FPQP Exam Questions with 100% Correct
Answers
Comprehensive Financial Plan
covers almost all aspects of a personal's financial situation (including risk mamagenet,
investment planning, tax, retirement, and estate planning)
Targeted Financial Plan
focus on a segment of individual's objectives. (ex - first home, elderly care, reducing tax
burden)
Goals should be...
defined or definite
Steps to setting financial goal
1. Purpose, 2. Timeframe, 3. Amount
("PTA")
Personal financial planning is continuous or noncontinuous?
Continuous
7 Steps of Financial Planning Process:
1. Understanding client's personal and financial circumstances.
2. Identifying and selecting goals.
3. Analyzing the client's current course of action and potential alternatre course(s).
4. Devleoping the financial planning recommendations.
5. Presenting the financial planning recommendations.
, 6. Implementing the financial planning recommendations.
7. Monitoring process and updating.
Two types of information:
(Step 1 - Understanding client's personal and financial circumstances)
1. Quantitative - "names and numbers"
family profile, assets and liability, cash inflows/outflaws, insurance policy info,
employee/pension plan, tax returns, retirement benefits
2. Qualititative - "lifestyle info"
goals/objectives, health status, interests/hobbies, risk-tolerance level, changes in lifestyle,
estate planning issues, money values, family relationships, planning assumptions
"SWOT" Approach
(Step 3 - analyze and evaluate)
SWOT = Strenghs, Weaknesses, Opportunities, Threats
Existing conditions are reviewed to identify strengths and weakenesses in client's total
current financial situation. Identifying existing or potential problems that could impact the
client's ability to achieve objectives.
Emergency fund should be how much?
3-6 months expenses in emergency fund.
Answers
Comprehensive Financial Plan
covers almost all aspects of a personal's financial situation (including risk mamagenet,
investment planning, tax, retirement, and estate planning)
Targeted Financial Plan
focus on a segment of individual's objectives. (ex - first home, elderly care, reducing tax
burden)
Goals should be...
defined or definite
Steps to setting financial goal
1. Purpose, 2. Timeframe, 3. Amount
("PTA")
Personal financial planning is continuous or noncontinuous?
Continuous
7 Steps of Financial Planning Process:
1. Understanding client's personal and financial circumstances.
2. Identifying and selecting goals.
3. Analyzing the client's current course of action and potential alternatre course(s).
4. Devleoping the financial planning recommendations.
5. Presenting the financial planning recommendations.
, 6. Implementing the financial planning recommendations.
7. Monitoring process and updating.
Two types of information:
(Step 1 - Understanding client's personal and financial circumstances)
1. Quantitative - "names and numbers"
family profile, assets and liability, cash inflows/outflaws, insurance policy info,
employee/pension plan, tax returns, retirement benefits
2. Qualititative - "lifestyle info"
goals/objectives, health status, interests/hobbies, risk-tolerance level, changes in lifestyle,
estate planning issues, money values, family relationships, planning assumptions
"SWOT" Approach
(Step 3 - analyze and evaluate)
SWOT = Strenghs, Weaknesses, Opportunities, Threats
Existing conditions are reviewed to identify strengths and weakenesses in client's total
current financial situation. Identifying existing or potential problems that could impact the
client's ability to achieve objectives.
Emergency fund should be how much?
3-6 months expenses in emergency fund.
