The American College CFP HS300 – Chapter 1 T/F
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Data gathering in the financial planning process typically entails more than asking the client a series of questions in order to fill out a form.
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True
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The advisor's responsibility in the fifth financial planning domain is to see that the plan is implemented.
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False
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In its purest form, comprehensive financial planning is done with the managing advisor's entire compensation consisting of commissions from the sale of one financial product.
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False
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According to the single-purpose approach to financial planning, a life insurance agent who sells key person life insurance to the owner of a small business is engaged in comprehensive financial planning.
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False
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Every financial plan is developed around information gathered during the second step in the financial planning process.
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True
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Part of a financial advisor's responsibility is to motivate and assist the client in completing all of the steps necessary for full plan implementation.
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True
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In its purest form, comprehensive financial planning is performed for a client over a period of time.
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True
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A comprehensive financial plan should address all of the major planning areas as they relate to the client.
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True
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A comprehensive financial plan should be communicated to the client either orally or in a written report.
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False
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There are three distinct phases in an individual's financial life cycle.
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False
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The phase of the financial life cycle that an individual is currently in strongly influences the priority given to the goals for each of the planning areas.
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True
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One result of analyzing the strengths and weaknesses of a client's present financial status may be the need for the advisor to work with the client to revise the client's goals and objectives.
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True
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Comprehensive financial planning services have been available to most Americans in the lower and middle income brackets for more than 50 years.
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False
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One result of market volatility of the past decade was an increase in the sophistication of planners.
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True
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A survey conducted by the CFP Board in 1999 identified estate planning as the most popular financial planning specialization engaged in by financial planning advisors.
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False
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A trend creating opportunities for financial planning advisors is the falling median age of Americans.
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False
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A trend creating opportunities for financial planning advisors is that financial conditions in the American economy are becoming more stable.
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False
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According to a survey conducted by the CFP Board, the main reason people begin financial planning is to generate retirement income.
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True
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According to a study of baby boomers, only 10 percent of them will continue to work during retirement.
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False
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An obstacle preventing consumers from gaining control of their financial destinies is their tendency to spend up to or beyond their incomes.
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True
