## Retirement Planning

Posted by Prashant Shah on October 30, 2014

Dear all,

It seems like retirement planning exams is getting tougher day by day.

Hence, request those who have appeared in the exam to share their experience and questions here in comments.

It will certainly help many who are stuck.

Regards,

Prashant V Shah.

## rachna said

dear prashant

I would sincerely thank you for this blog. it helped in clearing so many doubts and i could clear the three modules without any coaching. retirement planning is the only module remaining for me too. i really look forward to get some latest questions on this blog about retirement planning module.

Is there any other online resource which i can tap into? i have the latest Retirement planning book from mandarfinance.

it would be great if you could respond to this query.

## Prashant Shah said

Dear rachna.

For Rpeb focus on tvm. Since u have cleared rest of the modules, u are already well prepared. Solve the sample paper given by fpsb and go ahead.

Regards.

Prashant.

## bhawnapearl said

hi rachna..as you’ve stated you have got through the other three modules..could you tell me the pattern of numericals you came across in risk analysis and insurance planning..could you share in any material if you have it..thanks.

## rahulmj08r said

Hello Guys this is Rahul and i’m new to this forum. i would like to share my Rpeb exam experience and knowledge.First thing this is my first exam, concepts in this module required in depth analysis especially TVM, and From the exam perspective there is no standardized books for practicing problems but i would recommend you to refer FPA books and try to solve every questions to make sure whether your are perfect in solving TVM related sums.Second thing do not focus on memorizing concepts, but exam demands much more of the student, requiring not only knowledge of the material, but also the ability to correctly synthesize and apply it to actual Retirement planning situations.

Third thing read book thoroughly for theoretical questions and last thing exam was damn tough don’t know about other modules but i felt it was toughest and unable to grasp some methods to solve problems.

All the best for RPEB exams

Regards

Rahul MJ

## Cfp said

Hi,Would you please post questions which you remembered from Retirement module, as next week i am going to right the exam, it will help

## Prakash said

Hello Prashant, I cleared the RPEB exam couple of days ago..

Thought of sharing some of the questions that i can remember

1, Mr. A purchased a flat worth Rs. 50 lakh in January 2007 by availing a housing loan of Rs. 35 lakh for tenure 15 years at the rate of 8.5% p.a. The value of his flat as in January 2013 has appreciated to Rs. 90 lakh. He also spent Rs 2 Lakhs for registration and 1.5 lakshs for interior decoration..What approximate value of home equity can he consider in his flat towards his unencumbered interest after also setting aside 15% of the appreciation value towards taxes and other costs to be discharged on selling the unit?

2,An NPS account can be closed before attaining normal retirement age under all of the following circumstances, except _______.

3,A person at age 57 has accumulated Rs. 67 lakh towards retirement funds and opts for premature retirement. He purchases an immediate annuity for a total term of 20 years, a fixed monthly amount for the initial period of 10 years and a provision to double the monthly amount in the second 10-year period. If the minimum yield guaranteed in the annuity is 8% p.a., what monthly amount he is expected to receive in the subsequent 10-year period?

4,Under the NPS Tier I, the minimum contribution per year is _____ and minimum amount per contribution is _______.

5,Mr A’s annual salary is 9 lacs. 30% of his salary goes towards mandory saving and another 30% towards his loans and taxes.He switches job and gets 20% increase in his salary. With other things remaining same except his household expense increases by 5% towards his child education. His finanical planner advises him to save 6 months house hold expense.How many months would it take to do that.

6,An incorrect estimation of lower inflation post-retirement would not result in _____.

7, An annuity product is designed in such a way that it gives first cash flow at 5% of the corpus at the end of first year and thereafter every year in the form of growing annuity at the rate of 6%. If the cash flows are guaranteed for 20 years, what rate of return is obtained on the corpus invested?

8,A self employed person died in an accident. His wife, who is working in a bank, is nominee of his PPF account. She also has a PPF account in her name. She requested your opinion on the funds standing in her husband’s PPF account. You suggest that _____.

9,The percentage of loan eligible and the tenure of repayment period that can be availed from a PPF account is _____.

