Fundamentals Lesson 5

Question 1

Internal Analysis:
The way people work, spend, safe, & think
Focus is on client’s __ & __
Internal data effects client’s goals & behavior

Answer 1

Strengths & Weaknesses

Question 2

Internal data includes:

Answer 2

Life cycle position
Attitudes & beliefs
Special needs
Financial position
Client’s perception of financial position

Question 3

Life Cycle Position:

Answer 3

Age
Marital status
Dependents
Income & Net worth

Question 4

Attitudes & Beliefs:

Answer 4

Risk tolerance
Savings & consumption habits
Views on employment/retirement
Attitude regarding tax
ALL impact client’s goals & behavior

Question 5

Crisis Events puts a:

Answer 5

Heavier emphasis on emergency fund

Question 6

Comprehensive planning includes:

Answer 6

Insurance
Investments 
Emergency funds
Estate planning
Financial issues
Legal issues

Question 7

Check Lists for Planners to Provide:

Answer 7

Caregivers: contacts, assistance, legal documents
Job loss: file for unemployment first! 
COBRA: 60 days
401(k) Rollover: 60 days
Options/Restricted Stock: 90 days

Question 8

Federal Programs:

Answer 8

Special education
Social security
Benefits for disabled veterans

Question 9

State & Local Programs:

Answer 9

Residential 
Transportation
Respite care
Family support
Day program
Employment

Question 10

Lesson 5 Review:
As a planner it’s critical to determine a client’s life cycle position because:

A. Must know how many dependents the client has
B. Life cycle position impacts client’s goals & behaviors
C. Net worth is critical to planning process
D. Life cycle position impacts Rick tolerance & time horizon

Answer 10

B

Question 11

Lesson 5 Review:
Which of the following are internal data that identifies the client’s attitudes & beliefs?

A. Risk tolerance
B. Savings & consumption habits
C. Guess about employment, retirement, leisure
D. All of the above

Answer 11

D

Question 12

Lesson 5 Review:
Client age 35, married with 2 kids (3&5) has a need for all of the following except:

A. Life insurance
B. Disability insurance
C. Estate planning
D. Long term care insurance

Answer 12

D

Question 13

Lesson 5 Review:
Retired client 65 with significant assets has 2 kids (30&35) & 5 grandkids. May have need for all of the following except:

A. Long term care insurance
B. Health insurance
C. Disability insurance
D. Personal liability insurance

Answer 13

C

Question 14

Lesson 5 Review:
Which of the following is a federal program available for crisis events?

A. Special education programs
B. Respite care
C. Transportation services
D. Day program services employment services

Answer 14

A