Please I need an explanation for the rationale behind deducting $250,000 twice in arriving at the Total Insurance Need of $1.25 million for Jacques family under the Need Based Approach.
In the calculation of Total Capital Available, the $250,000 was already included to arrive at a Total Available Capital of $645,000.
The above value of $645,000 was later subtracted from the Total Financial Need of $2,1492,478 to arrive at Life Insurance Need of $1,492,478.
So, subtracting additional $250,000 Jacque current insurance from this figure to arrive at a figure of $1.25m for Total Insurance Need is more or less a double counting.
Maybe I dont seem to be getting something right, please do provide some form of explanation or the rationale behind the double deduction.
“Reading 12: In the paragraph immediately below Exhibit 11 (p. 438 of print), delete the phrase “Because Jacques already has €250,000 of life insurance … according to this method” The original statement appears to double-count the life insurance.”
If i remove current life insurance of 100k from Capital available, required life insurance would be 431k. Thus, additional life requirement stands 431k-100k = 331k.
I am really struggling with time to complete CFA curriculum reading and I desperately need some advice/assistance.
Are you guys studying everything from the curriculum or skipping things or following an alternative prep provider?
I tried following Schweser for level 3, but is conveniently ignores concepts and quality of notes is quite bad in my opinion.
For this reading itself,the curriculum has a full fledged example of Jacques and marion…plus concepts like need based analysis etc…
Can you please please suggest, how do you guys read and summarise such heavily worded and long case studies? Is there any alternative way of handling this which I am missing?
Would highly appreciate your advice. I am a retaker because I couldn’t complete reading the syllabus last time. Really afraid I am on the same road again.
Thanks for your reply mskhan. I am following IFT videos, but the only problem is their notes(PDF) are too concise. Hence, I am trying to follow the curriculum for notes. But, curriculum is kind of never ending… can I get some guidance on how to read the curriculum faster?
Well that is the purpose of notes, crisp and concise. The notes will give you idea what is required in the LOS. Then corresponding videos, BB, White Text examples and EOCs will cover the rest from the curriculum.
I get that, but there is so much in the curriculum white text example that is not covered by IFT. Can we safely, ignore such excess justifications and explanations and simply elaborate on IFT points? Eg: in section that explains what are the different types of insurance that are recommended for Jacques and Morning, Curriculum has so much extra which IFT doesn’t cover.
I suggest first have a complete faith on whichever study provider you are choosing then cover whatever it is suggesting. Review any topic twice and move on. Because otherwise you will never become confident and can never be able to fully concentrate on most testable topics. you can always do extra if the time permits in the end. There is no key to Morning part but to practice past papers multiple times. I had the habit of solving relevant past paper questions at the time of writing my notes. That is while making notes i used to solve BB, white text, EOCs and relevant past paper questions for the last 5 years. In the last month i revised many times my notes which also had BB, EOC, White text and past questions. While doing same questions multiple times, you will start seeing some pattern which is the real confidence booster. You may leave last two years actual exams for time bound practice in the end. My point is keep your focus especially in the start and gain confidence through lot of practice as i explained above. I think IFT has done a good job in identifying most testable topics. Dont forget to watch his exam solution videos.
Daverm, i have given away all my notes to clear up shelf space. In any case i strongly suggest you to make your own notes from curriculum, IFT notes and slides as well as explanation of relevant topics from past papers. I know its a time consuming task but In this way you can retain more and it will be easier to revise afterwards plus you may find level 3 exam easier than level 2. because you will be over prepared. Again past papers solution explanation can be great source for your notes.