Lesson 1 Quiz Questions

Question 1

Seven Steps of the Financial Planning Process

Answer 1

1. Understanding the Client’s Personal and Financial Circumstances
2. Identifying and Selecting Goals
3. Analyzing the Client’s Current Course of Action and Potential Alternative Course(s) of Action
4. Developing the Financial Planning Recommendation(s)
5. Presenting the Financial Planning Recommendations
6. Implementing the Financial Planning Recommendation(s)
7. Monitoring Progress and Updating

Question 2

Components of an Engagement Letter

Answer 2

1. The defined parties to the agreement
2. Description of the fees and the costs
3. Time horizon for the work to be completed

Question 3

How do Financial Planners Earn Compensation?

Answer 3

1. Percentage of Assets Managed
2. Hourly Rate or Fee
3. Commission on Investment and Insurance Products Sold