All of the following changes in planning assumptions will increase the expected amount a client will need in order to achieve his retirement goals EXCEPT

Select one:

a. A decrease in the assumed rate of investment.

b. An increase in the assumed rate of inflation.

c. An increase in the projected expenses during retirement.

d. A decrease in the assumed life expectancy.

A letter of authority is an important document to prove that client has agreed to grant his permission to implement the retirement plan. The letter typically covers the following EXCEPT

Select one:

a. The plan and the assumption adopted in the plan reflect only the future situation of the client

b. The client understand the implication of the disclosure and disclaimers stated in the plan

c. The client is informed of the fees, charges and commission involved.

d. The client has clearly and adequately understood the content of the retirement plan

Which of the following statements is FALSE?

Select one:

a. Accumulation phase for an individual starts when his resources for retirement are first created.

b. The retirement phase is the period where the individual has ceased his active working life.

c. Most people will agree that accumulation of retirement resources starts with employment.

d. Retiree will not be able to derive any active income during retirement phase.

Which of the following factor is NOT needed for the purpose of computing required retirement capital under capital conservation?

Select one:

a. Inflation rate

b. First year retirement income

c. Number of years in retirement phase

d. Rate of return in the retirement account

Mr Raymond has decided to choose a retirement plan under the capital conservation approach with the total lump sum needed for his retirement would be RM3 million. This implies that

Select one:

a. All statements are correct.

b. He will be able to enjoy an annuity if income plus RM3 million for his heir anytime upon his death.

c. He will be able to enjoy unending source of retirement income as long as he lives

d. He will be able to have RM3 million for retirement al all time

Daniel has another 20 years to retire. He wishes to receive RM100,000 as his first retirement income. If he put all his retirement fund in fixed deposit paying a return of 3% per annum, how much should his required retirement capital be if the fund is to last for 18 years?

Select one:

a. RM 1,016,612

b. RM 1,216,000

c. RM 1,416,612

d. RM 1,816,000

Which of the following is an example of active income?

Select one:

a. Rental income from an apartment.

b. Franchise fee of a fast food outllet.

c. Dividend income of shares bought last year.

d. Monthly commission from insurance sales.

Ghazali, age 40, currently earns RM100,000 per annum and wants to retire at age 60. If his salary grows at a rate of 5% per annum, what is the amount of the first year retirement income if the replacement ratio method used represents 80% of his last dawn salary?

Select one:

a. RM265,330

b. RM212,264

c. RM105,000

d. RM84,000

Coefficient of variation is referring to measurement of

Select one:

a. return per unit of risk.

b. risk per unit of return.

c. the portfolio risk.

d. the risk of investment.

Freddy (35 years old) has a retirement portfolio of investment as follows:Asset (amount, return) Real estate(450,000,5%); Unit trust(50,000,8%);Blue chip shares(230,000,12%). What will the value of the portfolio when Ahmad retires at 55 years old?

Select one:

a. RM3,618,781

b. RM3,645,679

c. RM730,000

d. RM204,170