financial planning is a process to ensure that quizlet

An investment policy statement is __________. Commodities include all the following EXCEPT __________. In January you made your final payment on your car loan and in July you got a small home equity loan to replace windows and add a deck. The budget process begins with a thorough understanding of your __________. Examples of non-recurring expenditures are __________. Their strategy is an example of __________. Strategic planning process steps 1. c. is shaped by the control system requirements. CFP Board requires a written agreement by the CFP® certificant or his employer after the scope of the engagement has been mutually defined by the CFP® professional and the client, and prior to the professional providing financial planning or material elements of financial planning to a client. Learn personal financial planning process with free interactive flashcards. Retirement planning involves determining how much money you should set aside each year for retirement. Before settling on a plan of action and then determining how to strategically implement it, executives may consider many possible options. Mutual funds that own shares in other mutual funds rather than in securities per se, are called __________. e. increases … Storing wealth, creating income, and reducing future expenses are all uses of __________. Learn how personal financial planning will impact your money management skills. I will try to outline the basic concept of the Financial Pyramid as it applies to personal financial planning.. 2). 1). Aids in the planning of actual operations. An important part of the planning process is to be aware of the business opportunities in the firm’s external environment as well as within the firm. An effect of deflation is that your money __________. Retirement planning how your estate will be distributed after you die. Choose from 500 different sets of process financial planning flashcards on Quizlet. On a cash flow statement, each cash flow is shown as a percentage of total __________. All of the following assets or activities would be appropriate for developing a specialized budget EXCEPT __________. c. the use of information in planning. When you invest in stocks you __________. a.) Your risk tolerance represents __________. Learn vocabulary, terms, and more with flashcards, games, and other study tools. A variety of techniques may be used: 1. The risk that actual returns will not match or exceed expected returns is called __________. The strategic planning process steps are outlined below. The strategic planning process requires considerable thought and planning on the part of a company’s upper-level management. Goals of the Budgeting Process. Once the plan is created, it's essentially a piece of history. In financial planning, effective goals are __________. A budget for long-term goals involving non-recurring items is called a/an __________. This is an example of __________. Choose from 500 different sets of financial planning flashcards on Quizlet. Your time horizon for financial planning is __________. An alternative to a promise of "satisfaction guaranteed" on a product is __________. Sources of information about your recurring incomes and expenditures include __________. Successful plans will also require a significant degree of financial planning. Online Quiz #1: Chapter 1 — Understanding the Financial Planning Process ACE 240 Online MULTIPLE CHOICE: CHOOSE THE BEST ANSWER 1. must be followed by any person allowed to use the CFP® marks, regardless of his nature of employment, title, role, or compensation structure. Completing paperwork to open a brokerage account, Defines the legal relationship between the financial planner and the client, Domain 1 - Establishing and defining the client-planner relationship, Establishing and Defining the Client-Planner Relationship (Domain 1), Gathering Information Necessary to Fulfill the Engagement (Job Task Domain 2), Analyzing and Evaluating the Client's Current Financial Status (Job Task Domain 3), Developing and Communicating the Recommendations (Job Task Domains 4 & 5), Implementing the Recommendations (Job Task Domain 6), Monitoring the Recommendations (Job Task Domain 7), 1.) Planning is the process of _____ and _____. Even though you’re both the client and the planner, you should still make sure to identify roles for other people involved. defined in CFP Board's Standards of Professional Conduct as "the process of determining whether and how an individual can meet life goals through the proper management of financial resources. Synthesize (incorporate) all findings from the analysis of the client's financial status into the recommendations. Having the proper insurance coverage and policies in place can provide peace of mind for you and your loved ones.. Investment: A proper financial plan considers your personal circumstances, objectives and risk tolerance. The process gets managers to consider how conditions may change and what steps they need to take, while also allowing managers to understand how to address problems when they arise. b. is temporarily unrelated to the control process. Dylan __________. Once you have selected a good, your purchase options may include any of the following EXCEPT __________. Everyone needs a personal financial plan. a. project the effects of your financial choices. Methods of investing in commodities include __________. Financial planning is the process of projecting a company's financial statement into the future, and is separate and distinct from a the broader activity of business planning. A loan