FPQP - Module 1 - The Financial Planning Process Exam Questions And Answers
4 views 1 purchase
Course
FPQP
Institution
FPQP
LO 1-1: Definition of personal financial planning - ANS "a collaborative process that helps maximize a Client's potential for meeting life goals through Financial Advice that integrates relevant elements of the Client's personal and financial circumstances."
LO 1-1: Areas of financial pl...
FPQP - Module 1 - The Financial
Planning Process Exam Questions And
Answers
LO 1-1: Definition of personal financial planning - ANS "a collaborative process that helps
maximize a Client's potential for meeting life goals through Financial Advice that integrates
relevant elements of the Client's personal and financial circumstances."
LO 1-1: Areas of financial planning - ANS 1. developing goals
2. cash management
3. debt management
4. risk management planning
5. insurance planning
6. educational needs
7. group benefits planning
8. investment planning
9. retirement planning
10. income tax planning
11. philanthropic interests
12. estate planning
LO 1-1: Seven Steps of (personal) Financial Planning - ANS 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 alternate course(s) of action
4. Developing the financial planning recommendations
5. Presenting the financial planning recommendations
6. Implementing the financial planning recommendations
7. Monitoring the progress and updating
, LO 1-1: What is the difference between comprehensive and targeted planning? - ANS 1.
Comprehensive planning just about covers all aspects of a person's financial situation including
consideration of risk management, investment planning, tax planning, retirement planning, and
estate planning
2. Targeted planning typically addresses only a segment of an individual's objectives such as
trying to buy a first home, caring for an elderly parent, or reducing tax burdens. Often times a
targeted plan becomes the starting point for a comprehensive plan.
LO 1-2: Steps to setting a financial goal - ANS 1. Potential goals should be identified by the
client
2. Time frame has to be established
3. Goal should be stated in quantifiable terms as far as amount (e.g., how much money and
beginning when)
LO 1-2: What does PTA stand for? (as it relates to goal setting) - ANS Purpose
Time frame, and
Amount
LO 1-3: Defining the engagement - ANS -Done prior to the seven-step financial planning
process
-Client and planner mutually agree on the SCOPE of the engagement
-Defining the engagement is the following steps:
-identifying the service(s) to be provided (and services being excluded)
-disclosing the planner's compensation arrangement(s)
-determining the responsibilities of client and planner
-establish the duration of the engagement
-provide any additional info necessary to determine, define, or limit the scope of engagement
LO 1-3: Step 1 of Financial Planning Process: Understanding the client's personal and financial
circumstances - ANS it-2 types of information the must be gathered to properly assess
client's situation:
1. determining a client's personal and financial goals, needs, and priorities (qualitative info)
2. obtaining quantitative info and documents
-QuaLitative info (Lifestyle info):
-planner has to understand the client's values, attitudes, priorities, and expectations.
-the planner is dependent on the client for this info so the planner needs to stress the
importance of being open and honest and accurate
-QuaNtitative info (Names and Numbers):
-the planner needs to determine what documents they may need
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller DocLaura. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.09. You're not tied to anything after your purchase.
