n NISM Certifications
XVII NISM Series XVII
Medium

When income needs are estimated in retirement using the Expense Protection Method, overlooking potential expenses may lead to overspending.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Overlooking some items of expenses likely in retirement

    Correct answer

  2. B

    Estimating a higher expense than actually incurred

  3. C

    Accurately estimating the rate of return on investments

  4. D

    Accurately estimating the income at retirement

Why this is the answer

Underestimating expenses results in insufficient funds and overspending risk.

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