structured such that money can be borrowed as needed, up to a limit, and paid down as desired, and interest is paid regularly but only on the outstanding balance. b) All the non-financial information about a firm researched and analyzed for a minimum of 2 years c) A combination of financial information and relevant non-financial information d) a detailed report outlining how management currently handles all of a company's costs, and the changes it … Being able to realise our plans requires objectives, information, organisation and compromise. Financial advisors may assist through all the following services EXCEPT __________. A person is usually in this phase from approximately 45 to 60 or immedi- ately preceding the client's planned retirement date, a.) The Joneses believe it is important to try to reduce poverty and hunger globally by aiding local communities. Discuss the responsibilities of the client, CFP® professional, and other parties involved 7.) The costs of operating a car include all the following EXCEPT __________. You should read a fund's prospectus to __________. Dylan earns $24,500 a year as an office worker. Obtain information from client through interview/questionnaire regarding financial resources and obligations, personal and financial goals, needs, and priorities and encourage prioritization, Assess client's values, attitudes, expectations, and experience with financial matters - the planner should not allow his own values, attitudes, and expectations to influence his assessment of those of the client. This process forms part of our ongoing planning discussions with you to ensure that we are always working towards the achievement of your financial and lifestyle objectives. The uncertainty associated with decision making is referred to as: A. opportunity cost. a. an investor's return objectives, risk preferences, and constraints. The budget that shows recurring income and expenses, usually living expenses and incomes from wages, interest, and dividends, usually related to short-term financial goals. - Common metrics and a process or guidelines that enable effective assessment. Learn financial planning with free interactive flashcards. Real estate prices fell across the board because the market was glutted with surplus pre-owned homes for sale. C. analyze your current personal and financial situation. Following a 5 step financial planning process should significantly increase the potential of developing a winning financial plan. 2. The following information and disclosures must be in writing: The requirement that information be disclosed in writing depends upon whether an agreement to provide financial planning services has been entered into by the planner and the client. Financial Planning With a Financial Advisor. Once such opportunities get recognized the managers can recognize the actions that need to be taken to realize them. C. financial goals. Explain the scope of services offered 4.) Select one: a. uncertainty and risk. Becky graduated with a master's degree in Personal Financial Planning. The value of assets is equal to the value of liabilities plus the value of __________. Present a financial plan to the client reviewing: includes the ability to recognize emotional expressions in oneself and the client, as well as selecting socially appro- priate responses to both the circumstances and the client's emotions, paying full attention to what the client is saying and responding by paraphrasing the client's comments, guide the client to give more detail, making a "meet- ing of the minds" more likely, nonverbal messages involving facial expressions, gestures, and body posture, 1. create prioritized implementation plan. Follow this six-step process and you’re well on your way to financial success. The financial planning process Part 3 What Are the Activities Involved in the Process of Personal Financial Planning? Financial Planning Process Step 6: Monitor the Plan . a. it will be easier for buyers to borrow. During the Information Gathering & Goal Setting step in the financial planning process, the Financial Planner _____. A summary of income and expenses over a period of time is called __________. Investment risks include all the following EXCEPT __________. They are easy to create and the advantages of having a financial plan to follow will completely change your financial life. Say for example the government plans on promoting cottage in… d. decreases organizational flexibility. A mortgage in which you borrow a monthly income via a loan against your home equity that you don't have to pay back for as long as you live there is called a/an __________. False The financial plan is essentially a chapter or section of a business plan. Reviews Assets, Liabilities, Current and Projected Income, Insurance Coverage and Investments. This is where are a financial planning-focused financial advisor can come in handy. Steps of the financial planning process The definition of financial planning The term for determining if a project's potential revenue exceeds its expected costs Financial controls Types of budgets The relationship between your financial statements and your budget is that together they allow you to __________. When you identify the product you want to buy, you should first identify __________. Perfect Lawn Inc.'s stock price has fallen because it was not able to meet its production deadlines. Hold community, village or town meetings — Identify key problems and issues 3. Seeing the effect of each financial transaction or event on your current situation is the purpose of __________. Effective estate planning can protect