Personal Financial Planning

Question 1

What defines the asset accumulation phase?

Answer 1

Usually up to around 45 years old
Low net worth
High debt
Lack of concern for risk
Low income

Question 2

What are approved CFP nouns?

Answer 2

Certificate
Certificant
Professional
Practitioner 
Mark
Exam

Question 3

What is the purpose of the code of ethics and standards of conduct?

Answer 3

It benefits and protects the public, provides standards for delivering financial planning, and advances financial planning as a distinct and valuable profession

Question 4

What defines the conservation or protection phase?

Answer 4

Approximately ages 45-60
Increased cash flow
less reliance on debt
more risk adverse

Question 5

What are contextual variables in a client’s life?

Answer 5

Family status
Net worth
Income level
Life or professional stage
Other circumstances

Question 6

What defines the distribution or gifting phase?

Answer 6

Age 60+ or retirement
Implementation of gifting strategies
High net worth
Low debt
distribution strategies

Question 7

What is financial planning?

Answer 7

The integrated coordinated management of an individuals financial situation

Question 8

What is the most difficult step in the planning process?

Answer 8

Analyzing the current and potential client COAs: requires deep knowledge across all areas of financial planning to tie a plan together

Question 9

What are the practice standards for financial planning?

Answer 9

UGADPIM

UNDERSTANDING the clients personal and financial circumstances
Identifying and selecting GOALS
ANALYZING the clients current and future COAs
DEVELOPING the FP recommendations
PRESENTING the FP recommendations
IMPLEMENTING the FP recommendations
MONITORING progress and update the FP

Question 10

What are the approved nouns for CERTIFIED FINANCIAL PLANNER (TM)?

Answer 10

Certificant
Professional
Practictioner
Certification
Mark
Exam