My Notes

Question 1

Factors

Doa hit a c lump called IE tax

Answer 1

DOA - death, other assets

HIT- health, income needs, TFC

A - ATR and CFL

LUMP- lump sum needs

Called- charges, cost and complex

Oeic - outlook on inflation and investment Experience

T - TAX 🙄

Question 2

Nomination forms

Answer 2

Nomination forms are expression of wish and not legally binding.

The trustees must investigate and they have discretion to pay the death benefit to someone else

Question 3

Tolerance for loss

Answer 3

Amount of risk willing to take

Previous investment experience

and understanding of risk

Question 4

Capacity for loss TOAD

Answer 4

TOAD

Time

Other assets

Amount of risk without reduction in standard of living being Affected

Amount of DEAD loss

Question 5

Safe withdrawal rate

Answer 5

Percentage of the initial investment that can be withdrawn each year over a period of 30 years taking account of inflation that does not lead to complete portfolio failure

Failure being defined as 95% probability or more of total depletion of the fund.

Question 6

Cash flow

Answer 6

Future returns are lower
More income is required 
Sudden loss of asset such as stockmarket crash
Large unplanned capital Requirement 
Inflation is greater
Live longer than expected

Question 7

Drawdown risks fish Liam

Answer 7

F
I - investment risk
S- sequencing risk

L- longevity risk
I - inflation risk
A - annuity risk
M - mortality risk

Question 8

Dependants classification

Answer 8

Spouse
Child under 23 or dependent due to physical or mental health conditions
Anyone else financially dependent

Question 9

Successor classification

Answer 9

Nominated by a dependent, nominee or successor

Can be nominated by scheme administrator if not nominated by dep or nominee
Successor only exists within flexi access

Question 10

Nominee classification

Answer 10

Not a dependant

Can be nominated by the member

Or scheme administrator if no deps or no nomination