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10 Cards in this Set
- Front
- Back
- 3rd side (hint)
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The 6-steps of the Financial Planning Process are:
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1.Establish & Define Relationship
2.Gather data / get goals and objectives 3.Analyze Information 4.Develop Plan 5.Implement Plan 6.Monitor Plan |
EGADIM
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The 6-steps of the Financial Planning Process are:
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1.Establish & Define Relationship
2.Gather data / get goals and objectives 3.Analyze Information 4.Develop Plan 5.Implement Plan 6.Monitor Plan |
EGADIM
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The 7 Principles of Ethics and Prosessional Responsibility
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•Principle 1 – Integrity
•Principle 2 – Objectivity •Principle 3 – Competence •Principle 4 – Fairness •Principle 5 –Confidentiality •Principle 6 –Professionalism •Principle 7 – Diligence |
IOCFCPD
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What things are found on a balance sheet?
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Assets and liabilities at FMV (Full market value) / Net Worth
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What are the three types of assets in the Balance Sheet?
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1. Cash
2. Invested Assets 3. Use Assets (residence, furniture, autos) |
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What are the two catagories of liabilities listed in LIABILITIES on Balance Sheet
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1. Current Liabilities (credit card balances)
2. Long-term liabilities (auto loans, mortgages, life insurance loans) |
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What are examples of things that increase / decrease Net Worth on balance sheet?
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INCREASE
Shares of S&P 500 Index fund increse in value with market DECREASE Interest rates have a substatial increase and the client has a big bond portfolio |
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What are examples events which have NO impact (increase or decrease) of Net Worth?
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1. Paying off debt with cash (repayment of a loan using funds from a savings account)
2. Buying an asset with cash (purchase of an auto 75% financed and 25% down payment - addition of auto increases assets - 25% / down payment decreases cash - 75% / financing increases liabilities - again a wash |
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To determine if A / L should be on balance sheet it should have 3 characteristics:
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1. A/L fixed and determinable amount
2. Receipt or payment NOT contigent on occurence of particular event 3. Receipt or payment does NOT require future performance or service |
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Be familiar with examples of liquidity (in order of liquidity)
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1. Mutual Funds
2. Cash value life insurance 3. Real Estate residence 4. Jewelry keep in mind what kind of primary and secondary markets exist for each asset listed |
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