3/27/25, 8:54 CRPC Flashcards |
AM
CRPC EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED
Terms in this set (233)
If asking you to solve for an annuity due you would set calculator for BEG.
where payments occur at the beginning of
the period
The Department of Labor requirements INCREASE CLIENT EXPECTATIONS OF ADVISERS AND PUT DOWNWARD
regarding advice given to retirement PRESSURE ON FEES
investors will most likely
identifying specific funds in which to invest Specific investments are not discussed until step four of the planning process, when
are discussed on? the planner develops and presents the retirement plan
The client's ability to purchase insurance or in step three of the planning process, in which an analysis and evaluation of financial
investments is reviewed status takes place.
During the data gathering process the the clients retirement account balances, income sources and amounts and
planner should identify 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
contribute to more basic living needs such as food, insurance, and emergency funds.
Foundation goals are those that
The coverage of risk exposures is also considered a foundation financial goal.
You have completed all of the activities Analyzing and evaluating the client's information. Once you have gathered all of the
involved in the data gathering step of the appropriate data needed, the next step is to analyze it.
financial planning process, including
obtaining sufficient quantitative information
and documents. What is the next step
of the process
With some exceptions, most categories of decrease during retirement years.
living expenses, such as transportation,
clothing, and housing
Some expenses may even increase during such as travel and medical
retirement years.
may increase for people who work past their Social Security full retirement age.
It is true that Social Security benefits may? 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 gifts to children should decrease.
meet goals
Delaying retirement will decrease the need for retirement income.
When a client's funds are insufficient to retiring later than initially planned, performing part-time work during retirement,
attain retirement goals, it is appropriate for spending less and saving more during retirement.
the planner to suggest
1/
6
, 3/27/25, 8:54 CRPC Flashcards |
AM
During retirement, CLIENT wants to receive ordinary annuity—set calculator at end. You do need to set the calculator in END
$50,000 at the end of each year for the mode and solve for ordinary annuity.
rest of his life. To calculate the amount
that she will need to save, you need to
solve for
If asked to solve for an annuity due (where you would set calculator for BEG.
payments occur at the beginning of the
period)
client wants to retire the 1st of next year. annuity due—set calculator at begin. you would need to solve for annuity due, and
She wants to receive monthly retirement set the calculator at begin.
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
When gathering data during the retirement established time frames
planning process, financial goals should be
quantified in dollar amounts and which of
the following
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 should help define financial goals so that they are quantified in dollar amounts and
realistic goals, the planner have established time frames instead of remaining general in nature.
type, ownership, and priority but those are not ways of quantifying them and making
Goals may be organized based on 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 "replacement ratio" and is used as a rough guide in determining the amount
name for of income needed in retirement relative to pre-retirement income.
One of the purposes of lifelong wealth is to provide for a comfortable retirement.
accumulation
Industry standards typically consider 1 year to be long-term liabilities.
expenses lasting beyond ____
those that are payable over a period greater than one year. Mortgage notes and
Long-term liabilities are
auto loans are examples that fall into this category.
Which of the following types of information his or her desired age of retirement, the client's assumption for the long-term rate of
are important to gather from a client inflation, investments the client prefers not to use, number of children client and
prior to developing retirement planning spouse intend to have
recommendations?
the age of retirement is required for determining investment and life insurance needs.
to be gathered from the client. While the planner may help refine the assumption, it
Economic assumptions need
is nonetheless the client's assumption that is needed.
Planners also need to gather information investments the client absolutely does not want to include in an investment mix.
on
to what may be needed for education expenses, how children will affect family
The number of children a couple may have
income, and creates the need for other forms of planning such as trusts and
provides an indication as
guardianship issues.
2/
6
AM
CRPC EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED
Terms in this set (233)
If asking you to solve for an annuity due you would set calculator for BEG.
where payments occur at the beginning of
the period
The Department of Labor requirements INCREASE CLIENT EXPECTATIONS OF ADVISERS AND PUT DOWNWARD
regarding advice given to retirement PRESSURE ON FEES
investors will most likely
identifying specific funds in which to invest Specific investments are not discussed until step four of the planning process, when
are discussed on? the planner develops and presents the retirement plan
The client's ability to purchase insurance or in step three of the planning process, in which an analysis and evaluation of financial
investments is reviewed status takes place.
During the data gathering process the the clients retirement account balances, income sources and amounts and
planner should identify 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
contribute to more basic living needs such as food, insurance, and emergency funds.
Foundation goals are those that
The coverage of risk exposures is also considered a foundation financial goal.
You have completed all of the activities Analyzing and evaluating the client's information. Once you have gathered all of the
involved in the data gathering step of the appropriate data needed, the next step is to analyze it.
financial planning process, including
obtaining sufficient quantitative information
and documents. What is the next step
of the process
With some exceptions, most categories of decrease during retirement years.
living expenses, such as transportation,
clothing, and housing
Some expenses may even increase during such as travel and medical
retirement years.
may increase for people who work past their Social Security full retirement age.
It is true that Social Security benefits may? 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 gifts to children should decrease.
meet goals
Delaying retirement will decrease the need for retirement income.
When a client's funds are insufficient to retiring later than initially planned, performing part-time work during retirement,
attain retirement goals, it is appropriate for spending less and saving more during retirement.
the planner to suggest
1/
6
, 3/27/25, 8:54 CRPC Flashcards |
AM
During retirement, CLIENT wants to receive ordinary annuity—set calculator at end. You do need to set the calculator in END
$50,000 at the end of each year for the mode and solve for ordinary annuity.
rest of his life. To calculate the amount
that she will need to save, you need to
solve for
If asked to solve for an annuity due (where you would set calculator for BEG.
payments occur at the beginning of the
period)
client wants to retire the 1st of next year. annuity due—set calculator at begin. you would need to solve for annuity due, and
She wants to receive monthly retirement set the calculator at begin.
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
When gathering data during the retirement established time frames
planning process, financial goals should be
quantified in dollar amounts and which of
the following
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 should help define financial goals so that they are quantified in dollar amounts and
realistic goals, the planner have established time frames instead of remaining general in nature.
type, ownership, and priority but those are not ways of quantifying them and making
Goals may be organized based on 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 "replacement ratio" and is used as a rough guide in determining the amount
name for of income needed in retirement relative to pre-retirement income.
One of the purposes of lifelong wealth is to provide for a comfortable retirement.
accumulation
Industry standards typically consider 1 year to be long-term liabilities.
expenses lasting beyond ____
those that are payable over a period greater than one year. Mortgage notes and
Long-term liabilities are
auto loans are examples that fall into this category.
Which of the following types of information his or her desired age of retirement, the client's assumption for the long-term rate of
are important to gather from a client inflation, investments the client prefers not to use, number of children client and
prior to developing retirement planning spouse intend to have
recommendations?
the age of retirement is required for determining investment and life insurance needs.
to be gathered from the client. While the planner may help refine the assumption, it
Economic assumptions need
is nonetheless the client's assumption that is needed.
Planners also need to gather information investments the client absolutely does not want to include in an investment mix.
on
to what may be needed for education expenses, how children will affect family
The number of children a couple may have
income, and creates the need for other forms of planning such as trusts and
provides an indication as
guardianship issues.
2/
6
