CRPC Module 1 Exam Questions And Answers Already Graded A+.

6 Steps of Retirement Planning Process - correct answer -Establish and define the client counselor relationship -Gather Client Data and Determine goals and expectations -Determine the Client's Financial status by analyzing and evaluating -Develop and Present the Plan -Implement the Plan -Monitor the Plan Two Qualities of Retirement Goals - correct answer -the retirement goals should be specific and prioritized -should include an event, amount and or time Three Components of a statement of financial position - correct answer - Assets -Liabilities -Net Worth The Cash Flow Statement - correct answer Cash inflows - Cash outflows = net cash Income replacement percentages - correct answer most american retirees need 70 to 80% of pre-retirement income only a rule of thumb Expenses that decrease during retirement and increase - correct answer Decrease - transportation cost, food and housing costs, term life insurance stop, dry cleaning bills, professional fees, clothing Increase - medical and dentals expenses, expenditures on hobbies, recreation and travel 3 Steps in determining the amount of post retirement income - correct answer -identify current assets that could generate income -subtract nonamortized liabilities -group these resources how they will be taxed upon distribution Assets that should NOT be included in a list of retirement income producers - correct answer -emergency funds -funds intended for college education -value of personal residence Two Strategies in living off their retirement assets - correct answer capital preservation capital utilization Estimating the length of retirement period - correct answer average life expectancy make conservative adjustments based upon health and habits add 5 to 10 years for good measure base estimate on life of the individual expected to live the longest 2 Steps in determining the amount of money a client must save and invest for retirement - correct answer -determine the first retirement year income deficit based on inflation-adjusted income sources -determine the total retirement fund needed by projecting the first year income deficit into future terms based upon compounding effects of inflation Difference between annuity due and ordinary annuity - correct answer Annuity Due - is paid at the beginning of a period Ordinary Annuity is paid at the end of a period Financial Goals that conflict retirement goals - correct answer Saving for a house Saving for college education Take care of an elderly parent Emergency Funds Method for Realizing Competing Goals - correct answer Prioritize Goals and Sequence Goals