CRPC MODULE 1 QUESTIONS AND
ANSWERS 100% CORRECT
6 Steps of Retirement Planning Process - 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 - 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 - ANSWER-- Assets
-Liabilities
-Net Worth
The Cash Flow Statement - ANSWER-Cash inflows - Cash outflows = net cash
Income replacement percentages - ANSWER-most american retirees need 70 to 80%
of pre-retirement income
only a rule of thumb
Estimating the length of retirement period - 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
- 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
Expenses that decrease during retirement and increase - 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
ANSWERS 100% CORRECT
6 Steps of Retirement Planning Process - 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 - 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 - ANSWER-- Assets
-Liabilities
-Net Worth
The Cash Flow Statement - ANSWER-Cash inflows - Cash outflows = net cash
Income replacement percentages - ANSWER-most american retirees need 70 to 80%
of pre-retirement income
only a rule of thumb
Estimating the length of retirement period - 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
- 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
Expenses that decrease during retirement and increase - 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
