Exam (elaborations)

Financial Planning Final

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Course
Financial Planning

Institution
Financial Planning

Conflicts of interest are: a. Extremely rare in financial planning relationships b. A constant risk that planners have to guard against. c. Generally have to do with compensation arrangements and methods. d. Inevitable in the financial planning profession. - answer-c. Generally have to ...

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Uploaded on October 29, 2024
Number of pages 30
Written in 2024/2025
Type Exam (elaborations)
Contains Questions & answers

financial planning final

Institution Financial Planning
Course Financial Planning

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Financial Planning Final
Conflicts of interest are:

a. Extremely rare in financial planning relationships

b. A constant risk that planners have to guard against.

c. Generally have to do with compensation arrangements and methods.

d. Inevitable in the financial planning profession. - answer-c. Generally have to do
with compensation arrangements and methods.

Establishing the client relationship is:

a. A very straightforward step in the financial planning process.

b. A complex process within a single step.

c. The least important aspect of the financial planning process.

d. A technicality. - answer-b. A complex process within a single step.

Money scripts are:

a. Unconscious beliefs people hold about money which may or may not be true.

b. Discussions held within the planner's office

c. Talking points a planner uses to discuss recommendations with clients

d. Psychobabble - answer-a. Unconscious beliefs people hold about money which
may or may not be true.

The planner's attitudes, financial knowledge & experience:

a. Should be suppressed when dealing with clients to assure each client receives
the recommendations specific to them and not based on the planner's biases.

b. Are characteristics client's select for.
c. Influence the recommendations made by the planner.

d. A & B
e. B & C - answer-e. B & C

A systematic financial planning process is valuable to clients because

,a. The plan created as a result is more comprehensive that otherwise would be
delivered.

b. Understanding of the recommendations is enhanced.

c. Better recommendations resulting in higher returns are made.

d. The most thorough collection and analysis of information is taken into
consideration in the development of the financial plan. - answer-d. The most
thorough collection and analysis of information is taken into consideration in the
development of the financial plan.

Socioeconomic descriptors represent:

a. The current economic climate in the US

b. The social class the client belongs to, which is important to know to adequately
estimate their current financial needs.

c. A range of factual or quantitative characteristics to describe clients.

d. None of the above. - answer-c. A range of factual or quantitative characteristics
to describe clients.

Assumptions:

a. Are critical in developing recommendations you can sell.

b. Are impossible to get right anyway.

c. Are probably standard within the practice to expedite creating client centered
recommendations.

d. Vary from plan to plan because they may well vary from client to client. - answer-
d. Vary from plan to plan because they may well vary from client to client.

Talking about money is:

a. Easy for most people in today's open access society where everyone's salary is
probably on the internet somewhere.

b. Usually done in the third person to protect confidentiality.

c. Generally unnecessary and sounds like bragging.

d. Culturally unacceptable for many people. - answer-d. Culturally unacceptable for
many people.

The intake process:

, a. Is a time for establishing trust between client and planner

b. Is a standard process that para-planners can execute as it is mainly data
collection.

c. Can be painful for clients.

d. All of the above. - answer-a. Is a time for establishing trust between client and
planner

Financial planning is the process of determining

a. How much money a client can invest on a regular basis

b. How long it will take before a client can retire

c. Whether and how an individual can meet life goals through proper management
of financial resources.

d. Whether a client's life goals make any sense given their financial resources -
answer-c. Whether and how an individual can meet life goals through proper
management of financial resources.

Amortization schedules are used for loans that:

a. have variable interest rates.

b. penalize early repayment

c. have fixed interest rates.

d. require large down payments. - answer-c. have fixed interest rates.

Planners have to be cautious when developing forecasts because

a. Their methodology can be trade secrets that other planners would like to steal.

b. They rely, at least in some part, on assumptions that have to be documented and
defensible.

c. They are really just guesses dressed up on spreadsheets.

d. They rely very heavily on a combination of historical fact and returns necessary
to help the client see how to get to their goal. - answer-b. They rely, at least in
some part, on assumptions that have to be documented and defensible.

Scenario-based return forecasting

a. Is a ploy to confuse clients

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Exam (elaborations)

Financial Planning Final

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