FP 99 Foundations of Financial Planning
UPDATED ACTUAL Questions and CORRECT
Answers
Which of the following would a financial professional
do in the "Implement the Plan" step of the
marketing/planning process?
Address any questions
and resistance. - Address any questions and resistance.
- Identify obstacles to goals.
- Determine the client's attitudes toward risk.
- Evaluate solutions and alternatives.
Which of the following statements concerning life-
cycle planning is correct?
A client in the peak - The career development phase is between ages 25
accumulation phase and 35 for most people.
generally has the greatest - A client in the peak accumulation phase generally
opportunity for has the greatest opportunity for accumulating wealth.
accumulating wealth. - Clients in the early career phase are most
concerned with estate planning goals.
- The preretirement phase typically lasts 10 to 15 years
before retirement occurs.
Trends that have created opportunities for financial
professionals engaged in financial planning include
which of the following?
I only
I. the population in the United States is aging rapidly.
II. continuing stability of financial conditions in the
economy
, Reasons people begin financial planning include
which of the following?
Both I and II
I. saving for a comfortable retirement
II. dependent support after my death
All of the following professionals using the
marketing/planning process would be considered to
be practicing single-purpose financial planning
EXCEPT
- a banker who opens a trust account for the benefit
an account who prepares
of a customer's handicapped child
a client's income tax return
- a life insurance agent who sells key person life
insurance to the owner of a small business
- an account who prepares a client's income tax return
- an investment advisor representative (IAR) who
advised a customer to buy shares of common stock of
a particular company
All of the following are common obstacles that
prevent or hinder clients from developing effective
financial plans EXCEPT
the lack of available
insurance and tax-favored - the human tendency to procrastinate
vehicles clients can use to - the lack of available insurance and tax-favored
meet financial planning vehicles clients can use to meet financial planning
goals goals
- the tendency for individuals and families to live
beyond their financial means
- the lack of financial knowledge among consumers
All of the following are subjects most often included
in a comprehensive financial plan EXCEPT
divorce planning - risk management and insurance planning
- divorce planning
- investment planning
- estate planning
, The client's present financial situation should include a
review of all of the following documents EXCEPT
Homeowner's insurance
- Net worth statement
declaration page
- Cash-flow statement
- Most recent tax return
- Homeowner's insurance declaration page
The wealth foundation level of the Financial Planning
Pyramid includes all of these areas EXCEPT
Long-term Care Insurance - Life Insurance
- Long-term Care Insurance
- Emergency Fund
- Disability Income Insurance
During the "Gather Information and Establish Goals"
step of the marketing/planning process most
successful financial professionals do which of the
Use an effective and following?
compliant "fact-finder"
form - Use an effective and compliant "fact-finder" form
- Begin the onboarding process
- Determine viable alternatives
- Identify possible solutions
The wealth accumulation level of the Financial
Planning Pyramid involves planning for the client's
investments and .
Savings
- Insurance
- Income
- Savings
- Estate plan
, Typical assumptions necessary in a plan include all of
the following EXCEPT
Mortality risk improvement - Rate of return on investment
- Mortality risk improvement
- Client's financial risk tolerance
- Rate of inflation
Which of the following tasks is typically part of the
retirement transition phase?
Selecting the source and
- Allocating funds for college education expenses
timing of various income
- Selecting the source and timing of various income
streams
streams
- Securing disability income insurance
- Accumulating funds for special purposes
A financial professional may decide to specialize in
one or more of the following areas of specialization
EXCEPT
Hedge fund management
- Retirement planning
- Estate planning
- Hedge fund management
- Insurance Planning
Which of the following is a factor that continues to
create opportunities for financial professionals?
- The ongoing series of U.S. income tax law changes
The ongoing series of U.S.
- The introduction of foreign financial products into
income tax law changes
the United States
- The relaxation of the definition of life insurance
- A decrease of the average age of the U.S.
population
UPDATED ACTUAL Questions and CORRECT
Answers
Which of the following would a financial professional
do in the "Implement the Plan" step of the
marketing/planning process?
Address any questions
and resistance. - Address any questions and resistance.
- Identify obstacles to goals.
- Determine the client's attitudes toward risk.
- Evaluate solutions and alternatives.
Which of the following statements concerning life-
cycle planning is correct?
A client in the peak - The career development phase is between ages 25
accumulation phase and 35 for most people.
generally has the greatest - A client in the peak accumulation phase generally
opportunity for has the greatest opportunity for accumulating wealth.
accumulating wealth. - Clients in the early career phase are most
concerned with estate planning goals.
- The preretirement phase typically lasts 10 to 15 years
before retirement occurs.
Trends that have created opportunities for financial
professionals engaged in financial planning include
which of the following?
I only
I. the population in the United States is aging rapidly.
II. continuing stability of financial conditions in the
economy
, Reasons people begin financial planning include
which of the following?
Both I and II
I. saving for a comfortable retirement
II. dependent support after my death
All of the following professionals using the
marketing/planning process would be considered to
be practicing single-purpose financial planning
EXCEPT
- a banker who opens a trust account for the benefit
an account who prepares
of a customer's handicapped child
a client's income tax return
- a life insurance agent who sells key person life
insurance to the owner of a small business
- an account who prepares a client's income tax return
- an investment advisor representative (IAR) who
advised a customer to buy shares of common stock of
a particular company
All of the following are common obstacles that
prevent or hinder clients from developing effective
financial plans EXCEPT
the lack of available
insurance and tax-favored - the human tendency to procrastinate
vehicles clients can use to - the lack of available insurance and tax-favored
meet financial planning vehicles clients can use to meet financial planning
goals goals
- the tendency for individuals and families to live
beyond their financial means
- the lack of financial knowledge among consumers
All of the following are subjects most often included
in a comprehensive financial plan EXCEPT
divorce planning - risk management and insurance planning
- divorce planning
- investment planning
- estate planning
, The client's present financial situation should include a
review of all of the following documents EXCEPT
Homeowner's insurance
- Net worth statement
declaration page
- Cash-flow statement
- Most recent tax return
- Homeowner's insurance declaration page
The wealth foundation level of the Financial Planning
Pyramid includes all of these areas EXCEPT
Long-term Care Insurance - Life Insurance
- Long-term Care Insurance
- Emergency Fund
- Disability Income Insurance
During the "Gather Information and Establish Goals"
step of the marketing/planning process most
successful financial professionals do which of the
Use an effective and following?
compliant "fact-finder"
form - Use an effective and compliant "fact-finder" form
- Begin the onboarding process
- Determine viable alternatives
- Identify possible solutions
The wealth accumulation level of the Financial
Planning Pyramid involves planning for the client's
investments and .
Savings
- Insurance
- Income
- Savings
- Estate plan
, Typical assumptions necessary in a plan include all of
the following EXCEPT
Mortality risk improvement - Rate of return on investment
- Mortality risk improvement
- Client's financial risk tolerance
- Rate of inflation
Which of the following tasks is typically part of the
retirement transition phase?
Selecting the source and
- Allocating funds for college education expenses
timing of various income
- Selecting the source and timing of various income
streams
streams
- Securing disability income insurance
- Accumulating funds for special purposes
A financial professional may decide to specialize in
one or more of the following areas of specialization
EXCEPT
Hedge fund management
- Retirement planning
- Estate planning
- Hedge fund management
- Insurance Planning
Which of the following is a factor that continues to
create opportunities for financial professionals?
- The ongoing series of U.S. income tax law changes
The ongoing series of U.S.
- The introduction of foreign financial products into
income tax law changes
the United States
- The relaxation of the definition of life insurance
- A decrease of the average age of the U.S.
population
