3/27/25, 8:55 CRPC MODULE 1 Flashcards |
AM
CRPC MODULE 1 EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED
Terms in this set (70)
Establish and define the client counselor relationship, gather client data and
The 6 steps of the retirement
determine goals and expectations, determine the clients financial status, develop
planning process include...
and present the retirement plan, implement the plan, monitor the plan
What two qualities should retirement goals Specific and prioritized
have to make them useful in planning?
A specific goal indicates An event, an amount and/or a time.
When there are multiple goals they Must be prioritized
What are the three key components of a Assets, liabilities, & networth
statement of financial position
The cash flow statement is A financial statement that describes cash inflows and cash outflows
Net Cash Surplus = Cash inflows - cash outflows
Rough guides used in determining the amount of income needed in retirement,
Income replacement percentages are
using pre-retirement as a base
Most American retirees need --- for 70-80% for retirement replacement
retirement replacement percentages
Caution should be used with using They are simply rules of thumb, and goals can change
replacement percentages because
Current expenses that are likely Transportation costs, food and housing, term life insurance and disability premiums,
to decrease in retirement work associated fees
include
Expenses that increase during retirement Medical and dental expenses, and expenditures on hobbies, recreation and travel
include
Client assets that should not be included Emergency funds, funds intended for college, value of personal residence
on retirement income producers...
Two strategies retirees can use in living Capital preservation, and capital utilization
off their retirement assets
Followers of this strategy live off the Capital Preservation
income produced by their assets without
touching the principal
In this strategy, both income and principal Capital utilization
are tapped for retirement living expenses.
This strategy assures that they will not Capital preservation
outlive their incomes, a very large asset
pool is required to follow this strategy,
These retirees must make a good estimate Capital utilization
of their life spans, otherwise they risk
outliving their incomes
A prudent approach to estimating the Use average life expectancy figures as a starting point | Make conservative
duration of retirement for planning adjustments based upon the clients personal health, habits, and family history of
purposes is as follows: longevity | Add 5 to 10 years for good measure
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4
AM
CRPC MODULE 1 EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED
Terms in this set (70)
Establish and define the client counselor relationship, gather client data and
The 6 steps of the retirement
determine goals and expectations, determine the clients financial status, develop
planning process include...
and present the retirement plan, implement the plan, monitor the plan
What two qualities should retirement goals Specific and prioritized
have to make them useful in planning?
A specific goal indicates An event, an amount and/or a time.
When there are multiple goals they Must be prioritized
What are the three key components of a Assets, liabilities, & networth
statement of financial position
The cash flow statement is A financial statement that describes cash inflows and cash outflows
Net Cash Surplus = Cash inflows - cash outflows
Rough guides used in determining the amount of income needed in retirement,
Income replacement percentages are
using pre-retirement as a base
Most American retirees need --- for 70-80% for retirement replacement
retirement replacement percentages
Caution should be used with using They are simply rules of thumb, and goals can change
replacement percentages because
Current expenses that are likely Transportation costs, food and housing, term life insurance and disability premiums,
to decrease in retirement work associated fees
include
Expenses that increase during retirement Medical and dental expenses, and expenditures on hobbies, recreation and travel
include
Client assets that should not be included Emergency funds, funds intended for college, value of personal residence
on retirement income producers...
Two strategies retirees can use in living Capital preservation, and capital utilization
off their retirement assets
Followers of this strategy live off the Capital Preservation
income produced by their assets without
touching the principal
In this strategy, both income and principal Capital utilization
are tapped for retirement living expenses.
This strategy assures that they will not Capital preservation
outlive their incomes, a very large asset
pool is required to follow this strategy,
These retirees must make a good estimate Capital utilization
of their life spans, otherwise they risk
outliving their incomes
A prudent approach to estimating the Use average life expectancy figures as a starting point | Make conservative
duration of retirement for planning adjustments based upon the clients personal health, habits, and family history of
purposes is as follows: longevity | Add 5 to 10 years for good measure
1/
4
