Ch 1

Question 1

Personal financial planning is the comprehensive process of…3

Answer 1

1 formulating

2 implementing

3 monitoring financial decisions guiding families to reach their financial goals

Question 2

First 4 of 7 steps of financial planning process

Answer 2

1 understanding the client’s personal and financial circumstances
2 identifying and selecting goals
3 analyzing the client’s current course of action
4 developing financial planning recommendations

Question 3

Last 3 of 7 steps in the financial planning process

Answer 3

5 presenting financial planning recommendations

6 implementing financial planning recommendations

7 monitoring progress and updating

Question 4

Internal data examples

Answer 4

Insurance portfolio information

Banking and investment info

Tax info

Question 5

External data

Answer 5

Interest rates

Housing market

Job market

Question 6

Basic necessary components of an engagement letter should include 5

Answer 6

1 parties to the agreement
2 Services to be provided
3 description of fees
4 duration of agreement
5 conditions where the agreement is terminated