CRPC 2024 Exam Questions with Answers
If compensation falls into the golden parachute category, - Answer-the employer will lose the deduction on any excess parachute payments and the employee will be charged a nondeductible 20% excise tax on any excess parachute payments.
Which one of the follo...
CRPC 2024 Exam Questions with
Answers
If compensation falls into the golden parachute category, - Answer-the employer will
lose the deduction on any excess parachute payments and the employee will be
charged a nondeductible 20% excise tax on any excess parachute payments.
Which one of the following types of distributions are eligible for rollover treatment -
Answer-A lump-sum payment from a profit sharing plan payable upon separation from
service is eligible for rollover treatment.
A lump-sum payment from a profit sharing plan payable upon separation from service is
- Answer-eligible for rollover treatment.
The following distributions are not eligible for rollover treatment: - Answer-1.
Distributions that are part of a series of substantially equal periodic payments are not
eligible for rollover treatment.
2. Distributions that are made to comply with the minimum distribution requirements are
not eligible for rollover treatment.
3. The nontaxable portion of any IRA distribution is not eligible for rollover treatment.
The spouse may waive the qualified joint and survivor annuity (QJSA) option via -
Answer-via written consent, which includes acknowledging the effect of the waiver and
the naming of another beneficiary.
The suitability of a particular investment would depend on - Answer-a client's goals, risk
tolerance, and time horizon.
The investment policy statement is - Answer-a blueprint for the financial management
process that is aligned with the goals of the client but also in line with market reality.
The lower the coupon rate - Answer-the greater the price volatility of a bond. The
coupon rate is inversely related to the bond's price volatility.
Total return cannot be determined without - Answer-knowing the purchase price.
Small firm investors - Answer-should have a long time horizon.
The small firm effect is - Answer-an anomaly to the efficient market hypothesis since
greater returns over time have been realized commensurate with the associated risk.
,Small firm investors sell when 40% of the company's shares become owned by
institutional investors. Small firm investors should have a long time horizon due to the
increased risk/volatility associated with this investment strategy.
The Department of Labor requirements regarding advice given to retirement investors
will most likely - Answer-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 - Answer-you would set calculator for BEG.
identifying specific funds in which to invest are discussed on? - Answer-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 - Answer-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 - Answer-the clients
retirement account balances, income sources and amounts and determine his or her
risk tolerance.
Net worth is defined as - Answer-assets minus liabilitie
Net cash flow is calculated by - Answer-subtracting total cash outflows from total cash
inflows.
College funding is considered a - Answer-a lifestyle goal
Foundation goals are those that - Answer-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 - Answer-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 - Answer-decrease during retirement years.
Some expenses may even increase during retirement years. - Answer-such as travel
and medical
, It is true that Social Security benefits may? - Answer-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 - Answer-in a need for more retirement income
If client retirement funds are insufficient to meet goals - Answer-gifts to children should
decrease.
Delaying retirement - Answer-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 - Answer-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 -
Answer-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) - Answer-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 - Answer-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 - Answer-established time
frames
When saving on a level basis - Answer-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 - Answer-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 - Answer-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 - Answer-a client's net worth, which is defined
as assets minus liabilities, as of a specific date.
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