Chapter 1

Question 0

Second domain of financial planning

Answer 0

Gathering information necessary to fulfill the engagement

Question 1

1st domain of financial planning

Answer 1

Establishing and defining the client-planner relationship.

Question 2

Third domain of financial planning

Answer 2

Analyzing and evaluating the clients current financial status

Question 3

Fourth domain of financial planning

Answer 3

Developing the recommendations

Question 4

Fifth domain of financial planning

Answer 4

Communicating the recommendation(s)

Question 5

Six domain of financial planning

Answer 5

Implementing the recommendations

Question 6

Seventh domain financial planning

Answer 6

Monitoring the recommendations

Question 7

Eighth domain of financial planning

Answer 7

Practicing within professional and regulatory standards

Question 8

Three stages of financial planning pyramid

Answer 8

Guarding against uncertainty
Growing investments
Managing retirement and estate

Question 9

Single purpose approach

Answer 9

Selling one product to meet one need of the financial plan

Question 10

Multiple purpose approach

Answer 10

Dealing with more than one area of the financial planning process

Question 11

Comprehensive approach

Answer 11

Considers all aspects of a clients financial position

Question 12

Financial life cycle

Answer 12

1. Early career
2. Career development
3. Peak accumulation
4. Pre-retirement
5. Retirement

Question 13

Life cycle financial planning

Answer 13

Comprehensive financial planning that starts at a young age and is monitored throughout the financial life cycle.

Question 14

Subjects of a comprehensive financial plan

Answer 14

• Financial planning principles
• Insurance planning and risk management
• Employee benefits planning
• Investment planning
• Income tax planning
• Retirement planning
• Estate planning

Question 15

Three obstacles of financial planning

Answer 15

• Tendency to procrastinate
• Live up to or beyond current income
• Lack of financial knowledge