Jim and Andrea would like a planner who will look at all the important areas of their finances, including risk management, insurance, investments, taxes, retirement, and estate planning. This would be an example of A) detailed financial planning. B) lifestyle financial planning. C) targeted financial planning. D) comprehensive financial planning.

Which of the following statements is an example of a well-defined goal? A) Establish an emergency fund of $10,000 B) Save for a down payment on a house three years from now C) Save $25,000 to start a business five years from now D) Save for a child's college education 10 years from now

What information would be useful for a planner when creating a personal financial plan? Credit card number Copies of tax returns Insurance coverages Trust document A) I and II B) II, III, and IV C) I, II, and III D) III and IV

Which of the following represents a financial planner's fundamental duty of good faith to act in the best interest of the client? A) Fiduciary duty B) Duty to consult C) Duty to disclose D)

Duty to keep current Identifying insufficient insurance coverage would be accomplished in which of the following steps of the financial planning process? A) Analyzing the client's current course of action and potential alternate course(s) of action B) Developing the financial planning recommendations C) Monitoring progress and updating D) Understanding the client's personal and financial circumstances

Larry deposited $135,000 in an account earning 13% interest, compounded quarterly. If the amount is left to accumulate, how much will the account be worth at the end of 35 years? (Round answer to the nearest dollar.) A) $5,339,250 B) $413,510 C) $9,729,248 D) $11,883,441 Danielle would like to make a $10,000 down payment on a home in four years.

How much will she need to invest now in a fund earning 10.5% annual interest, compounded monthly, to have $10,000 in four years? (Round your answer to the nearest dollar.) A) $6,707 B) $6,169 C) $6,582 D) $7,096

Alan deposited $17,000 in an account. Interest on this account is compounded monthly. Today, seven years later, the account balance is $33,150. What is the average annual interest earned on this investment? (Round your answer to the nearest tenth of a percent.) A) 8.0% B) 9.6% C) 10.0% D) 51.3%

Daveon is considering a loan from a local bank to finance a car purchase. The loan features an 8% annual rate with a repayment term of three years (36 months). Interest is compounded monthly. What payment would be required at the end of each month if the amount financed is $16,000? (Round your answer to the nearest dollar.) A) $1,264 B) $501 C) $498 D) $395 When making rate of return assumptions for a client's goal, a planner should use A) whatever rate of return the client wants. B) current market rates. C) an aggressive rate of return to achieve the goal more easily. D) a conservative rate of return.

Miguel is meeting with his clients, Connor and Sara, to discuss their goals. Sara advises Miguel one of her goals is installing a pool and outdoor kitchen in the couple's backyard next year, and Connor folds his arms and bites his lip. What is the best action for Miguel to take next? A) Get more details regarding the new construction. B) Recommend how Connor and Sara can pay for the new construction. C) Ask Connor and Sara if they have any other goals. D) Ask Connor if the new construction is a mutually agreed-upon goal.

The marital deduction used in the estate settlement for married decedents provides that A) an unlimited amount of property may be transferred between spouses to avoid tax on the estate of the surviving spouse at death. B) an unlimited amount of property may be transferred between spouses to avoid tax on the estate of the first spouse to die. C) a limited amount of property may be transferred between spouses to avoid tax on the estate of the surviving spouse at death. D) a limited amount of property may be transferred between spouses to avoid tax on the estate of the first spouse to die.

What is a characteristic of property ownership in tenancy by the entirety? A) Ownership may exist only between spouses. B) Interests in the property may be unequal. C) Ownership may exist among three or more individuals. D) Rights of survivorship may be terminated at the wish of one owner.

Which of these statements most accurately describes a revocable living trust? A) Its terms can be altered. B) Substantial funding occurs at incapacity. C) It is created under an individuals will. D) It reverts back to the creator after a specific period.

Which of the following is an example of gift splitting under the federal gift tax rules? A) A mother gives $30,000 to her three children, split equally among them. B) Two uncles give a collective gift of $20,000 to their niece. C) A husband gives $20,000 to a friend; the husband's wife agrees to treat the gift as if she made half of the gift. D) A grandfather gives $30,000 to his grandson directly; the grandson's parents agree to treat one-third of the gift as if made by each one of them directly.

Which of the following techniques regarding health care decisions is used to plan for incapacity? A) A will B) Power of appointment trust C) Bypass trust D) Durable power of attorney On the cash flow statement, the premium expenditure for whole life insurance is considered A) a fixed outflow. B) a variable expense. C) an asset based on its cash value. D) a form of protection against death.