IFSE Institute LLQP Exam - Topic 2 Question 17 Discussion

Actual exam question for IFSE Institute's LLQP exam

Question #: 17
Topic #: 2

[All LLQP Questions]

Alex, aged 35, has worked for many years as a salesman in a small used car dealership. He earns $70,000 a year. He has no group insurance at work and no individual insurance. Single and without children, his priority is to save enough money to retire at age 60. He makes regular contributions to his RRSPs, in which he has accumulated $400,000. He owns a condo valued at $250,000 on which he has an uninsured mortgage of $150,000. What financial risk is Alex most exposed to?

AInflation.

BLoss of income.

CLongevity.

DDrop in standard of living.

Show Suggested Answer

Suggested Answer: B

by Tambra at Jul 04, 2025, 05:27 PM

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Leonora

3 months ago

Wait, he has $400k in RRSPs? How is he not insured?

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Magdalene

3 months ago

I agree, loss of income is a big deal for him.

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Xenia

3 months ago

He's definitely at risk of losing income if he can't sell cars.

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Roselle

4 months ago

But what about inflation? That could eat into his savings too!

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Erick

4 months ago

I think drop in standard of living is a real concern for him too.

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Brett

4 months ago

I lean towards the drop in standard of living because without insurance, any unexpected expenses could really hurt his financial situation.

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Paris

4 months ago

I'm not entirely sure, but I wonder if inflation could impact his savings over time, especially since he wants to retire early.

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Youlanda

5 months ago

I remember a practice question about retirement risks, and I feel like longevity could be a concern for him too, especially if he lives longer than expected.

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Kathryn

5 months ago

I think Alex might be most exposed to loss of income since he has no insurance and relies solely on his salary.

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Dino

5 months ago

I think the answer is loss of income. Alex is relying on his salary to fund his retirement, and without any insurance, he'd be exposed if he couldn't work. That's the biggest financial risk he faces.

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Josefa

5 months ago

I'm a bit unsure here. There are a few potential risks mentioned, like inflation, longevity, and drop in standard of living. I'll need to weigh the likelihood and potential impact of each one.

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Junita

5 months ago

Okay, I've got this. Alex's main risk is losing his income, since he has no group or individual insurance. That would be devastating without any backup coverage.

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Alise

5 months ago

Hmm, let me think this through. Alex has a good income and some savings, but no insurance coverage. I'll need to carefully consider the different risks he might face.

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Meghan

6 months ago

This seems like a straightforward question about financial risk. I'll focus on identifying the key risks Alex is exposed to based on the information provided.

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