Please answer the following 7.) Which of the following items will likely increas
ID: 2813983 • Letter: P
Question
Please answer the following
7.) Which of the following items will likely increase during retirement?
Question 7 options:
a)
b)
c)
d)
8.) Which of the following statements is correct?
1. Social security is heavily relied upon by current and soon to be retired individuals.
2. The risk of a premature death during one’s WLE can be protected by life and disability insurance.
Question 8 options:
a)
b)
c)
d)
9.) Which are not considered important assumptions for long term retirement calculations?
1. Estimate of one’s work life expectancy.
2. Mortality rates and adjustments for health factors.
3. Spending needs during an individual’s retirement period.
Question 9 options:
a)
b)
c)
d)
10) Which of the following statements is/are correct?
1. Sensitivity analysis consists of rotating each variable assumption toward the undesirable side of the risk to determine the impact of a small change in that variable on not achieving the overall plan.
2. Monte Carlo allows for a range of alternative assumptions, such as changes in investment rates of return, the variability of inflation, adjustments to life expectancy, and many other market-condition scenarios.
3. If assumptions entered are accurate then monte carlo analysis can predict the future for clients.
Question 10 options:
a)
b)
c)
d)
a)
Travel expenses.b)
Increased savings expenses.c)
Increased mortgage expenses (excluding property taxes).d)
None of the above will increase during retirement.Explanation / Answer
Please answer the following 7.) Which of the following items will likely increase during retirement? Question 7 options: a) Travel expenses. The most of people treat retirement as one extended vacation so they spend more on traveling. b) Increased savings expenses. c) Increased mortgage expenses (excluding property taxes). d) Increased mortgage expenses (excluding property taxes). 8.) Which of the following statements is correct? 1. Social security is heavily relied upon by current and soon to be retired individuals. 2. The risk of a premature death during one’s WLE can be protected by life and disability insurance. Question 8 options: a) 2 Only b) 1 Only c) Both 1 and 2 Social Security is a vital source of income during retirement around 59% of retiree depends on it and current 36% of nonretirees expecting to heavily rely on Social Security d) The amount of life insurance needed in the human life value approach considers (work life expectancy / WLE) factor into account. Neither 1 or 2 9.) Which are not considered important assumptions for long term retirement calculations? 1. Estimate of one’s work life expectancy. 2. Mortality rates and adjustments for health factors. 3. Spending needs during an individual’s retirement period. Question 9 options: a) Both 2 and 3 b) 2 Only c) 3 Only d) None of the above are correct. All of the above are important assumptions used in long term retirement calculations. 10) Which of the following statements is/are correct? 1. Sensitivity analysis consists of rotating each variable assumption toward the undesirable side of the risk to determine the impact of a small change in that variable on not achieving the overall plan. 2. Monte Carlo allows for a range of alternative assumptions, such as changes in investment rates of return, the variability of inflation, adjustments to life expectancy, and many other market-condition scenarios. 3. If assumptions entered are accurate then monte carlo analysis can predict the future for clients. Question 10 options: a) 3 Only b) 2 Only c) 1, 2, and 3 Only d) Both 1 and 2 Sensitivity analysis can be used to analyze how changes can impact a project. Monte Carlo simulation furnishes the decision-maker with a range of possible outcomes and the probabilities they will occur for any choice of action.