CRPC FINAL EXAM 2026|ACTUAL 200 QUESTIONS
AND ANSWERS|GRADED A+|100% VERIFIED
Identify three current trends in retirement planning. (There are 4 discussed)
ANSWER :->> 1. There is a decrease in the likelihood of today's businesses
offering defined benefit (DB) plans.
2. increased focus on planning for longevity
3. expansion of employer-sponsored financial wellness initiatives
4. expansion of plan distribution options
Discuss challenges associated with the shift from defined benefit to defined
contribution plans
ANSWER :->> With defined contribution plans, risks are borne by plan
participants/employees rather than by plan sponsors/employers (as with
defined benefit plans). Many of these employees have little to no financial
expertise
Identify the seven steps of the retirement planning process.
ANSWER :->> 1. understanding the client's personal and financial
circumstances
2. identifying and selecting goals
3. analyzing the client's current course of action and potential alternative
course(s) of action
,4. developing the retirement planning recommendation(s)
5. presenting the recommendation(s)
6. implementing the recommendation(s)
7. monitoring progress and updating
Identify and describe the three key components of a statement of financial
position
ANSWER :->> 1. Assets. Assets are what the client owns: cash, securities,
property, and other resources.
2. Liabilities. Liabilities are what the client owes: credit card debts, mortgages,
auto note balances, etc.
3. Net worth. Net worth is defined as assets minus liabilities. It represents
what the client would have left over if they liquidated all assets at fair market
value and used the proceeds to pay off all liabilities.
Describe the cash flow statement and the equation that defines it.
ANSWER :->> The cash flow statement is a financial statement that describes
cash inflows (from salaries, investment returns, rents, etc.) and cash outflows
(for living expenses, loan payments, savings, taxes, etc.). It is defined by the
following equation:
Cash inflows - Cash outflows = Net cash surplus (deficit)
,Which statement would the following amounts be found on, the Statement of
Financial Position or the Cash Flow Statement? Place "SFP" beside the items
that belong on the statement of financial position and "CFS" beside the items
that belong on the cash flow statement.
a. Taxes
b. Checking account
c. Truck
d. Salary
e. Car payments
f. Credit card balance
g. Dividends received
h. 401(k) balance
i. Mortgage payment
j. Mortgage Balance
ANSWER :->> CFS a. Taxes
SFP b. Checking account
SFP c. Truck
CFS d. Salary
CFS e. Car payments
SFP f. Credit card balance
CFS g. Dividends received
, SFP h. 401(k) balance
CFS i. Mortgage payment
SFP j. Mortgage Balance
The point is that a statement of financial positions is a snapshot of account
balances one day. A cash flow statement covers a series of payments over a
time period, usually one month or one year. A year is better because some cash
flows (like real estate taxes) are not monthly. Thus, "taxes" would mean taxes
paid during the year. If someone was behind on their taxes, they would owe
the IRS a balance and the item would be called something like "taxes in
arrears" or "balance owed to the IRS.
What two qualities should retirement goals have to make them useful in
planning?
ANSWER :->> To be useful in planning, retirement goals should be specific and
prioritized. A specific goal indicates an event, an amount, and/or a time
Why is it important for clients to have goals after they retire?
ANSWER :->> Goals help people have a purpose. They also give structure.
Many goals after retirement should be relational. For example, how many
times will they meet with friends a week? What will they do with their time?
What are "income replacement percentages"
AND ANSWERS|GRADED A+|100% VERIFIED
Identify three current trends in retirement planning. (There are 4 discussed)
ANSWER :->> 1. There is a decrease in the likelihood of today's businesses
offering defined benefit (DB) plans.
2. increased focus on planning for longevity
3. expansion of employer-sponsored financial wellness initiatives
4. expansion of plan distribution options
Discuss challenges associated with the shift from defined benefit to defined
contribution plans
ANSWER :->> With defined contribution plans, risks are borne by plan
participants/employees rather than by plan sponsors/employers (as with
defined benefit plans). Many of these employees have little to no financial
expertise
Identify the seven steps of the retirement planning process.
ANSWER :->> 1. understanding the client's personal and financial
circumstances
2. identifying and selecting goals
3. analyzing the client's current course of action and potential alternative
course(s) of action
,4. developing the retirement planning recommendation(s)
5. presenting the recommendation(s)
6. implementing the recommendation(s)
7. monitoring progress and updating
Identify and describe the three key components of a statement of financial
position
ANSWER :->> 1. Assets. Assets are what the client owns: cash, securities,
property, and other resources.
2. Liabilities. Liabilities are what the client owes: credit card debts, mortgages,
auto note balances, etc.
3. Net worth. Net worth is defined as assets minus liabilities. It represents
what the client would have left over if they liquidated all assets at fair market
value and used the proceeds to pay off all liabilities.
Describe the cash flow statement and the equation that defines it.
ANSWER :->> The cash flow statement is a financial statement that describes
cash inflows (from salaries, investment returns, rents, etc.) and cash outflows
(for living expenses, loan payments, savings, taxes, etc.). It is defined by the
following equation:
Cash inflows - Cash outflows = Net cash surplus (deficit)
,Which statement would the following amounts be found on, the Statement of
Financial Position or the Cash Flow Statement? Place "SFP" beside the items
that belong on the statement of financial position and "CFS" beside the items
that belong on the cash flow statement.
a. Taxes
b. Checking account
c. Truck
d. Salary
e. Car payments
f. Credit card balance
g. Dividends received
h. 401(k) balance
i. Mortgage payment
j. Mortgage Balance
ANSWER :->> CFS a. Taxes
SFP b. Checking account
SFP c. Truck
CFS d. Salary
CFS e. Car payments
SFP f. Credit card balance
CFS g. Dividends received
, SFP h. 401(k) balance
CFS i. Mortgage payment
SFP j. Mortgage Balance
The point is that a statement of financial positions is a snapshot of account
balances one day. A cash flow statement covers a series of payments over a
time period, usually one month or one year. A year is better because some cash
flows (like real estate taxes) are not monthly. Thus, "taxes" would mean taxes
paid during the year. If someone was behind on their taxes, they would owe
the IRS a balance and the item would be called something like "taxes in
arrears" or "balance owed to the IRS.
What two qualities should retirement goals have to make them useful in
planning?
ANSWER :->> To be useful in planning, retirement goals should be specific and
prioritized. A specific goal indicates an event, an amount, and/or a time
Why is it important for clients to have goals after they retire?
ANSWER :->> Goals help people have a purpose. They also give structure.
Many goals after retirement should be relational. For example, how many
times will they meet with friends a week? What will they do with their time?
What are "income replacement percentages"
