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CRPC EXAM ACTUAL EXAM|| ACCURATE AND FREQUENTLY TESTED
QUESTIONS AND 100% CORRECT ANSWERS WITH RATIONALES||
LATEST AND COMPLETE UPDATE WITH EXPERT VERIFIED SOLUTIONS||
The Department of Labor requirements regarding advice given to retirement investors
will most likely - ✔✔✔ - ANSWER: INCREASE CLIENT EXPECTATIONS OF ADVISERS AND
PUT DOWNWARD PRESSURE ON FEES
If asking you to solve for an annuity due where payments occur at the beginning of the
period - ✔✔✔ - ANSWER: you would set calculator for BEG.
identifying specific funds in which to invest are discussed on? - ✔✔✔ - ANSWER:
Specific investments are not discussed until step four of the planning process, when
the planner develops and presents the retirement plan
The client's ability to purchase insurance or investments is reviewed - ✔✔✔ - ANSWER:
in step three of the planning process, in which an analysis and evaluation of financial
status takes place.
During the data gathering process the planner should identify - ✔✔✔ - ANSWER: the
clients retirement account balances, income sources and amounts and determine his
or her risk tolerance.
Net worth is defined as - ✔✔✔ - ANSWER: assets minus liabilitie
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Net cash flow is calculated by - ✔✔✔ - ANSWER: subtracting total cash outflows from
total cash inflows.
College funding is considered a - ✔✔✔ - ANSWER: a lifestyle goal
Foundation goals are those that - ✔✔✔ - ANSWER: contribute to more basic living
needs such as food, insurance, and emergency funds. The coverage of risk exposures
is also considered a foundation financial goal.
You have completed all of the activities involved in the data gathering step of the
financial planning process, including obtaining sufficient quantitative information and
documents. What is the next step of the process - ✔✔✔ - ANSWER: Analyzing and
evaluating the client's information. Once you have gathered all of the appropriate data
needed, the next step is to analyze it.
With some exceptions, most categories of living expenses, such as transportation,
clothing, and housing - ✔✔✔ - ANSWER: decrease during retirement years.
Some expenses may even increase during retirement years. - ✔✔✔ - ANSWER:
such as travel and medical
It is true that Social Security benefits may? - ✔✔✔ - ANSWER: may increase for people
who work past their Social Security full retirement age. Additionally, wages and salaries
earned during retirement will obviously increase retirement income.
longer life spans will result - ✔✔✔ - ANSWER: in a need for more retirement income
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If client retirement funds are insufficient to meet goals - ✔✔✔ - ANSWER: gifts to
children should decrease.
Delaying retirement - ✔✔✔ - ANSWER: will decrease the need for retirement income.
When a client's funds are insufficient to attain retirement goals, it is appropriate for the
planner to suggest - ✔✔✔ - ANSWER: retiring later than initially planned, performing
part-time work during retirement, spending less and saving more during retirement.
During retirement, CLIENT wants to receive $50,000 at the end of each year for the
rest of his life. To calculate the amount that she will need to save, you need to solve
for - ✔✔✔ - ANSWER: ordinary annuity—set calculator at end. You do need to set the
calculator in END mode and solve for ordinary annuity.
If asked to solve for an annuity due (where payments occur at the beginning of the
period) - ✔✔✔ - ANSWER: you would set calculator for BEG.
client wants to retire the 1st of next year. She wants to receive monthly retirement
income payments on the 1st day of each month. To solve the amount of capital required
to provide her the income she wants, you need to solve for –
✔✔✔ - ANSWER: annuity due—set calculator at begin. you would need to solve for
annuity due, and set the calculator at begin.
When gathering data during the retirement planning process, financial goals should be
quantified in dollar amounts and which of the following - ✔✔✔ - ANSWER: established
time frames
CRPC EXAM ACTUAL EXAM|| ACCURATE AND FREQUENTLY TESTED
QUESTIONS AND 100% CORRECT ANSWERS WITH RATIONALES||
LATEST AND COMPLETE UPDATE WITH EXPERT VERIFIED SOLUTIONS||
The Department of Labor requirements regarding advice given to retirement investors
will most likely - ✔✔✔ - ANSWER: INCREASE CLIENT EXPECTATIONS OF ADVISERS AND
PUT DOWNWARD PRESSURE ON FEES
If asking you to solve for an annuity due where payments occur at the beginning of the
period - ✔✔✔ - ANSWER: you would set calculator for BEG.
identifying specific funds in which to invest are discussed on? - ✔✔✔ - ANSWER:
Specific investments are not discussed until step four of the planning process, when
the planner develops and presents the retirement plan
The client's ability to purchase insurance or investments is reviewed - ✔✔✔ - ANSWER:
in step three of the planning process, in which an analysis and evaluation of financial
status takes place.
During the data gathering process the planner should identify - ✔✔✔ - ANSWER: the
clients retirement account balances, income sources and amounts and determine his
or her risk tolerance.
Net worth is defined as - ✔✔✔ - ANSWER: assets minus liabilitie
,2|Page
Net cash flow is calculated by - ✔✔✔ - ANSWER: subtracting total cash outflows from
total cash inflows.
College funding is considered a - ✔✔✔ - ANSWER: a lifestyle goal
Foundation goals are those that - ✔✔✔ - ANSWER: contribute to more basic living
needs such as food, insurance, and emergency funds. The coverage of risk exposures
is also considered a foundation financial goal.
You have completed all of the activities involved in the data gathering step of the
financial planning process, including obtaining sufficient quantitative information and
documents. What is the next step of the process - ✔✔✔ - ANSWER: Analyzing and
evaluating the client's information. Once you have gathered all of the appropriate data
needed, the next step is to analyze it.
With some exceptions, most categories of living expenses, such as transportation,
clothing, and housing - ✔✔✔ - ANSWER: decrease during retirement years.
Some expenses may even increase during retirement years. - ✔✔✔ - ANSWER:
such as travel and medical
It is true that Social Security benefits may? - ✔✔✔ - ANSWER: may increase for people
who work past their Social Security full retirement age. Additionally, wages and salaries
earned during retirement will obviously increase retirement income.
longer life spans will result - ✔✔✔ - ANSWER: in a need for more retirement income
, 3|Page
If client retirement funds are insufficient to meet goals - ✔✔✔ - ANSWER: gifts to
children should decrease.
Delaying retirement - ✔✔✔ - ANSWER: will decrease the need for retirement income.
When a client's funds are insufficient to attain retirement goals, it is appropriate for the
planner to suggest - ✔✔✔ - ANSWER: retiring later than initially planned, performing
part-time work during retirement, spending less and saving more during retirement.
During retirement, CLIENT wants to receive $50,000 at the end of each year for the
rest of his life. To calculate the amount that she will need to save, you need to solve
for - ✔✔✔ - ANSWER: ordinary annuity—set calculator at end. You do need to set the
calculator in END mode and solve for ordinary annuity.
If asked to solve for an annuity due (where payments occur at the beginning of the
period) - ✔✔✔ - ANSWER: you would set calculator for BEG.
client wants to retire the 1st of next year. She wants to receive monthly retirement
income payments on the 1st day of each month. To solve the amount of capital required
to provide her the income she wants, you need to solve for –
✔✔✔ - ANSWER: annuity due—set calculator at begin. you would need to solve for
annuity due, and set the calculator at begin.
When gathering data during the retirement planning process, financial goals should be
quantified in dollar amounts and which of the following - ✔✔✔ - ANSWER: established
time frames
