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IFSE Institute LLQP Exam - Topic 2 Question 17 Discussion

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?
B) Loss of income.
A) Inflation.
C) Longevity.
D) Drop in standard of living.

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?

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Suggested Answer: B

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

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Leonora
9 months ago
Wait, he has $400k in RRSPs? How is he not insured?
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Magdalene
10 months ago
I agree, loss of income is a big deal for him.
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Xenia
10 months ago
He's definitely at risk of losing income if he can't sell cars.
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Roselle
10 months ago
But what about inflation? That could eat into his savings too!
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Erick
10 months ago
I think drop in standard of living is a real concern for him too.
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Brett
10 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
11 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
11 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
11 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
11 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
11 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
12 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
12 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
1 year 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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Steffanie
1 year ago
Alex better hope he doesn't get abducted by aliens and lose that income. Then he'd really be in trouble!
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Anabel
1 year ago
Hmm, I'd say the drop in standard of living is the biggest risk. Gotta keep that condo and savings intact, am I right?
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Veronika
1 year ago
I'm surprised he doesn't have any insurance. Losing that $70k income would be a real blow. Better get on that, Alex!
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Dalene
1 year ago
A) Inflation.
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Kerrie
1 year ago
I think the drop in standard of living is also a significant risk for Alex, especially if he doesn't have a backup plan in place.
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Patti
1 year ago
That's a good point, Marylin. Inflation could erode the purchasing power of his savings over time.
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Cathrine
1 year ago
Longevity is definitely the biggest risk here. With a decent nest egg, he'll want to make sure it lasts through his golden years.
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Marylin
1 year ago
But what about the risk of inflation affecting his savings and retirement plans?
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Breana
1 year ago
Alex really needs to protect his income. With no group or individual insurance, a loss of income could be devastating for his retirement plans.
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Sommer
1 year ago
D) Drop in standard of living.
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Rodolfo
1 year ago
C) Longevity.
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Glen
1 year ago
B) Loss of income.
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Dorothy
1 year ago
A) Inflation.
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Jennifer
1 year ago
I agree with Erasmo, since he doesn't have any insurance and relies solely on his job for income.
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Erasmo
1 year ago
I think Alex is most exposed to the risk of loss of income.
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