A)   SMarT programs.

B)   Social Security.

C)   Pension plans.

Q2. Which of the following is least likely to jeopardize an individual’s desired lifestyle and/or bequest?

A)   Liquidity risk.

B)   Savings risk.

C)   Longevity risk.

Q3. The three primary risks that could jeopardize the desired lifestyle and/or bequest of an individual include which of the following?

A)   Financial market risk, longevity risk, and savings risk.

B)   Longevity risk, savings risk, and inflation risk.

C)   Savings risk, financial market risk, maturity risk.

Q4. Which of the following is NOT an example of a cause of savings risk?

A)   The financial markets drop significantly wiping out a significant portion of a person’s wealth.

B)   A person expects to average a 12% rate of return in their 401k retirement account.

C)   A person fails to determine how much they need to save given an assumed rate of return and time frame.

答案和详解如下：

Q1. Which of the following is least likely a solution to longevity risk?

A)   SMarT programs.

B)   Social Security.

C)   Pension plans.

Correct answer is A)

SMarT (Save More Tomorrow) programs are considered solutions to savings risk (not longevity risk) because in the SMarT programs individuals pledge to save a portion of future raises.

Q2. Which of the following is least likely to jeopardize an individual’s desired lifestyle and/or bequest?

A)   Liquidity risk.

B)   Savings risk.

C)   Longevity risk.

Correct answer is A)

The three primary risks that could jeopardize an individual’s desired lifestyle and/or bequest are: (1) financial market risk, (2) longevity risk, and (3) savings risk. Liquidity risk is not a factor in determining an individual’s desired lifestyle or bequest.

Q3. The three primary risks that could jeopardize the desired lifestyle and/or bequest of an individual include which of the following?

A)   Financial market risk, longevity risk, and savings risk.

B)   Longevity risk, savings risk, and inflation risk.

C)   Savings risk, financial market risk, maturity risk.

Correct answer is A)

The three primary risks that could jeopardize an individual’s retirement plans are: financial market risk, longevity risk, and savings risk. Financial market risk refers to the effects of volatility in the financial markets that could result in significant drops in portfolio values. Longevity risk refers to the chance of out-living one’s financial assets. Savings risk refers to the chance of an individual spending more than they should so that they save less than needed during the accumulation stage. This is usually the result of poor long-term planning. Inflation risk is included in savings risk.

Q4. Which of the following is NOT an example of a cause of savings risk?

A)   The financial markets drop significantly wiping out a significant portion of a person’s wealth.

B)   A person expects to average a 12% rate of return in their 401k retirement account.

C)   A person fails to determine how much they need to save given an assumed rate of return and time frame.

Correct answer is A)

A drop in a person’s financial wealth due to a drop in the equity markets is an example of financial market risk and not savings risk. Savings risk is when a person doesn’t save enough for retirement and spends more than they should during the accumulation phase. Savings risk usually arises from a lack of long-term planning and is the result of consuming too much current income rather than saving it. Relying too much on growth in a 401k to make up for a lack of saving is an example of savings risk.

Thank you!