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FPQP EXAM 2024 QUESTIONS & ANSWERS VERIFIED 100% CORRECT!!
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FPQP EXAM 2024 QUESTIONS & ANSWERS VERIFIED 100% CORRECT!!
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Name: Score:47 Multiple choice questions
Term 1 of 47
In order to build equity, one must -- the asset.
if the injured party contributed in any way to injury, they cannot collect damages
Own the asset.
(Not rent or lease it).
the planner determines the appropriate asset categories for the client's objective, time
horizon, etc.
covers almost all aspects of a personal's financial situation (including risk mamagenet,
investment planning, tax, retirement, and estate planning)
Definition 2 of 47
Person injured had a chance to not be, but did not stop it from happening.
Targeted Financial Plan
Comparative Negligence
Last Clear Change
Comprehensive Financial Plan
Term 3 of 47
Housing should not exceed -- of -- monthly income.
Housing should not exceed 28% of gross monthly income.
Housing should not exceed 50% of net monthly income.
Housing should not exceed 10% of annual income.
Housing should not exceed 35% of total income.
,Definition 4 of 47
Is the difference between assets and liabilities.
Areas most often bulk of individual's net worth is in home equity, personal property, and/or
retirement benefits.
Assets
Net Income
Net Worth
Cash Flow Statement
Definition 5 of 47
1. Risk Avoidance
2. Risk Reduction
3. Risk Retention
4. Risk Transfer
Back end debt-to-income Ratio
(Financial Ratios)
4 Components of Negligence (reckless)
4 Essential Techniques for Risk Management
Front end debt-to-income Ratio
(Financial Ratios)
, Term 6 of 47
Chapter 7
(Bankruptcy)
Wage earner's plan.
For individuals (not businesses).
Designed for debtors who want to pay off their debts under a court supervised plan.
Criteria = regular/stable income, disposable income.
Straight or Full bankruptcy.
Immediate liquidation of available assets and discharges (cancellation) of remaining assets.
Debts not excused = allimony, child support, education loans.
Can only file for Chapter 7 once every 8 years.
Should be a last resort!
A cash flow statement summarizes actual cash receipts and cash disbusements for a
specified period of time.
Records inflows and outflows over a period of time.
(Inflows = income, salary, investments
Outlfows = loan payments, utility payments)
+/- cash flow likely affects an individual's net worth.
Predictable and reoccurring. (Indviduals have little to no conrol over fixed outflow
amounts).
Examples:
Housing (rent or mortgage)
Insurance payments
Auto notes
Loan payments
Court ordered support/alimony
Taxes
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