1.The first recommendation a financial planner often addresses with clients is:

• A. The need to have a plan to pay for their childrens college expenses
• B. Retirement planning, as marketing time is a critical component in meeting those goals
• C. Establishment of an adequate emergency fund
• D. Adequacy of disability income insurance

2.Kate is the actuary for Principal Incs qualified defined benefit pension plan. Which of the following is true regarding actuarial assumptions and relationship to pension plan costs?

• A. An increase in expected inflation will lower plan costs
• B. An increase in life expectancy will raise plan costs
• C. An increase in investment returns will increase plan costs
• D. An actuary does not need to worry about pension plan costs due to Pension Benefit Guaranty Corporation