CRPC Summer 2024 Exam | Questions And Answers Latest {2024- 2025} A+ Graded |
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Prior to providing retirement planning services, the scope of the services to be offered should be
mutually defined by the planner and client. This initial discussion should not include which of the
following topics?
a. disclosing the planner's compensation agreements
b. identifying specific funds in which to invest
c. establishing the duration of the services and engagement
d. identifying the services to be provided - b. identifying specific funds in which to invest
Specific investments are not discussed until step four of the planning process, when the planner
develops and presents the retirement plan. The initial meeting should include a discussion of the
planner's compensation arrangements so that the client can determine precisely how the planner will be
paid. Duration of the engagement and scope of services provided should also be discussed.
The process of data gathering is the second step in the retirement planning process. All of the following
are examples of data to be gathered except:
a. the client's ability to purchase health insurance
b. the balances in retirement accounts
c. income sources and amounts
d. investment and risk tolerance - a. the client's ability to purchase health insurance
, 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.
Frank and Brenda Elliot own $20,000 in cash equivalents, $100,000 in invested assets, and $290,000 in
use assets. The Elliots have an outstanding mortgage of $150,000 and owe $3,500 in credit card debt.
What is the Elliots' net worth?
a. $236,500
b. $256,500
c. $260,000
d. $410,000 - b. $256,500
Net worth is defined as assets minus liabilities. The Elliots have $410,000 in assets and $153,500 in
liabilities. Their net worth is $256,500.
Andy and Lori Cookston had a combined gross salary of $85,000 this year. Other cash inflows amounted
to $9,800. Their fixed cash outflows were $26,300, and their variable cash outflows were $64,700. What
was the Cookstons' net cash flow for the year?
a. $6,000 deficit
b. $3,800
c. $30,100
d. $68,500 - b. $3,800
Net cash flow is calculated by subtracting total cash outflows from total cash inflows. Total cash inflows
of $94,800 minus total cash outflows of $91,000 equals net cash flow of $3,800.
All of the following are considered foundation financial goals except:
a. helping grandchildren with college
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Prior to providing retirement planning services, the scope of the services to be offered should be
mutually defined by the planner and client. This initial discussion should not include which of the
following topics?
a. disclosing the planner's compensation agreements
b. identifying specific funds in which to invest
c. establishing the duration of the services and engagement
d. identifying the services to be provided - b. identifying specific funds in which to invest
Specific investments are not discussed until step four of the planning process, when the planner
develops and presents the retirement plan. The initial meeting should include a discussion of the
planner's compensation arrangements so that the client can determine precisely how the planner will be
paid. Duration of the engagement and scope of services provided should also be discussed.
The process of data gathering is the second step in the retirement planning process. All of the following
are examples of data to be gathered except:
a. the client's ability to purchase health insurance
b. the balances in retirement accounts
c. income sources and amounts
d. investment and risk tolerance - a. the client's ability to purchase health insurance
, 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.
Frank and Brenda Elliot own $20,000 in cash equivalents, $100,000 in invested assets, and $290,000 in
use assets. The Elliots have an outstanding mortgage of $150,000 and owe $3,500 in credit card debt.
What is the Elliots' net worth?
a. $236,500
b. $256,500
c. $260,000
d. $410,000 - b. $256,500
Net worth is defined as assets minus liabilities. The Elliots have $410,000 in assets and $153,500 in
liabilities. Their net worth is $256,500.
Andy and Lori Cookston had a combined gross salary of $85,000 this year. Other cash inflows amounted
to $9,800. Their fixed cash outflows were $26,300, and their variable cash outflows were $64,700. What
was the Cookstons' net cash flow for the year?
a. $6,000 deficit
b. $3,800
c. $30,100
d. $68,500 - b. $3,800
Net cash flow is calculated by subtracting total cash outflows from total cash inflows. Total cash inflows
of $94,800 minus total cash outflows of $91,000 equals net cash flow of $3,800.
All of the following are considered foundation financial goals except:
a. helping grandchildren with college
