ATBIS Financial Advisor Quiz

1. 1. Albertans who choose market-based investments have the potential for increased long-term returns but will experience short term fluctuations in market values. Historically[1], what percent of all 1-year periods had negative returns?
[1] S&P/TSX Total Return Index over a 73-year period from 1934 to 2006.

26%

12%

4%

Answer: A) 26% (Market fluctuations are a normal part of investing)

LESSON = While market volatility is a concern for short-term investors, individuals saving for the long-term can improve their overall return. ATBIS will help the client determine what investment type is right for their unique circumstances because we understand our clients.

Explanation

Answer: A) 26% (Market fluctuations are a normal part of investing)

LESSON = While market volatility is a concern for short-term investors, individuals saving for the long-term can improve their overall return. ATBIS will help the client determine what investment type is right for their unique circumstances because we understand our clients.

2. Market based investments can make it easier to achieve retirement goals. Roughly how long will $1 Million in a balanced portfolio provide me with an annual income[1] of $75,000?
[1] Assumes a rate of return of 7%

16 years

25 years

40 years

Answer: A) 16 years at current GIC rates

LESSON = Investors saving for long-term goals should consider market-based investments as one of their product alternatives. ATBIS advisors offer unbiased product recommendations across a wide range of products choices.

Explanation

Answer: A) 16 years at current GIC rates

LESSON = Investors saving for long-term goals should consider market-based investments as one of their product alternatives. ATBIS advisors offer unbiased product recommendations across a wide range of products choices.

3. 1. Unfortunately, investors tend to buy stocks when they are high and sell when they are low. If an investor started with $10,000 and missed[1] only the 3 best month’s performance[2] during the ten years spanning 1997 to 2006, what impact would this have on their final investment balance?
[1] They had temporarily moved their investments into T-Bills [2] Based on the S&P/TSX Total Return Index

$2,688 less after 10 years

$6,722 less after 10 years

$17,642 less after 10 years

LESSON = Investors need an advisor to guide their investment decisions and prevent them from making mistakes. ATBIS advisors take pride in educating clients, defining a savings plan and, over time, making our customers better investors.

Explanation

LESSON = Investors need an advisor to guide their investment decisions and prevent them from making mistakes. ATBIS advisors take pride in educating clients, defining a savings plan and, over time, making our customers better investors.

4. 1. Starting your savings plans early can make it much easier to achieve your retirement dreams. If I start saving $3000 each year at age 25 instead of waiting until age 40, how much more will I have when I retire at 65? The extra $45,000 I contribute will result in:

An increase in savings balance of $475,918 at age 65

An increase in savings balance of $409,158 at age 65

An increase in savings balance of $184,195 at age 65

A) start at age 25 and not 45
B) I would have nearly $600,000 to fund my retirement lifestyle instead of less than $190,000 in savings
C) start at age 25 and not 35 – this is still double the amount I would have if I waited just 10 years to start

LESSON = To make it easier for Albertans to achieve their long term goals, all associates need to introduce the topic of saving for long-term goals into conversations with their clients. Every ATBIS client is assigned to an advisor who will monitor their progress and support them on their journey to achieving their dreams.

Explanation

A) start at age 25 and not 45
B) I would have nearly $600,000 to fund my retirement lifestyle instead of less than $190,000 in savings
C) start at age 25 and not 35 – this is still double the amount I would have if I waited just 10 years to start

LESSON = To make it easier for Albertans to achieve their long term goals, all associates need to introduce the topic of saving for long-term goals into conversations with their clients. Every ATBIS client is assigned to an advisor who will monitor their progress and support them on their journey to achieving their dreams.

5. 1. Clients with defined financial goals enjoy increased peace of mind and confidence that they will achieve their dreams. Approximately how much should I save[1] monthly if I’m starting 30 years before I retire and I want to have $500,000 saved for retirement?
[1] Assumes a rate of return of 7%

$200

$275

$400

LESSON = Most clients find it difficult to define their retirement goals without help. ATBIS develops a deep understanding of our client’s values and goals as a foundation for providing comprehensive investment planning advice.

Explanation

LESSON = Most clients find it difficult to define their retirement goals without help. ATBIS develops a deep understanding of our client’s values and goals as a foundation for providing comprehensive investment planning advice.

Atbis Financial Advisor Quiz