AGLS Exam 3- FLASHCARDS - Finding a good financial planner done
How many Americans retire each day and how many of those Americans will likely run out of money?
10,000 retire each day and 4,000 will likely run out of money
What is the value of the market capitalization of all the world’s stock markets?
73 trillion
What is the first step of what an advisor should do for you?
Clarify the situation. Help clients underatand their financial situation and goals
What do you discuss when clarifying the financial situation?
Assets. debts, income, and expenses
What is income?
Money you recieve
What are expenses?
Money spent to pay the bills
What are assets/wealth?
Money left over
What do liabilities do?
Reduce wealth
How many hours does the average American woek during their lifetime?
90,000 hours
What risks should a financial planner help you identify?
Health issues, insurance gaps, and life events
What is the second step of what an advisor should do for you?
Assess your risk. Determine how much risk should be taken with clients’ investments
When assesing risk, a financial planner will look at what two things?
Your time and temperature
What is the third step of what an advisor should do for you?
Invest accordingly. Build and maintain a portfolio of investments near the selected risk level
What does a financial advisor monitor?
They monitor your portfolio to ensure that the actual speed of its investments remain near the client’s speed limit
What is the fourth step of what an advisor will do for you?
Keep you informed. Keep clients up to date on market changes and other financial issues
What can cause a lot of stress and confusion for investors?
Noise (news, investment gurus, neighbors trying to tell us how to invest)
What is a way financial advisors try to cancel out noise for their clients?
Through monthly market updates
What is the fifth step of what an advisor will do for you?
Update your plan. Meet with clients regularly to revise their portfolio as needed
What are some common questions financial advisors will ask their clients?
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?
What is the sixth step of what an advisor will do for you?
Help your clients stay on track when faced with uncertainty in the financial markets
What are the five smart investing principles?
- Estimate your time horizon. 2. Know your risk profile. 3. Diversify. 4. Consider taxes and inflation. 5. Get started now
What are ways to find a good financial advisor?
Ask a friend, don’t fall for pressure tactics, ask lots of questions, and do your own research
