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1. Question1 point(s)
In retirement the risk of volatility and longevity results in “adverse sequence of returns.” The following are true about how to use home equity in a strategic way to address sequence of returns risk, except:
2. Question1 point(s)
Neuwirths’ and Sacks’ research evaluated four different “archetypical” retirees that represented the wealthiest 50% of retirees (50th-90th percentile by assets) that varied the proportion of assets that home equity represents in different geographical and socio-economic environments. The following are true about the retiree groups studied, except:
3. Question1 point(s)
Neuwirths’ and Sacks’ analysis is based on essentially the same strategy for the use of home equity that was used in the 2012 Sacks & Sacks research where a coordinated strategy (Strategy #1) recommended establishing a reverse mortgage credit line in the first of year of retirement while also withdrawing from the securities portfolio in the first year of retirement. The following are actions to take in each subsequent year, except:
4. Question1 point(s)
The following are true about the “conventional wisdom” (Strategy #2), except:
5. Question1 point(s)
The input parameters to the model included the following, except:
6. Question1 point(s)
Key findings of the research include the following about the “coordinated” strategy (#1) and the “last resort” strategy (#2), except:
7. Question1 point(s)
The “safe” withdrawal amount can be determined as a fraction of the total of home value plus portfolio value, regardless of the level of total assets and ratio of home value to portfolio value. Which of the following is not true about determining the value of the fraction to be used?
8. Question1 point(s)
The authors’ observations regarding retirement income cashflow include the following, except:
9. Question1 point(s)
Other conclusions the authors made about the cash flow produced from Strategy #1 include the following, except:
10. Question1 point(s)
Actions for advisors to understand about the Rule of 30 or 38 include the following, except: