Financial Phrases

Question 1

Emotional Buying and Selling

Answer 1

• Always, remember, people buy with emotions first and then justify with logic afterwards.

Question 2

Describe a Market Correction

Answer 2

• The market may fall into a correction either briefly or for sustained periods—days, weeks, months, or even longer.
• A correction is a decline of 10% or greater in the price of a security, asset, or a financial market.
• However, the average market correction is short-lived and lasts anywhere between three and four months.
• While a correction is damaging in the short term, a correction can be healthy, adjusting overvalued asset prices and providing buying opportunities.

Question 3

What to say when a client states they want to prepare for retirement and the unexpected?

Answer 3

I’m hearing that you want to prepare for retirement and prepare for the unexpected.

Question 4

Explaining the Risk Tolerance Questionaire

Answer 4

It is so important that we figure out where you stand in terms of your comfort for risk.

Question 5

Example to explain a difference

Answer 5

Let’s consider an example to bring this difference in sharper focus.

Question 6

Can’t tolerate risk

Answer 6

Some clients have a psychological aversion to risk, even moderate investment risk is too much risk.

Question 7

Time Horizon Simplified

Answer 7

I need to know what the customer hopes to achieve through his or her investment and when he or she hopes to achieve it.

Question 8

Reason for buying life insurance

Answer 8

or many clients the most important is the need to replace a breadwinner’s earned income on his or her death.

Question 9

Task Accomplishment in Different Manners

Answer 9

Although they accomplish the same task, they have some important differences.

Question 10

If I could do it all over again, what would you do different?

Answer 10

If you can back up the calendar, what would you do different?

Question 11

How to describe the Early Withdrawal from Qualified Retirement Plans.

Answer 11

For taxpayers considering taking withdrawals from qualified annuities before age 59½, these would be subject to a 10% early distribution penalty, though the exceptions of Death and Disability do apply.

Question 12

Longer-term goals can generally tolerate higher amounts of risk than shorter-term goals.