Question 1
Prior to providing retirement planning services, the scope of the services offered should be
mutually defined by the planner and client. This is a part of Step 1: Understanding the
client's personal and financial circumstances. This initial discussion should NOT include
which one of the following topics?
A)
Identifying specific funds in which to invest
B)
Disclosing the planner's compensation arrangements
C)
Identifying the services to be provided
D)
Establishing the duration of the services and engagement
CORRECT ANSWER
A) Identifying specific funds in which to invest
Question 2
The process of data gathering is a portion of the first step of the planning process. All of
the following are examples of data to be gathered EXCEPT
A)
the client's ability to purchase health insurance.
B)
the balances in retirement accounts.
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,C)
investment risk tolerance.
D)
income sources and amounts.
CORRECT ANSWER
A) the client's ability to purchase health insurance.
Question 3
Frank and Brenda Elliot own $20,000 in cash equivalents, $100,000 in invested assets, and
$290,000 in use assets. The Elliots have an outstanding mortgage of $150,000 and owe
$3,500 in credit card debt. They paid $12,300 in taxes this year. What is the Elliots' net
worth?
A)
$236,500
B)
$256,500
C)
$260,000
D)
$410,000
CORRECT ANSWER
B) $256,500
Question 4
Andy and Lori Cookston had a combined gross salary of $85,000 this year. Other cash
inflows amounted to $9,800. Their fixed cash outflows were $26,300, and their variable
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,cash outflows were $64,700. Andy's IRA balance is $45,300. What was the Cookstons' net
cash flow for the year?
A)
$68,500
B)
$6,000 deficit
C)
$30,100
D)
$3,800
CORRECT ANSWER
D)$3,800
Question 5
All of the following are considered foundation financial goals EXCEPT
A)
emergency funds.
B)
helping grandchildren with college.
C)
life, health, and automobile insurance.
D)
food, clothing, and shelter.
CORRECT ANSWER
B)helping grandchildren with college.
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, Question 6
Which one of the following is an incorrect statement regarding retirement spending
habits?
A)
Expenditures for retirement plan contributions cease
B)
Travel and recreation costs increase
C)
Automobile-related costs increase
D)
Health costs increase
CORRECT ANSWER
C) Automobile-related costs increase
Question 7
Which of these are true concerning longevity?
Most life expectancy tables will give very similar results.
The life expectancy of the lowest quartile of income is increasing about one year per decade.
The life expectancy of the highest quartile of income is increasing about two years per
decade..
The differences in life expectancy were correlated with access to medical care and
environmental differences.
A)
II and III
B)
I and IV
C)
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@THE STUDY VAULT
Prior to providing retirement planning services, the scope of the services offered should be
mutually defined by the planner and client. This is a part of Step 1: Understanding the
client's personal and financial circumstances. This initial discussion should NOT include
which one of the following topics?
A)
Identifying specific funds in which to invest
B)
Disclosing the planner's compensation arrangements
C)
Identifying the services to be provided
D)
Establishing the duration of the services and engagement
CORRECT ANSWER
A) Identifying specific funds in which to invest
Question 2
The process of data gathering is a portion of the first step of the planning process. All of
the following are examples of data to be gathered EXCEPT
A)
the client's ability to purchase health insurance.
B)
the balances in retirement accounts.
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,C)
investment risk tolerance.
D)
income sources and amounts.
CORRECT ANSWER
A) the client's ability to purchase health insurance.
Question 3
Frank and Brenda Elliot own $20,000 in cash equivalents, $100,000 in invested assets, and
$290,000 in use assets. The Elliots have an outstanding mortgage of $150,000 and owe
$3,500 in credit card debt. They paid $12,300 in taxes this year. What is the Elliots' net
worth?
A)
$236,500
B)
$256,500
C)
$260,000
D)
$410,000
CORRECT ANSWER
B) $256,500
Question 4
Andy and Lori Cookston had a combined gross salary of $85,000 this year. Other cash
inflows amounted to $9,800. Their fixed cash outflows were $26,300, and their variable
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,cash outflows were $64,700. Andy's IRA balance is $45,300. What was the Cookstons' net
cash flow for the year?
A)
$68,500
B)
$6,000 deficit
C)
$30,100
D)
$3,800
CORRECT ANSWER
D)$3,800
Question 5
All of the following are considered foundation financial goals EXCEPT
A)
emergency funds.
B)
helping grandchildren with college.
C)
life, health, and automobile insurance.
D)
food, clothing, and shelter.
CORRECT ANSWER
B)helping grandchildren with college.
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, Question 6
Which one of the following is an incorrect statement regarding retirement spending
habits?
A)
Expenditures for retirement plan contributions cease
B)
Travel and recreation costs increase
C)
Automobile-related costs increase
D)
Health costs increase
CORRECT ANSWER
C) Automobile-related costs increase
Question 7
Which of these are true concerning longevity?
Most life expectancy tables will give very similar results.
The life expectancy of the lowest quartile of income is increasing about one year per decade.
The life expectancy of the highest quartile of income is increasing about two years per
decade..
The differences in life expectancy were correlated with access to medical care and
environmental differences.
A)
II and III
B)
I and IV
C)
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