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CTFA – Certified Trust and Financial Advisor

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Showing 4–6 of 20 questions

Question 4

Frank, age 55, is considering adopting a lifestyle investment technique as he aims to build up his personal pension prior to retirement. He should be aware that:

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    The asset mix of the fund will be adjusted automatically on pre-determined dates
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    His ongoing exposure to equities will reduce with lifestyling
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    After 10 years, a maximum of 25% of the investments will be in bonds
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    Lifestyling is likely to be appropriate if he intends to purchase a conventional annuity with his entire fund.
Question 5

One of the components of monthly mortgage insurance is homeowner’s insurance. Its cost varies with factor/s as:

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    Age of the house
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    Location
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    Material used in construction
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    A and B Only
Question 6

Life insurance is intangible. You can’t see, smell, touch or taste its benefits and those benefits mainly happen when someone is died. However, life insurance does have some important benefits that should not be ignored in the financial planning process. Which of the following is out of those benefits?

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    Protection from debtors
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    Financial protection from dependents
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    Vehicle for savings
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    Interest benefit