Test Review Flashcards
What is the first step in a comprehensive financial plan
Specifying the responsibilities of each party for implementing the plan and carrying it through to completion.
An Explanatory response is intended to make the client feel
like they understand the topic at hand (fund type, annuity, etc.) through usage of simple language
A Suggestive response is intended to make the client feel
helped, through the offering of a couple of suggestions and ultimately letting the client make the final decision
An Interpretive response is intended to make the client feel
understood, through a restatement of what the client is expressing
A Reassuring response is intended to make the client feel
at ease, make them feel better and bolster their spirits
What is disintermediation
It reduces federal reserves in the banking system as well as reducing deposits held in banks. It places more funds into various investment vehicles.
What type of lease is riskier for the consumer
Open-ended lease
What are the three topics financial planners specialize in according to the CFP Board
Comprehensive Planning
Investment Planning/Advice
Pension/Retirement Planning
How is the NPV calculated from an Investment Opportunity
Subtract the present value of money outflows from the present value of money inflows
What expenses can be claimed with the Tax Credit for Adoption
Legal fees and court costs
What areas of financial planning should a comprehensive plan include
The main 7 areas: General Principles Insurance/Risk planning Education planning Investment planning Income tax planning Retirement planning Estate planning
What does the Truth-in-securities law - Securities Act of 1933 require
It requires investors recieve financial and other significant information concerning the securities being offered to the public
What are close-ended questions
yes/no
true/false
either/or
