IFSE Institute CIFC Exam - Topic 8 Question 7 Discussion

Actual exam question for IFSE Institute's CIFC exam

Question #: 7
Topic #: 8

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?

AHow would you feel if you lost part of your money in the short-term?

BWhat is your investment objective for these savings?

CWhat is your net worth?

DHow much do you make individually each year?

Show Suggested Answer

Suggested Answer: B

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

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Meaghan

5 months ago

Monthly savings of $800 is solid, but they need a plan!

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Nickole

5 months ago

I think option B is the best question to ask!

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Cyndy

6 months ago

Wait, they only have $5,000 in savings? That's surprising!

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Justine

6 months ago

Why would you ask about net worth? Seems irrelevant.

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Brianne

6 months ago

They make $130,000 together, so that's good!

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Ivette

6 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

6 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

7 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

7 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

7 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

7 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

7 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

7 months 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

10 months 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

8 months ago

We want to save up for a sailboat.

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Wilford

9 months ago

C) What is your investment objective for these savings?

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Carey

10 months ago

Let's also calculate our net worth to have a better understanding of our financial situation.

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Kimi

10 months 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

10 months 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

10 months 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

10 months 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

9 months ago

That makes sense. Knowing your goal will help us recommend the best investment option.

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Gilbert

9 months ago

We want to save up for a sailboat.

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Mary

9 months ago

C) What is your investment objective for these savings?

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Gail

10 months 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

9 months ago

That makes sense. Knowing your objective will help determine the best investment option.

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Sheridan

9 months ago

We want to grow our savings to buy a sailboat.

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Geraldine

9 months ago

C) What is your investment objective for these savings?

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Kimi

10 months 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

11 months ago

Definitely C. Understanding their investment objective is key to recommending the right strategy for their sailboat savings.

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Stevie

9 months ago

We want to invest wisely to make sure we can afford the sailboat.

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Sage

10 months ago

C) What is your investment objective for these savings?

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Krissy

10 months ago

We want to grow our savings to reach our goal faster.

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Cherry

10 months ago

C) What is your investment objective for these savings?

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Pearlie

10 months ago

We want to save up for a sailboat.

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Xochitl

10 months ago

C) What is your investment objective for these savings?

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Carey

11 months ago

I think we should consider our investment objective for these savings.

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