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IFSE Institute CIFC Exam - Topic 8 Question 7 Discussion

Sarah and Kyle are a married couple. They are both 34 years of age and work as teachers. Their combined annual income is $130,000. They are able to save $800 each month. They own a home worth $340,000 with a $120,000 mortgage. Since they work for the same employer, they have the same defined benefit pension plan. Other than a tax-free savings account (TFSA) in Kyle's name with $5,000, they do not have any other assets.They are avid sailors and want to save towards a purchase of a sailboat. For the type of sailboat they want, they estimate it should cost around $65,000. They want you to recommend an investment for their monthly savings to help them achieve their goal faster.What question should you ask them next?
B) What is your investment objective for these savings?
A) How would you feel if you lost part of your money in the short-term?
C) What is your net worth?
D) How much do you make individually each year?

IFSE Institute CIFC Exam - Topic 8 Question 7 Discussion

Actual exam question for IFSE Institute's CIFC exam
Question #: 7
Topic #: 8
[All CIFC Questions]

Sarah and Kyle are a married couple. They are both 34 years of age and work as teachers. Their combined annual income is $130,000. They are able to save $800 each month. They own a home worth $340,000 with a $120,000 mortgage. Since they work for the same employer, they have the same defined benefit pension plan. Other than a tax-free savings account (TFSA) in Kyle's name with $5,000, they do not have any other assets.

They are avid sailors and want to save towards a purchase of a sailboat. For the type of sailboat they want, they estimate it should cost around $65,000. They want you to recommend an investment for their monthly savings to help them achieve their goal faster.

What question should you ask them next?

Show Suggested Answer Hide Answer
Suggested Answer: B

by Filiberto at Jul 09, 2025, 02:32 AM

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Meaghan
10 months ago
Monthly savings of $800 is solid, but they need a plan!
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Nickole
10 months ago
I think option B is the best question to ask!
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Cyndy
10 months ago
Wait, they only have $5,000 in savings? That's surprising!
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Justine
10 months ago
Why would you ask about net worth? Seems irrelevant.
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Brianne
10 months ago
They make $130,000 together, so that's good!
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Ivette
11 months ago
I practiced a similar question where we had to assess risk tolerance. I wonder if option A could help gauge their comfort level with investing.
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Barbra
11 months ago
I think option C about their net worth could be relevant, but it might not directly help with their sailboat savings. I’m torn on this one.
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Crista
11 months ago
I'm not entirely sure, but asking about their feelings on short-term losses seems a bit off for this situation. I feel like it might not address their immediate goal.
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Delpha
11 months ago
I remember we discussed the importance of understanding investment objectives in class. I think option B makes the most sense here.
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Amber
11 months ago
Whoa, this is a lot of information to take in. I better make sure I don't miss any important details. I think I'll start by asking about their investment objective and go from there.
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Hana
12 months ago
Okay, let's see. I need to figure out what their investment goal is and then recommend an appropriate investment strategy to help them reach it faster. I'll focus on understanding their risk profile first.
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Dino
12 months ago
Hmm, I'm a bit unsure about this one. There are a lot of details to consider, like their net worth and individual incomes. I'll need to carefully read through the information provided.
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Claribel
1 year ago
This question seems straightforward - I think I can handle it. The key is to understand their investment objective and risk tolerance.
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Joseph
1 year ago
Haha, I bet they're looking to sail away from their teaching jobs. C is the right choice, matey!
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Caren
1 year ago
We want to save up for a sailboat.
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Wilford
1 year ago
C) What is your investment objective for these savings?
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Carey
1 year ago
Let's also calculate our net worth to have a better understanding of our financial situation.
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Kimi
1 year ago
That's true. We should be prepared for some level of risk if we want to achieve our goal faster.
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Carey
1 year ago
We also need to think about how we would feel if we lost part of our money in the short-term.
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Lenna
1 year ago
C is the way to go. Wouldn't want to steer them wrong with their hard-earned cash, you know?
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Elfriede
1 year ago
I'm leaning towards C too. Can't give them the best advice without knowing their goals for this specific savings pot.
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Noel
1 year ago
That makes sense. Knowing your goal will help us recommend the best investment option.
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Gilbert
1 year ago
We want to save up for a sailboat.
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Mary
1 year ago
C) What is your investment objective for these savings?
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Gail
1 year ago
I'd go with C as well. Gotta know what they're aiming for - growth, safety, or a mix of both.
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Tarra
1 year ago
That makes sense. Knowing your objective will help determine the best investment option.
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Sheridan
1 year ago
We want to grow our savings to buy a sailboat.
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Geraldine
1 year ago
C) What is your investment objective for these savings?
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Kimi
1 year ago
I agree. We need to make sure we are investing in line with our goal of buying a sailboat.
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Lindy
1 year ago
Definitely C. Understanding their investment objective is key to recommending the right strategy for their sailboat savings.
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Stevie
1 year ago
We want to invest wisely to make sure we can afford the sailboat.
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Sage
1 year ago
C) What is your investment objective for these savings?
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Krissy
1 year ago
We want to grow our savings to reach our goal faster.
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Cherry
1 year ago
C) What is your investment objective for these savings?
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Pearlie
1 year ago
We want to save up for a sailboat.
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Xochitl
1 year ago
C) What is your investment objective for these savings?
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Carey
1 year ago
I think we should consider our investment objective for these savings.
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