ANSWER TO FINANCIAL PLANNING QUIZ

1. IQ is the comprehensive Insurance Questionnaire developed in conjunction with the American College at Bryn Mawr, Pennsylvania to explain the individual items in an insurance illustration.

The RQ is the Replacement Questionnaire regarding the elements to be considered in replacing an insurance policy.

(They also have one for Variable Insurance (VQ), but that requires a further study of insurance overall and is addressed elsewhere in this material.)

They are lengthy, involved, time consuming and require a knowledgeable and astute agent/planner. They are, in my mind, mandatory review elements when using whole, universal or variable insurance policies.

While I am NOT stating that your planner would have already done one, I AM STATING THAT A COMPREHENSIVE PLANNER KNOWS OF THE IMPORTANCE OF BOTH, WHERE TO GET THEM, AND PUT TO THE TEST, COULD ACTUALLY DO THEM.

2. $500,000 @ 7.5% and 3.5% respectively

$542,732 @ 8% and 5% respectively.

No money is left at the end of the 20 year period.

If your planner is incapable of either or both of these issues, I submit they are not grounded in the fundamentals of planning. Note that I am referring to a "comprehensive" planner that is looking at all areas of your life. If you are just using someone for investments and nothing else, perhaps no problem. But since most everything else you do directly impacts the rest of your life,  the more knowledgeable and current your advisor is, the better you will do.

It's your call.

(Of course, if they do not have absolute competency with a financial calculator, just get up and run away.)