly!

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Rolande

4 months ago

I’m a bit confused because I thought discretionary income was just after-tax income, but now I’m not sure if that includes all the necessary expenses.

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Burma

4 months ago

I remember practicing a question similar to this, and I think it was about the income left after taxes and essentials. So, I’m leaning towards option C.

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Trina

4 months ago

I think discretionary income is what you have left after paying for necessities, but I'm not entirely sure if it includes taxes too.

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Maricela

4 months ago

I feel pretty confident about this one. Discretionary income is the money you can use for optional or non-essential spending, so the answer has to be C.

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Hyman

4 months ago

Okay, I've got this. Discretionary income is the money you have left over after paying for all your essential expenses. So the correct answer is C.

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Albina

5 months ago

Hmm, I'm not totally sure about this one. I'm trying to remember the definition of discretionary income, but I'm a bit confused. I'll have to think it through carefully.

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Tashia

5 months ago

This one seems pretty straightforward. I think the answer is C - the income left after paying for necessities.

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Felix

7 months ago

I see your point, Novella. So, C is the best answer.

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Novella

7 months ago

I don't think so, discretionary income is more about what you have left to spend or save.

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Kris

7 months ago

But couldn't it also be A, for investments?

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Tijuana

7 months ago

Hmm, I'm going with C. Discretionary income is like that secret stash of cash you can use to bribe the exam proctor, right? Just kidding, but seriously, C is the way to go.

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Lillian

7 months ago

D is a close one, but C really nails it. Discretionary income is what you can use for fun stuff, like buying tickets to the next Weird Al concert. That's living the dream, my friends.

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Rana

6 months ago

C) the income that he has left to spend or save after having paid taxes on the income and for all of the necessities, e.g., housing, food, clothing, transportation, utilities, etc.

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Dorothy

7 months ago

A) the amount that can be allocated to speculative investments.

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Reta

8 months ago

I like C, it covers all the bases. Discretionary income is that sweet spot between what you need to live and what you can play with. Gotta love that extra cash!

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Brock

7 months ago

C is the way to go, it's important to have that balance between covering your needs and having some discretionary income for fun or savings.

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Delfina

7 months ago

Definitely, having some extra cash to play with is always a good feeling. It gives you more freedom to do what you want.

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Luke

7 months ago

I agree, C is the correct answer. It's all about what you have left to spend or save after taking care of the essentials.

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Felix

8 months ago

I agree with Novella, discretionary income is what's left after paying taxes and necessities.

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Jutta

8 months ago

C is the correct answer. Discretionary income is the money left over after paying for necessities like rent and groceries. Simple enough, right?

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Krissy

7 months ago

A: Exactly, it's the income you can use for things like entertainment or savings.

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Shayne

7 months ago

B: Yeah, that makes sense. It's the money you have left to spend or save after all the necessary expenses.

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Delmy

7 months ago

A: I think the answer is C. Discretionary income is what's left after paying for essentials.

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Novella

8 months ago

I think the answer is C.

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