Financial Planning: Process and
Environment ACTUAL QUESTIONS AND
CORRECT ANSWERS
Financial Planning - CORRECT ANSWERS✅✅The process of identifying financial goals
and developing recommendations to address those concerns
Financial Planning Process - CORRECT ANSWERS✅✅Accomplishes both gathering
information about the client's financial goals and objectives and developing a plan for
achieving those goals and objectives
Financial Risk Tolerance - CORRECT ANSWERS✅✅1) the client's feelings on losses verse
potential gains in the market
2) usually information is gauged on the fact finder
Fact-Finder Form - CORRECT ANSWERS✅✅1) Identifying the client's values and
attitudes
2) personal needs and goals
3) clients risk tolerance
4) Gathers data
5) Gathers client's tax, retirement plans, insurance policies, business documents and any other
financial documents
6) used to paint a clear picture of the client and their needs
Financial Plan - CORRECT ANSWERS✅✅1) Solutions to client's fears and needs found in
the fact finding process
2) Alternative solutions
Communicating Recommendations - CORRECT ANSWERS✅✅1) Present financial plan to
client and provide education.
2) Obtain feedback from the client and revise recommendations as appropriate
3) Provide documentation of plan recommendations and any applicable product disclosures to
the client
, 4) Verify client acceptance of recommendations
Single-Purpose Approach - CORRECT ANSWERS✅✅1) A specialist that only sells a
single financial product
2) More views as product sales and less financial planning
3) Usually leads to a multi or comprehensive planning
Multiple-Purpose Approach - CORRECT ANSWERS✅✅1) Dealing with one or more large
portions of a planning area
2) Being able to make a financial plan dealing with one concern such as health/life insurance,
retirement plans or mutual funds
Comprehensive Approach - CORRECT ANSWERS✅✅1) consider all personal and
financial situations in the client's life (the whole picture)
2) use all tools and resources to create a complete plan for the client
3) advisor has wide range of skills and product knowledge
Consumer Price Index (CPI) - CORRECT ANSWERS✅✅1) The price consumers are
paying for various goods
2) used to gauge inflation
Financial Life Cycle - CORRECT ANSWERS✅✅1) Early Career <25-35
2) Career Development 35-50
3) Peak Accumulation 50-62
4) Preretirement (3 to sex years before retirement)
5) Retirement 62 and older
Life-Cycle Financial Planning - CORRECT ANSWERS✅✅Comprehensive financial plan
that is developed for a relatively young client that is reviewed and revised periodically as
client ages through various phases of cycle
Environment ACTUAL QUESTIONS AND
CORRECT ANSWERS
Financial Planning - CORRECT ANSWERS✅✅The process of identifying financial goals
and developing recommendations to address those concerns
Financial Planning Process - CORRECT ANSWERS✅✅Accomplishes both gathering
information about the client's financial goals and objectives and developing a plan for
achieving those goals and objectives
Financial Risk Tolerance - CORRECT ANSWERS✅✅1) the client's feelings on losses verse
potential gains in the market
2) usually information is gauged on the fact finder
Fact-Finder Form - CORRECT ANSWERS✅✅1) Identifying the client's values and
attitudes
2) personal needs and goals
3) clients risk tolerance
4) Gathers data
5) Gathers client's tax, retirement plans, insurance policies, business documents and any other
financial documents
6) used to paint a clear picture of the client and their needs
Financial Plan - CORRECT ANSWERS✅✅1) Solutions to client's fears and needs found in
the fact finding process
2) Alternative solutions
Communicating Recommendations - CORRECT ANSWERS✅✅1) Present financial plan to
client and provide education.
2) Obtain feedback from the client and revise recommendations as appropriate
3) Provide documentation of plan recommendations and any applicable product disclosures to
the client
, 4) Verify client acceptance of recommendations
Single-Purpose Approach - CORRECT ANSWERS✅✅1) A specialist that only sells a
single financial product
2) More views as product sales and less financial planning
3) Usually leads to a multi or comprehensive planning
Multiple-Purpose Approach - CORRECT ANSWERS✅✅1) Dealing with one or more large
portions of a planning area
2) Being able to make a financial plan dealing with one concern such as health/life insurance,
retirement plans or mutual funds
Comprehensive Approach - CORRECT ANSWERS✅✅1) consider all personal and
financial situations in the client's life (the whole picture)
2) use all tools and resources to create a complete plan for the client
3) advisor has wide range of skills and product knowledge
Consumer Price Index (CPI) - CORRECT ANSWERS✅✅1) The price consumers are
paying for various goods
2) used to gauge inflation
Financial Life Cycle - CORRECT ANSWERS✅✅1) Early Career <25-35
2) Career Development 35-50
3) Peak Accumulation 50-62
4) Preretirement (3 to sex years before retirement)
5) Retirement 62 and older
Life-Cycle Financial Planning - CORRECT ANSWERS✅✅Comprehensive financial plan
that is developed for a relatively young client that is reviewed and revised periodically as
client ages through various phases of cycle
