Question11

Which of the following is categorised as non-income producing asset?

Select one:

a.Rm250,000 in Sukuk

b.A mini-market

c.Double-storey family house

d.An indoor-game sport center

Question12

The meaning of first year retirement income refers to

Select one:

a.The amount of last drawn salary times the number of years in retirement

b.The amount of income a retiree needs at the starting of his retirement

c.70% of last drawn salary of the retiree

d.The income that retiree will receive during his retirement

Question13

Which of the following funds will you recommend to your client is his required rate of return to achieve his retirement goal is 5% and has moderate risk tolerance level?

Select one:

a.Balance fund with expected return of 8%

b.Equity fund with expected return of 13%

c.A government bond with expected return of 4%

d.Derivative ssecurities with expected return of 15%

Question14

A periodic reviews on the investment performance of client's retirement portfolio is important to

Select one:

a.check the relevancy of the investment in meeting the retirement goals

b.Check the investment performance in the portfolio and report them to the client

c.Revising the earlier forecast to make sure it reflect the current situation

d.All statements are correct.

Question15

The following data represent Faridah's expenses: Living expenses RM50,000 (inflation rate 4% p.a.); Travel RM10,000 (inflation rate 7% p.a.);Other expenses RM25,000 (inflation rate 7% p.a.). Based on the Expense method, calculate Mary's first year retirement income 10 years from now (choose your nearest answer).

Select one:

a.RM167,207

b.RM142,862

c.RM125,820

d.RM88,400

Question16

Which of the following statements concerning risk tolerance of an individual is FALSE?

Select one:

a.Wealth increase a person's risk tolerance.

b.Marriage reduces risk taking

c.Female are generally risk averse compared to men.

d.Older persons have higher risk appetite as compared to younger ones.

Question17

Which of the following statements is FALSE regarding the data gathering process?

Select one:

a.Life-style during retirement is a qualitative issue

b.Subjective assumptions are not important

c.Assumptions are important to help clients set realistic goals

d.Inflation rates, number of years to retirement are quantitative issues.

Question18

The following ways to help clients overcome inadequate retirement resources are correct EXCEPT

Select one:

a.Relocating to a less expansive home.

b.Continue to work after retirement.

c.Increasing the assumed EPF rate of return.

d.Sub-letting vacant rooms in their residence.

Question19

Which of the following statement concerning "risk" from the perspective of a financial planner is TRUE?

Select one:

a.A risk that is not viewed from a reality perspective is actually objective risk.

b.The decision to invest in a risky investment needs to take into account the probability of success versus failure.

c.Uncertainty is a psychological reaction to the lack of knowledge about the future where the probabilities are established.

d.When an investment gives less than the anticipated return or sustains a loss of the principal, a pure risk situation is experienced.

Question20

Retirement planning requires fulfilling the various needs of today's retiree and must be approached from several perspectives. What is the most essential retirement objective?

Select one:

a.Improving retirement lifestyle

b.Achieving financial freedom

c.Retiring early

d.Maintaining pre-retirement standard of living