FPQP Module 1.Questions and Answers

FPQP Module 1

Seven steps of the personal financial planning process - answer1. Understanding the
client's personal and financial circumstances
2. Identifying and selecting goals
3. Analyze course of action and potential course of action
4. Develope financial planning reccomendations
5. Present reccomendations
6. Implement reccomendations
7. Monitor and update

Financial planning as defined by the CFP Board of Standards Inc. - answerA
collaborative process that helps maximize a client's potential for meeting life goals
through financial advice that integrates relevant elements of the client's personal and
financial circumstances

9 areas of financial planning - answerDeveloping goals
Cash and debt management
Risk management and insurance planning
Education needs
Group benefits planning
Investment planning
Retirement savings and income planning
Tax planning
Estate planning

PTA meaning (for goals) - answerPurpose
Time frame
Amount

Advisor/Client Scope of engagement - answerIdentifying services to be provided and
excluded

Disclosing the planner's compensation

Disclosing conflicts of interest

Responsibilities of advisor and client

Establishing the duration of the engagement

Any additional info