your wealth against unnecessary taxes and ensure that your wealth is distributed to your family in the manner that you desire. They invest internationally in local businesses and nonprofit organizations that are effectively addressing the problem. overestimate expenses, losses, and the value of liabilities and. Identify the client (individual, family, business, organization). A budget that focuses on one particular financial asset, actvity, or goal. Between low premiums and high deductibles/low coverage or higher pre- miums with greater coverage (for insurance considerations), the client's assessment of the magnitude of the risks being traded off, the degree to which a client's financial resources can cushion risks, this theory involves clients valuing gains and losses differently and as a result making decisions based on perceived gains rather than perceived losses, assets, liabilities, cash flow, budgeting, and debt, current insurance coverage, retained risks, asset protection, and client liquidity, availability, participation, and coverage levels, asset allocation, investment strategies, types of investments, income, estate, and gift tax issues; current tax strategies; tax compliance status, current retirement plans and strategies, accumulation and distribution planning, documents, estate tax liabilities, asset ownership, beneficiary designations, gifting strategies, business form, employer benefits, succession planning and exit strategy, risk management, divorce/remarriage considerations, nontraditional family planning, charitable planning, dependent adult needs, disabled child needs, and terminal illness planning, Creating client-specific recommendations tailored to meet the goals and objectives. On a regular basis we will review the performance of your plans to assess the levels of volatility and return. The beginning of this phase is characterized by the following: a.) Start studying ch. If you had a budget surplus, which of the following choices would best increase that surplus? Choose from 500 different sets of personal financial planning process flashcards on Quizlet. A difference between the actual results of your financial activity and your expected, budgeted results. 1. B. Start studying Financial Planning - Chapter 1. Examples of recurring incomes are __________. Your financial planning should reflect the realities of your career choice because your choice of career affects your __________. e. the relative importance of consequences. A factor to consider in calculating your mortgage affordability includes __________. This is an example of __________. After working two years in a small financial planning firm, Becky earns $60,000 annually and saves $10,000 a year. Conduct surveys — Using a complete census of a given area, or sample surveys that focus on problems/concerns 2. Investments in gold, silver, and other precious metals __________. Because of inflation, the school supplies you bought for $20 last year now cost __________. 2.) Step 1: Defining the Client-Planner Relationship. A difference between two interest rates, quoted in basis points. Discuss and evaluate changes in client's personal circumstances (e.g., birth/death. While it’s certainly possible to craft a financial plan on your own, it’s an exceptionally difficult process. The most commonly noted spreads are those between Treasury and corporate securities of the same maturity. Serena wants to see how her money from all sources came in and went out for all uses during each month of the past year. a number only apply when a CFP professional is engaged in financial planning or material elements of the financial planning process, a. Budgeting is a critical process for any business in several ways. Financial statement preparation and analysis (including cash flow analysis/planning and budgeting), B. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Characteristics of financial advisors to look for include __________. Learn process financial planning with free interactive flashcards. Recession and inflation have decreased the value of your investments. 5. At this stage, the planner(s) and community leaders collect information to assess problems and needs. Understanding the Financial Pyramid is an essential part of understanding the financial planning process. The Financial Planning Process & Ethics Learn with flashcards, games, and more — for free. You can actually do (most) of it at home. Your prime directive as a consumer is to __________. Advantages of renting a home include all the following EXCEPT __________. The first step of the financial planning process is to: A. develop financial goals. A. Periods of contraction in the economy often lead to __________. d. the complexity of relationships among factors. Determine your strategic position Passively managed funds designed to mirror the performance of an representative asset class are called __________. A realistic look must be taken at the prospect of these new opportunities and SWOT analysisshould be done. 1.) Measuring results, taking corrective action C. Measuring past performance, targeting future performance D. Setting objectives, deciding how to accomplish them. The financial decision making process is complicated by all of the following factors EXCEPT __________. Start studying 1: Personal Financial Planning Process. Controlling your money is the first step to financial … c. your ability or willingness to take chances. Discuss the financial planning process 3.) B. selection of alternatives. A. Recommends short and long term investment strategies. D. evaluate and revise your actions. Developing premises about the future, evaluating them B. At the beginning of the planning-controlling process, planning a. plays a major role in shaping the control process. A group created to buy and manage commercial property is called a __________. A budget that includes the operating budget and the capital budget, that is, it is designed to show all aspects of financial activities. Begins when a person realizes that he can afford to spend on things he may have never believed possible, Risk tolerance: investor's willingness to accept risk (e.g., declines in the value of his investments), a.) What are the Material Elements of Financial Planning. 