## Prashant Shah said

High five…

Thanks for the effort.

Regards

Prashant

## rahul2008mohan said

Hi Thanks for the above questions can any body reply with answers so that i can correct im appearing rpeb in 2nd week of this month.It would be a great help

## rahul2008mohan said

Hi Any one come up with solutions who cleared already So that i can correct solutions ?Looking for an positive reply?

## rahul2008mohan said

Hi

Thanks for your reply some how i couldn’t clear RPEB Exam I felt little difficultI have seen few questions from the above mentioned list ,Can some body who already cleared come up solutions That Would be a great help.Looking from a reply those who already cleared.Sugget me is there any other imp questions related to RPEB and as well as the concepts to prepare.

Q1 Scholarship of Rs 10lacs per year on perpetual basis 3 yrs ago. ROI is 7.5%. Now he wants to increase by Rs5lacs p.a at ROI declined by 1%. What entire amount he need?

Q2 Person has accumulated Rs 50 lacs by investing in Equity and Debt in ratio of 70:30 at age 50. Now he makes fresh investment of Rs 3lacs p.a for 5 yrs and Rs 5lacs p.a for further 5 yrs. He made fresh investment in 50:50 and rebalance his portfolio at age 55 in original proportion. What is accumulated corpus at age 60? (Equity 11% and debt 8%)

A)1.81 crore, B)1.89 crore, C)1.87 crore, D) 1.83 crore.

Q3 Account opened on 31/3/2013 deposit each subsequent amount on the last day of the year amount Rs 1lacs p.a. What will be the accumulated amount on Maturity? (8.8%)

Ans End mode N=16, I=8.8 , pmt= -1lac , Fv=? 3244700. py and cy =1

ans. 3244700

Q4 Loan is taken on 14.5% p.a. Processing fee 1.5% of interest is on Monthly bases on Reducing volume. Calculate effective rate of return?

Ans. N=12, I=14.5% Effective rate *15.50*

Q5 The Gratuity not covered, Mr x has received the lump sum of Rs 12.5 lakh, has last drawn salary of Rs 1.05 lakh and some hiked from 90k seven months. The company paid 40% D.A and 50% commission on basic salary. What is taxable gratuity amount? A)310000, B)292500, C)255000, D)472500 or 367500

Q6 30 yrs old earn Rs 8 lacs p.a and He started planning for retirement. He earmarks 10% of his annual earnings, which he excepts would rise every by 10% to retirement fund would yield 8.5% p.a return are expected to be 12% p.a and money from such portfolio is remade and invested in retirement fund every 10yrs. What corpus is expected to retire with at age 60?

A) 3.88 crore, B) 1.85 crore, C) 4.22 Crore, D) 4.53 Crore..

Q Q7 Your client started investing for his retirement goal late at age of 45 yrs. On reaching 55yrs today he has accumulated Rs 35lakh which he find insufficient on reaching age 60, if he draw 5 lakh p.a. Inflation-adjusted from his corpus for 30yrs post-retirement if the corpus is invested at 7.5% p.a with inflation exception of 5.5% p.a. If prior to retirement the growth rate is 9.5% is considered for investment already accumulated fund and fresh investment of 3.5 lakh, you estimated the period of delayed retirement beyond 60yrs to be? A) 3 yrs, B) 4yrs, C) 4yrs.4 months D) 6yrs.6 months.

Q8 Q8 This is come under PERFA and IRDA license of insurance company?

A) Reliance life insurance, B) Birla sun life insurance, C) Star dus dia life insurance, D) Mahindra life insurance.

9)..an industrialist started a project on 1st nov 2009 with own capital of rs 1crore.He arranged a project of rs 1.5crore by a back on 1st july 2009 at a rate of 12%p.a. the terms of finance were quarterly invested.only payments up to six quarter and the repayment of premium in three equal installments from the end of seven quarter along with interest on the loan outstanding.he infuced fresh own funds towards working capital of rs 20 lakh on 7th december 2009 and rs 30 lakh on 4th november 2010.the project completed with a profit of rs 4.5crore on 6th september 2012.find the return generated by the project…

a)22.59%p.a.

b)30.16%p.a.

c)30.57%p.a.

d)32.37%p.a.

