Introduction to Financial Planning: Key Concepts,
Processes, and Ratios UPDATED ACTUAL Questions and
CORRECT Answers
, Financial planning is a collaborative
process that helps you maximize a
client's potential for meeting life goals
Personal Financial Planning
through financial advice that integrates
relevant elements of the client's
personal and financial circumstances.
A communication that, based on its intent, context, and
What is considered financial presentation, would reasonably be viewed as a recommendation
advice? that the Client take or refrain from taking a particular course of
action with regards to their financial plan, assets, strategies.
-A communication that would not be viewed as a
recommendation
-Responses to directed orders; and
What is NOT financial advice -Marketing materials, general financial education materials, or
general financial communications that a reasonable CFP®
professional would not view as Financial Advice.
-General financial education or communications
-Have I agreed to provide or have I provided Financial Planning?
-Does the Financial Advice I agreed to provide require relevant
The 3 questions that identify elements from clients circumstances in order to act in the client's
when financial planning has to best interests, taking into account the Integration Factors set
be provided forth to the right?
-Does the client have a reasonable basis to believe that i will
provide or have provided Financial Planning?
-Investment advice
-Not providing financial advice for majority of assets
Financial Planning not required
-Provides short-term cash flow portfolio illustration
-no cash flow planning n income, expenses or retirement
The number of relevant elements of the Client's personal and
financial circumstances that the Financial Advice may affect;
The portion and amount of the Client's Financial Assets that the
Financial Advice may affect;
The length of time the Client's personal and financial
Integration Factors
circumstances may be affected by the Financial Advice;
The effect on the Client's overall exposure to risk if the Client
implements the Financial Advice; and
The barriers to modifying the actions taken to implement the
Financial Advice.
Processes, and Ratios UPDATED ACTUAL Questions and
CORRECT Answers
, Financial planning is a collaborative
process that helps you maximize a
client's potential for meeting life goals
Personal Financial Planning
through financial advice that integrates
relevant elements of the client's
personal and financial circumstances.
A communication that, based on its intent, context, and
What is considered financial presentation, would reasonably be viewed as a recommendation
advice? that the Client take or refrain from taking a particular course of
action with regards to their financial plan, assets, strategies.
-A communication that would not be viewed as a
recommendation
-Responses to directed orders; and
What is NOT financial advice -Marketing materials, general financial education materials, or
general financial communications that a reasonable CFP®
professional would not view as Financial Advice.
-General financial education or communications
-Have I agreed to provide or have I provided Financial Planning?
-Does the Financial Advice I agreed to provide require relevant
The 3 questions that identify elements from clients circumstances in order to act in the client's
when financial planning has to best interests, taking into account the Integration Factors set
be provided forth to the right?
-Does the client have a reasonable basis to believe that i will
provide or have provided Financial Planning?
-Investment advice
-Not providing financial advice for majority of assets
Financial Planning not required
-Provides short-term cash flow portfolio illustration
-no cash flow planning n income, expenses or retirement
The number of relevant elements of the Client's personal and
financial circumstances that the Financial Advice may affect;
The portion and amount of the Client's Financial Assets that the
Financial Advice may affect;
The length of time the Client's personal and financial
Integration Factors
circumstances may be affected by the Financial Advice;
The effect on the Client's overall exposure to risk if the Client
implements the Financial Advice; and
The barriers to modifying the actions taken to implement the
Financial Advice.