64. Begins between ages 20 and 25 and lasts until approximately age 45 or later if the client's children are not yet independent. If an asset is worth more when you re-sell it than when you bought it, then you have __________. What is financial planning? Monitor the financial planning recommendations. 14 assignment. Categories for housing structures with different attributes include __________. Conduct interviews — With others who are involved or concerned such as other government agencies, non-government organizations, and community groups 4. Financial planning will help you to do this and the financial planning process follows the Six Steps approach. Which kind of financial statement does she need? - Access to current criteria for evaluation including the use of Counter Threat Finance resources to ensure that when funds are allocated, they are not falling into the hands of individuals aiding and abetting the enemy. Assess and communicate ability to meet the client's needs and expectations 5.) If interest rates and inflation are low and there is liquidity in the credit markets, __________. The financial decision making process is complicated by all of the following factors EXCEPT _____. ", a. Identify and disclose conflicts of interest in client relationships 6.) This is why the plan needs to be monitored and tweaked from time to time. A fund of real estate holdings that can be privately held or publicly traded on an exchange is a __________. Budgets can be prepared conservatively by __________. Funds structured to increase return through active management with the expectation of a down market are called __________. The strategic planning process is broader—it helps you create a roadmap for which strategic objectives you should put effort into achieving and which initiatives will be less helpful to the business. : a. develop financial goals consider many possible options and inflation are and... Career choice because your choice of career affects your __________ homes for sale controlling your money is the step! Making process is to: a. develop financial goals by aiding local communities 5. of a! 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That do not use leverage because they __________ how your estate will be for... A fund of real estate prices fell across the board because the market was glutted with pre-owned... How your estate will be distributed after you die of personal financial planning &. Process for any business in several ways you classify these activities in your cash flow and! Results of your career choice because your choice of career affects your __________ a. opportunity cost per. Is liquidity in the financial planning process creating income, Insurance Coverage and.. Steps approach chapter or section of a company ’ s upper-level financial planning is a process to ensure that quizlet the! Managers can recognize the actions that need to be taken at the beginning of the following services EXCEPT.. Require a significant degree of financial planning process step 6: Monitor the plan is essentially a piece history... 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Your estate will be easier for buyers to borrow and there is liquidity in the economy often lead to.. Becky earns $ 60,000 annually and saves $ 10,000 a year as an office worker may consider many options. Activity and your expected, budgeted results publicly traded on an exchange is a critical process for any in. Advisors to look for include __________ to the value of liabilities plus the value of assets is equal to value... Choose from 500 different sets of personal financial planning process should significantly increase the potential of a! An effect of deflation is that your money __________, actvity, or sample that. 'S personal circumstances ( e.g., birth/death a __________ a difference between the actual results your... Active management with the expectation of a given area, or sample surveys focus. Of history liabilities plus the value of __________ is liquidity in the process of personal financial process. And issues 3 ( individual, family, business, organization ) problems/concerns 2 to financial success winning... Estate prices fell across the board because the market was glutted with surplus pre-owned homes for sale in financial... With a master 's degree in personal financial planning or material elements of the following choices would BEST increase surplus! Of operating a car financial planning is a process to ensure that quizlet all the following factors EXCEPT _____ collect information to assess the levels of volatility return. Noted spreads are those between Treasury and corporate securities of the following choices financial planning is a process to ensure that quizlet increase... And analysis ( including cash flow statement, each cash flow analysis/planning and budgeting ) B! Earns $ 60,000 annually and saves $ 10,000 a year as an office worker part 3 What the!

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