Question 1 Utilizing investment assets to gross pay benchmarks, which of the following individuals is likely on target with their investment
... [Show More] assets?
Question 2 Your new client, Kerri, age 35, came into your office today. She provided you with the following information for the year. Income $100,000 Taxes $18,000 Rent $14,000 Living Expenses $40,000 Credit Card Debt $12,000 Savings $5,000 Student Loan Payments $5,000 Car Payment $6,000 After receiving this information, you created a pie chart to visually depict where her income was spent. Utilizing targeted benchmarks, which of the following statements are you most likely to make during you next meeting?
Question 6 Lori is an assistant to a patent lawyer and earns $40,000. She pays $500 per month on her mortgage, her homeowners insurance is $2,000 per year, her taxes are $2,000, her utilities are $5,000 per year and she pays $4,000 in credit card bills each year. Her housing ratio 1 is equal to 37.5%.
Question 7 Mark and Caren are 36 years old; they plan on retiring at age 62 and expect to live until age 95. They currently earn $250,000 and expect to need $200,000 in retirement. They also expect that Social Security will provide $40,000 of benefits in today’s dollars at age 62. They are saving $15,000 each in their 401(k) plans and just had a baby boy they named Albert Rufus or AR for short. They want to save for AR’s college education, which they expect will cost $20,000 in today’s dollars, and they are willing to fund 4 years of college. They were told that college costs are increasing at 7% per year, while general inflation is 3%. They currently have $150,000 saved in each of their 401(k) plans, and they are averaging a 9% rate of return and expect to continue to earn the same return over time. Based on this information, what should they do?
Question 9 CJ bought the following assets this year. Which of these purchases would be considered “bad debt?”
Question 10 Robin met with you recently to make some changes to her insurance needs. You have made several recommendations. Which of these recommendations will have a positive cash flow impact from an insurance perspective?
Question 11 Your client, Tom, asked you to prepare his financial statements. He believes that his wife is the root of all of their financial problems because of her spending habits. His wife, on the other hand, believes that most of their money goes to pay routine expenses like, house, auto, etc. Which financial statement will help them resolve this disagreement?
Question 12 Craig’s financial planner is preparing his balance sheet. Which of the following would be considered an “investment asset?”
Question 15 A client, Marie, age 35, came into a financial planner’s office today. She provides the planner with the following information for the upcoming year: Income $100,000 Principal and Interest payments on home mortgage $14,000 Homeowners insurance $1,000 Property taxes $5,000 Living Expenses $40,000 Credit Card Debt Payments $12,000 Savings $5,000 Student Loan Payments $5,000 Car Payment $6,000 When considering the targeted benchmarks, which of the following statements is the planner most likely to make during the next meeting? [Show Less]
