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CRPC Final Exam Exam Form A And B Complete 500+
Questions With Detailed Verified Answers (100%
Correct Answers)
Question 1
A 55-year-old client earns $120,000 annually and wants to
replace 80% of pre-retirement income. Using the capital
preservation approach with a 4% withdrawal rate and a 25-
year retirement, what is the required retirement capital?
A) $960,000
B) $2,000,000
C) $2,400,000
D) $3,000,000
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Answer: C
Rationale: 80% of $120,000 = $96,000 needed annually.
With 4% withdrawal: $96,.04 = $2,400,000. Capital
preservation assumes no principal depletion, only spending
earnings.
Question 2
Which of the following is NOT a component of the “retirement
planning gap”?
A) Social Security benefits
B) Pension income
C) Home equity in primary residence
D) Personal savings
Answer: C
Rationale: The retirement gap is the shortfall between needed
income and guaranteed/reliable sources (SS, pension,
annuities). Primary residence equity is illiquid and typically
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excluded from income gap calculations unless downsizing is
specifically planned.
Question 3
Scenario: Maria, 62, has $500,000 in a 401(k), $200,000 in
Roth IRA, and expects $1,800/month Social Security at FRA
67. She wants to retire at 65. Her annual expenses are
$60,000. Using the annuity method with a 30-year horizon
and 3% inflation, which statement is TRUE?
A) She has a surplus of ~$150,000
B) She has a shortfall of ~$250,000
C) Her Roth IRA should be spent first to reduce taxes
D) She should delay Social Security to 70 regardless of health
Answer: B
Rationale: Estimating PV of $60,000/year for 30 years at 3%
inflation and 5% discount rate = ~$1.2M needed. SS at 65
(reduced) ~$1,500/month = $18,000/year → PV
,Page 2 of 253
CRPC Final Exam Exam Form A And B Complete 500+
Questions With Detailed Verified Answers (100%
Correct Answers)
Question 1
A 55-year-old client earns $120,000 annually and wants to
replace 80% of pre-retirement income. Using the capital
preservation approach with a 4% withdrawal rate and a 25-
year retirement, what is the required retirement capital?
A) $960,000
B) $2,000,000
C) $2,400,000
D) $3,000,000
,Page 3 of 253
Answer: C
Rationale: 80% of $120,000 = $96,000 needed annually.
With 4% withdrawal: $96,.04 = $2,400,000. Capital
preservation assumes no principal depletion, only spending
earnings.
Question 2
Which of the following is NOT a component of the “retirement
planning gap”?
A) Social Security benefits
B) Pension income
C) Home equity in primary residence
D) Personal savings
Answer: C
Rationale: The retirement gap is the shortfall between needed
income and guaranteed/reliable sources (SS, pension,
annuities). Primary residence equity is illiquid and typically
, Page 4 of 253
excluded from income gap calculations unless downsizing is
specifically planned.
Question 3
Scenario: Maria, 62, has $500,000 in a 401(k), $200,000 in
Roth IRA, and expects $1,800/month Social Security at FRA
67. She wants to retire at 65. Her annual expenses are
$60,000. Using the annuity method with a 30-year horizon
and 3% inflation, which statement is TRUE?
A) She has a surplus of ~$150,000
B) She has a shortfall of ~$250,000
C) Her Roth IRA should be spent first to reduce taxes
D) She should delay Social Security to 70 regardless of health
Answer: B
Rationale: Estimating PV of $60,000/year for 30 years at 3%
inflation and 5% discount rate = ~$1.2M needed. SS at 65
(reduced) ~$1,500/month = $18,000/year → PV
