CFP Fundamentals of Financial Planning Course Exam Questions with Correct Answers

Personal Financial Planning - ANSWER-The process of formulating, implementing, and monitoring financial decisions into an integrated plan that guides an individual or a family to achieve their financial goals Financial Planning Process - ANSWER-1. Understand the clients personal and financial circumstances 2. Identifying and selecting goals 3. Analyses current course of action and potential alternatives 4. Develop plan recommendations 5. Present plan recommendations 6. Implement plan recommendations 7. Monitor progress and update as needed Understand client's personal and financial circumstance - ANSWER-- Obtain qualitative and quantitative information - Analyze information - Address incomplete information Identify and select goals - ANSWER-- Identify potential goals - Select and prioritize goals Analyze current course of action and potential alternaties - ANSWER-- Analyze current course of action - Analyze potential alternatives Develop plan recommendations - ANSWER-- Consider assumptions and estimates, as well as basis for recommendation - Consider timing and whether recommendation is independent Present plan recommendations - ANSWER-- Present recommendations Implement plan recommendations - ANSWER-- Address implementation responsibilities, as well as products and services - Select and implement actions, products, or services Monitoring progress and updating - ANSWER-- Monitoring and updating responsibilities - Monitor progress toward goals and gather current information - Update goals and recommendations