CFP General Principles Final REB
Test With All Correct Updated
Answers
Financial Planning. - Ans--The process of determining whether and how
clients can meet their goals through proper management of financial
resources.
8 Major Domains. - Ans--Establishing and defining the client-planner
relationship.
Gathering information necessary to fulfill the engagement. - Ans--Analyzing
and evaluating the client's current financial status.
Developing the recommendations. - Ans--Communicating the
recommendations.
Implementing the recommendations. - Ans--Monitoring the
recommendations.
Practicing within - Ans--professional and regulatory standards.
Domain One. - Ans--Establishing and defining the client planner
relationship.
Identify the client. - Ans--Discuss financial planning needs and expectations
of the client.
Discuss the financial planning process with the client. - Ans--Explain scope
of services offered by the CFP professional and his firm.
Assess and communicate the CFP professional's ability to meet the client's
needs and expectations. - Ans--Identify and resolve apparent and potential
conflicts of interest in client relationships.
, Discuss the client's responsibilities and those of the CFP professional. -
Ans--Define and document the scope of the engagement with the client.
Provide client disclosures. - Ans--Regulatory disclosure. Compensation
arrangements and associated potential conflicts of interest.
Domain Two. - Ans--Gathering information necessary to fulfill the
engagement.
Identify the client's values and attitudes. - Ans--Explore with the client their
personal and financial needs, priorities and goals.
Explore the client's time horizon for each goal. - Ans--Assess the client's
level of knowledge and experience with financial matters .
Assess the client's risk exposures such as longevity, economic, liability and
healthcare. - Ans--Assess the client's risk tolerances such as investment,
economic, liability and healthcare.
Gather data. - Ans--Summary of assets such as cost basis information,
beneficiary designations and titling.
Summary of liabilities such as balances, terms and interest rates. - Ans--
Summary of income and expenses.
Estate planning documents. - Ans--Education plan and resources.
Retirement plan information. - Ans--Employee benefits.
Government benefits such as social security and Medicare. - Ans--Special
circumstances such as legal documents and agreements, family situations.
Tax documents. - Ans--Investment statements.
Insurance policies and documents such as life, health, disability and liability.
- Ans--Closely held business documents such as shareholder agreements.
Test With All Correct Updated
Answers
Financial Planning. - Ans--The process of determining whether and how
clients can meet their goals through proper management of financial
resources.
8 Major Domains. - Ans--Establishing and defining the client-planner
relationship.
Gathering information necessary to fulfill the engagement. - Ans--Analyzing
and evaluating the client's current financial status.
Developing the recommendations. - Ans--Communicating the
recommendations.
Implementing the recommendations. - Ans--Monitoring the
recommendations.
Practicing within - Ans--professional and regulatory standards.
Domain One. - Ans--Establishing and defining the client planner
relationship.
Identify the client. - Ans--Discuss financial planning needs and expectations
of the client.
Discuss the financial planning process with the client. - Ans--Explain scope
of services offered by the CFP professional and his firm.
Assess and communicate the CFP professional's ability to meet the client's
needs and expectations. - Ans--Identify and resolve apparent and potential
conflicts of interest in client relationships.
, Discuss the client's responsibilities and those of the CFP professional. -
Ans--Define and document the scope of the engagement with the client.
Provide client disclosures. - Ans--Regulatory disclosure. Compensation
arrangements and associated potential conflicts of interest.
Domain Two. - Ans--Gathering information necessary to fulfill the
engagement.
Identify the client's values and attitudes. - Ans--Explore with the client their
personal and financial needs, priorities and goals.
Explore the client's time horizon for each goal. - Ans--Assess the client's
level of knowledge and experience with financial matters .
Assess the client's risk exposures such as longevity, economic, liability and
healthcare. - Ans--Assess the client's risk tolerances such as investment,
economic, liability and healthcare.
Gather data. - Ans--Summary of assets such as cost basis information,
beneficiary designations and titling.
Summary of liabilities such as balances, terms and interest rates. - Ans--
Summary of income and expenses.
Estate planning documents. - Ans--Education plan and resources.
Retirement plan information. - Ans--Employee benefits.
Government benefits such as social security and Medicare. - Ans--Special
circumstances such as legal documents and agreements, family situations.
Tax documents. - Ans--Investment statements.
Insurance policies and documents such as life, health, disability and liability.
- Ans--Closely held business documents such as shareholder agreements.
