Archive / Investment Adviser (Level 2) / Miscellaneous Aspects of Retirement Planning

nism-series-xb-combined-total-wealth-at-retirement[ INVESTMENT ADVISER (LEVEL 2) ]

What is the grand total value of Mr. Z's accumulated financial assets at age 60, combining his general debt portfolio (Rs. 1,80,37,404), general equity portfolio (Rs. 79,60,886), and accumulated retirement corpus (Rs. 48,65,914)?

[ A ]Rs. 2,60,00,000

[ B ]Rs. 2,85,50,000

[ C ]Rs. 3,08,64,204[ CORRECT ]

[ D ]Rs. 3,45,20,000

Takeaway

Summing Mr. Z's general debt portfolio, general equity portfolio, and retirement corpus gives a grand total accumulated financial wealth of Rs. 3,08,64,204 at age 60, so option C is correct.

Derivation

Total Financial Wealth = Debt Portfolio (Rs. 1,80,37,404) + Equity Portfolio (Rs. 79,60,886) + Retirement Corpus (Rs. 48,65,914) = Rs. 3,08,64,204, or approximately Rs. 3.09 Crores. This is a straightforward aggregation question that tests whether a candidate can correctly consolidate three separately-tracked pools of the case study — general debt, general equity, and the dedicated retirement corpus — into a single net worth figure without omitting or double-counting any component.

Why the others fail

A — Rs. 2,60,00,000

This is the sum of the general debt and equity portfolios only, omitting the Rs. 48,65,914 retirement corpus from the total.

B — Rs. 2,85,50,000

This reflects closing balances one year early, at age 59, rather than the full accumulation through to age 60 for all three portfolios.

D — Rs. 3,45,20,000

Includes an arbitrary residential property valuation that is not part of Mr. Z's liquid financial assets being aggregated in this case.