AGLS Exam 3- FLASHCARDS - Finding a good financial planner done

Question 1

How many Americans retire each day and how many of those Americans will likely run out of money?

Answer 1

10,000 retire each day and 4,000 will likely run out of money

Question 2

What is the value of the market capitalization of all the world’s stock markets?

Answer 2

73 trillion

Question 3

What is the first step of what an advisor should do for you?

Answer 3

Clarify the situation. Help clients underatand their financial situation and goals

Question 4

What do you discuss when clarifying the financial situation?

Answer 4

Assets. debts, income, and expenses

Question 5

What is income?

Answer 5

Money you recieve

Question 6

What are expenses?

Answer 6

Money spent to pay the bills

Question 7

What are assets/wealth?

Answer 7

Money left over

Question 8

What do liabilities do?

Answer 8

Reduce wealth

Question 9

How many hours does the average American woek during their lifetime?

Answer 9

90,000 hours

Question 10

What risks should a financial planner help you identify?

Answer 10

Health issues, insurance gaps, and life events

Question 11

What is the second step of what an advisor should do for you?

Answer 11

Assess your risk. Determine how much risk should be taken with clients’ investments

Question 12

When assesing risk, a financial planner will look at what two things?

Answer 12

Your time and temperature

Question 13

What is the third step of what an advisor should do for you?

Answer 13

Invest accordingly. Build and maintain a portfolio of investments near the selected risk level

Question 14

What does a financial advisor monitor?

Answer 14

They monitor your portfolio to ensure that the actual speed of its investments remain near the client’s speed limit

Question 15

What is the fourth step of what an advisor will do for you?

Answer 15

Keep you informed. Keep clients up to date on market changes and other financial issues

Question 16

What can cause a lot of stress and confusion for investors?

Answer 16

Noise (news, investment gurus, neighbors trying to tell us how to invest)

Question 17

What is a way financial advisors try to cancel out noise for their clients?

Answer 17

Through monthly market updates

Question 18

What is the fifth step of what an advisor will do for you?

Answer 18

Update your plan. Meet with clients regularly to revise their portfolio as needed

Question 19

What are some common questions financial advisors will ask their clients?

Answer 19

What big life events have happened over the past year? Do you have an evergency fund? Do you have any identity theft insurance? What new debts have you taken on since the last time we spoke? Have you taken any steps to safeguard your digital estate?

Question 20

What is the sixth step of what an advisor will do for you?

Answer 20

Help your clients stay on track when faced with uncertainty in the financial markets

Question 21

What are the five smart investing principles?

Answer 21

1. Estimate your time horizon. 2. Know your risk profile. 3. Diversify. 4. Consider taxes and inflation. 5. Get started now

Question 22

What are ways to find a good financial advisor?

Answer 22

Ask a friend, don’t fall for pressure tactics, ask lots of questions, and do your own research