Case Study 2 Questions

Question 1

Outline to them key issues that may result in them failing to meet financial goals

Answer 1

Question 2

Identify key areas of weakness in their current protection arrangements

Answer 2

Question 3

State the additional info an adviser would require to advise them on how to meet their objectives

Answer 3

Question 4

State the process an adviser should follow when advising their financial situation

Answer 4

Question 5

Outline the factors an adviser should take into account when assessing kabirs capacity for loss with regards to his objective to rebuild his pension fund

Answer 5

Question 6

Outline how kabirs capacity for loss may have changed as a result of his divorce

Answer 6

Question 7

Explain how a lifetime cash flow model could be used to help kabir ensure he can meet his objectives

Answer 7

Question 8

Outline the key info an adviser should take into account when preparing a cash flow model to assess their retirement provision

Answer 8

Question 9

Explain the limitations of cash flow modelling and why they should not rely on this as the sole method of planning future income needs

Answer 9

Question 10

Identity the key issues that an adviser should discuss with them at their next annual review

Answer 10

Question 11

Outline the key issues that an adviser should discuss with them at their annual review regarding their objective to increase kabirs pension provision

Answer 11

Question 12

Outline the key issues an adviser should discuss with them at an annual review regarding their objective to protect maintenance payments

Answer 12

Question 13

Explain to kabir and Emma the advantages and disadvantages in prioritising pension contributions over saving towards a property deposit

Answer 13

Question 14

State the benefits and drawbacks for kabir of entering into a salary sacrifice pension arrangement

Answer 14

Question 15

Outline the key factors that their adviser should take into consideration before making any changes to the underlying investments in their pensions and isa’s

Answer 15

Question 16

Describe the process their adviser would follow when assessing the adequacy of their pension to provide their required retirement income

Answer 16

Question 17

Explain to them how their eligibility to state pensions would work and why they should obtain a state pension forecast

Answer 17

Question 18

Outline the factors that their adviser would need to consider when assessing the suitability of their current cash and investment holdings for long term needs

Answer 18

Question 19

Outline the factors kabir would need to consider when determining whether to retain his share portfolio

Answer 19

Question 20

Outline to kabir how his cgt liability will be calculated should he opt to dispose of his shares

Answer 20

Question 21

Outline the factors an adviser would consider when assessing how best to meet his need to protect the maintenance payments

Answer 21

Question 22

Outline the process that kabir and Emma’s adviser would follow when assessing their protection needs

Answer 22

Question 23

Identify the factors that an adviser would consider when advising them on their objective to ensure that the children will receive kabirs estate on death

Answer 23

Question 24

Explain in detail to kabir the implications of not updating his will and nominations following his divorce

Answer 24

Question 25

Recommend and justify a range of actions that they could take to improve their current retirement savings provision

Answer 25

Question 26

Explain to them why it’s important to make regular savings into their pensions and isas

Answer 26

Question 27

Explain the workings of a vct and the benefits to kabir of investing in a vct as an alternative to his smaller share portfolio

Answer 27

Question 28

Recommend and justify an appropriate insurance policy to ensure the maintenance payments to Hannah are protected in the event of kabirs death

Answer 28

Question 29

Explain the actions that kabir should take in respect of his existing will and nominations

Answer 29

Question 30

Outline to kabir why he should review his death benefit nominations and his will on a regular basis

Answer 30

Question 31

Outline to kabir the process that will be used to wind up his estate on death and his assets will be treated for iht purposes

Answer 31

Question 32

Outline to kabir why he should nominate the children as beneficiaries on his expression of wishes

Answer 32

Question 33

Outline the key issues that an adviser should discuss with them at an annual review regarding their objective to ensure the children receive kabirs estate on death

Answer 33

Question 34

Recommend and justify an appropriate insurance policy to provide cover in the event of kabir and/or Emma’s inability work due to ill health

Answer 34

Question 35

State the factors that their adviser would take into account when advising them on a suitable strategy to fund the deposit on their property

Answer 35

Question 36

Outline the main features of joint tenancy and tenancy in common as a property ownership model and explain why tenants in common model may be appropriate to meet kabirs estate planning needs

Answer 36