FP1 - Chapter 1 Questions With 100% Correct Answers.

What is the role of the advisor? - It is to take the client-driven approach, and building-relationship approach. Focus on the goal, identify barriers, provide product and service to meet the client needs. What is Providing financial advice? - It is the method you use to assess client's situation. Define their goals , prioritize them and develop strategies to meet them. What is the "FULL SERVICE OFFER"? - It is the level of service that takes in consideration the client's needs, as you develop integrated strategies to achieve their goals. What is the 5 step process to provide Full Service Advice? - 1) Assess the client's financial situation 2) Define and prioritize their goals 3) Adjust the strategy based on their financial capacity 4) Identify product and service options 5) Conduct a periodic review What is the 6 step Financial planning process ? - 1) Establish a client/advisor relationship 2) Collect data and information 3) Analyze data and information 4) Recommend Strategies to meet goals 5) Implement recommendation 6)Conduct a periodic review In the first step of the client/advisor relationship, What are your responsibilities towards the client ? - 1) Integrity 2) Professionalism 3) Confidentiality4) Objectivity 5)Diligence In the collection of data and information, what are the two things you will use them for? - A. Identify and priorize the goals and objectives (Hint the next step) B. Assess the present financial situation to recommend a solution What is the two type of data you are collecting from the client? - a. Qualitative data b. Quantitative data What is qualitative data? - Any information that helps you assess client's understanding of economic concepts and their risk tolerance.