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22 Cards in this Set

  • Front
  • Back
What is a financial planner?
A professional who analyzes a client's overall financial situation and develops a comprehensive plan that meets his or her goals and objectives.
How many main areas must a financial planner deal with?
What is "risk management?"
The identification of the various financial risks a client is exposed to and the reduction of those risks to meet client ability to tolerate those risks through. In financial planning, risk management is typically accomplished by various insurance products and investment products, such as diversification, to reduce risk which the client finds unacceptable.
What is "investment planning?"
the process of determining how to invest current assets and future savings based on your financial goals, your tax status, your attitude toward risk and your financial position.
What is tax planning?
The use of existing tax code to legally reduce the amount of taxes a person might otherwise have to pay.
What is "estate planning?"
The process of planning the transfer of all personal assets at time of death to chosen beneficiaries.
What is "retirement planning?"
The process of establishing a retirement income goal and gathering information about your potential sources of retirement income. The information is then used to help determine if your projected retirement cash flow is adequate to fund your needs.
What are the five areas of financial planning?
Risk management, investment planning, tax planning, estate planning and retirement planning.
What is the objectives of retirement planning.
Have enough money to enjoy retirement years and not run out of money before you die.
What is the primary objective of estate planning.
To make sure your heirs and not your Uncle (Sam) get your assets when you die.
What is THE preferred method of generating new business for a financial planner?
If a financial planner needs to mass market, what works best?
Which market place do financial planners tend to concentrate on?
Retirement planning
How are financial plans typically prepared?
They enter income, investment and other data into a computer program and it produces a financial plan.
What is the name of one of the major financial planning programs?
Financial Profiles
What does CFP stand for?
Certified Financial Planner
How do you get a CFP designation?
Follow a two-year course of study and pass a series of exams on subjects such as taxes, securities, insurance and estate planning.
What typically happens in a first meeting between a financial planner and a prospective client?
The planner gathers data about the goals, values, resources and risk tolerance of the prospect?
Based on the data the planner compiled, what happens next?
The Planner creates a financial plan for the client?
What typically happens in the second meeting?
The Planner presents the plan to the clients.
Once a client agrees to folllow a plan, what is the next step?
The clients sign various forms so their assets can be transferred to the financial planner's broker/dealer.
Once the assets arrive at the Planner's broker/dealer, what happens?
They are invested according to the financial plan.