July Challenger Financial Standard Technical Services Forum

Synopsis: Looking at why assessing strategies can be challenging in particular during retirement. What measures of success can be used while comparing strategies. How these measures of success can be modelled to then employ techniques to better achieve a client's retirement objectives. These techniques will be analysed through the lens of a case study.

Synopsis: planning for loss of capacity is an important element of estate planning for elderly clients. To protect an elderly client's interests, advisers need to exercise vigilance when dealing with an enduring power of attorney. Further, Claudine will explore divorce or separation and estate plan considerations if a separation occurs.

Estate Planning
Claudine Siou, IOOF
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1. Advanced care plans are only relied upon in which of the following circumstances?
    At such time as a person's family decides  is convenient  
    At any time that a person's partner determines to enact a care plan
    When a person loses the ability to make/express their own decisions
    At a time determined by a person's solicitor
2. Which of the following is cited as a red flag that advisers should look for in regard to the scope of a power of attorney?
    Where an attorney wants to make a binding nomination
    Where an attorney wants to gift money
    Where an attorney might enter into a conflict transaction
    All of the above
3. Most aspects of estate planning are governed by State and Territory laws, except which of the following?
    Power of Attorney rules
    Superannuation beneficiary nominations
    Rules around Wills
    None of the above
4. Advanced care planning aims to reflect which of the following principles?
    Dignity
    Autonomy
    Self-determination
    All of the above
5. According to the commentary, when does an enduring power of attorney cease?
    Whenever the appointed attorney determines
    On a date specified in the power of attorney document
    On the death of the principal
    It depends on which State/Territory the principal resides
6. The effect of a divorce on a Will depends on State/Territory laws.
    TRUE
    FALSE 
7. In cases of intestacy, a married but separated spouse cannot receive all/part of the estate.
    TRUE
    FALSE

Submit your answers below

Techniques for assessing retirement income strategies
Melanie Dunn, Accurium
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1. Comparison of retirement strategies requires understanding:
   Retirement lifestyle costs
   What a successful retirement looks like
   Risks to achieving a successful retirement
   All of the above
2. In terms of meeting retirement goals, success measures should focus on:
   The certainty of meeting goals
   The likelihood of meeting goals
   The fact that most goals will not be met
   All of the above
3. It is common for traditional risk modelling models to:
   Rely too much on complex illustrations
   Overcompensate for variation
   Use fixed assumptions
   Use fluid assumptions
4. Stochastic modelling:
   Precludes the use of distribution data
   Allows for real-world variations in returns
   Precludes the use of median outcomes
   Works best for groups rather than individuals
5. According to statistics cited by the presenter, if a 67-year-old male-female couple want 90% confidence that their money will last for life, they need to plan for their assets to last until age:
   100
   93
   98
   89
6. In terms of modelling market and inflation risk:
   Historic returns work well as an estimate of future occurrences
   Real returns and average returns are essentially the same
   Average fixed assumptions can obscure costs
   Average fixed assumptions crystallise costs
7. According to the presenter, competing objectives are part of retirement conversations and trade-offs.
   TRUE
   FALSE
8. Deterministic modelling gives a clear picture around how income is being funded.
   TRUE
   FALSE