## Prashant Shah said

Hi rahul. My heavy academic schedule is about to get over. Will solve questions as early as possible.

Regards.

## bhawnapearl said

hi please provide solutions to the above questions..thanks

## Harsh said

Hi, there, would you please give the solution for the same. or if u can help me in solving question no 7 would be highly appreciated.Thanks, harsh (email id – pat.harsh@gmail.com)

## Rahul said

Dear Prasanth Sir,

Could you please help me by solving the above questions.Its really appreciable if some one could take the initiative of solving who alread cleared RPEB and share their experience

## rahul2008mohan said

Hi,

ill be waiting for your reply sir if any one come up with solutions that would be greatful related to above questions

## udaycfp said

Dear sir

Pls help me .

i want you advice for my RPEB exam what i read & solving question

## Prashant Shah said

Hi,

First go through books u have for this subject. Sharpen concepts of time value with complex application. You may find many questions on this site.

Regards

Prashant.

## udaycfp said

Dear sir

Thanking you

## Vansh said

Can any body plz help me i am having exam on 15 i want solutions of these questions

## Vansh said

1 . An annuity product AA at rs 8640 p.a per lakh rs of purchase value offer annuity for life with a provision of 50 % of annuity payable to spouse during his/her life time on death of the annuitant , another annuity BB at rs. 7010 per annum per lakh rs of purchase value offer annuity for life with a provision of 100% of annuity payable to spouse during his/her lifetime on death of annuitant along with return of purchase price on the death of last survivor. Today your client and his spouse have respectively 20 years and 25 years more expected life. You estimate the returns provided in AA and BB to arrive at right selection for your client as annuity.

Ans

A. AA better 41 basis points per annum better return than BB

B. BB offer 15 bps p.a better return than AA

C. BB offer 84 bps p.a better return than BB

D. AA its excess cash flow invested at conservative 8 % p.a gives higher value than the purchase price after matching cash flow of BB

## Vansh said

Option b is correct or d is correct?

## Prashant Shah said

Answer to question is B. It is already posted on the site.

## Vansh said

Thanks sir

## Pawan Gupta said

Dear sir,

Please provide me the solution for these above questions as I appeared last time for RBEB but couldn’t clear it. Questions were a bit tough. As I see these question, these questions were there in my paper too. I request you to please provide the solutions for the above questions.

Thank you.

## Vansh said

In gratuity not covered question it is written like DA 20 % of basic salary will it be included in salary or not .nothing mention whether it is forming part or not

## Vansh said

Plz rply as soon as possible

## Vansh said

Plz reply abt DA in not covered ??

## Prashant Shah said

Dear Vansh.

I exam the question will be quite clear and there will be no ambiguity. So don’t worry.

Prashant.

## Vansh said

Thanks sir

## Vansh said

In gratuity not covered commission will be included or not included in salary?

## Prashant Shah said

No

## Vansh said

Sorry in covered commisson will be included or not?

## Vansh said

Sir but someone is sayng that commission will also be included in coverd under gratuity case due to supreme court ruling ? Do you have any idea about this i am totally confused whether i have to consider commission or not in employee coverred in act?

## Prashant Shah said

For covered it will be considered.

## Vansh said

Sir but someone is sayng that commission will be included in covered act due to supreme court ruling ? i am totally confused about to include the comission or not in salary in employye covered under the act?

## Vansh said

Okie thanku so much sir . It means i have to add comission in salary in both cases covered and not covered?

## Vansh said

Hlo sir thanks for helping me ihave cleared rpeb with b grade now i am left with afp can you please tell me from where i can start for afp exam?

## Rachna Monga Koppikar said

Vansh can you please share the kind of questions you got in the exams?

## Prashant Shah said

Hello,

How many modules are yet to be cleared?

Prashant.

## Rachna Monga Koppikar said

hi prashant my retirement module and advanced module are remaining.