CRPC EXAM | Questions And Answers Latest {2024- 2025} A+ Graded | 100% Verified
The Department of Labor requirements regarding advice given to retirement investors will most likely -
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 - you
would set calculator for BEG.
identifying specific funds in which to invest are discussed on? - 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 - 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 - the clients retirement account balances,
income sources and amounts and determine his or her risk tolerance.
Net worth is defined as - assets minus liabilitie
Net cash flow is calculated by - subtracting total cash outflows from total cash inflows.
College funding is considered a - a lifestyle goal
Foundation goals are those that - 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 - 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
- decrease during retirement years.
Some expenses may even increase during retirement years. - such as travel and medical
It is true that Social Security benefits may? - 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 - in a need for more retirement income
If client retirement funds are insufficient to meet goals - gifts to children should decrease.
Delaying retirement - 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 - 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 - 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) - 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 - 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 - established time frames
, When saving on a level basis - the inflation rate does not come into play if the question notes on a level
basis.
When assisting the client in establishing realistic goals, the planner - should help define financial goals so
that they are quantified in dollar amounts and have established time frames instead of remaining
general in nature.
Goals may be organized based on - type, ownership, and priority but those are not ways of quantifying
them and making them more specific.
by type of goal
A statement of financial position shows - a client's net worth, which is defined as assets minus liabilities,
as of a specific date.
A cash flow statement shows - a client's net cash flow or deficit over a period of time usually one year.
Income replacement percentage is another name for - "replacement ratio" and is used as a rough guide
in determining the amount of income needed in retirement relative to pre-retirement income.
One of the purposes of lifelong wealth accumulation - is to provide for a comfortable retirement.
Industry standards typically consider expenses lasting beyond ____ - 1 year to be long-term liabilities.
Long-term liabilities are - those that are payable over a period greater than one year. Mortgage notes
and auto loans are examples that fall into this category.
Which of the following types of information are important to gather from a client prior to developing
retirement planning recommendations? - his or her desired age of retirement, the client's assumption
for the long-term rate of inflation, investments the client prefers not to use, number of children client
and spouse intend to have
The Department of Labor requirements regarding advice given to retirement investors will most likely -
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 - you
would set calculator for BEG.
identifying specific funds in which to invest are discussed on? - 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 - 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 - the clients retirement account balances,
income sources and amounts and determine his or her risk tolerance.
Net worth is defined as - assets minus liabilitie
Net cash flow is calculated by - subtracting total cash outflows from total cash inflows.
College funding is considered a - a lifestyle goal
Foundation goals are those that - 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 - 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
- decrease during retirement years.
Some expenses may even increase during retirement years. - such as travel and medical
It is true that Social Security benefits may? - 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 - in a need for more retirement income
If client retirement funds are insufficient to meet goals - gifts to children should decrease.
Delaying retirement - 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 - 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 - 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) - 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 - 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 - established time frames
, When saving on a level basis - the inflation rate does not come into play if the question notes on a level
basis.
When assisting the client in establishing realistic goals, the planner - should help define financial goals so
that they are quantified in dollar amounts and have established time frames instead of remaining
general in nature.
Goals may be organized based on - type, ownership, and priority but those are not ways of quantifying
them and making them more specific.
by type of goal
A statement of financial position shows - a client's net worth, which is defined as assets minus liabilities,
as of a specific date.
A cash flow statement shows - a client's net cash flow or deficit over a period of time usually one year.
Income replacement percentage is another name for - "replacement ratio" and is used as a rough guide
in determining the amount of income needed in retirement relative to pre-retirement income.
One of the purposes of lifelong wealth accumulation - is to provide for a comfortable retirement.
Industry standards typically consider expenses lasting beyond ____ - 1 year to be long-term liabilities.
Long-term liabilities are - those that are payable over a period greater than one year. Mortgage notes
and auto loans are examples that fall into this category.
Which of the following types of information are important to gather from a client prior to developing
retirement planning recommendations? - his or her desired age of retirement, the client's assumption
for the long-term rate of inflation, investments the client prefers not to use, number of children client
and spouse intend to have
