FPQP (FINANCIAL PARAPLANNER QUALIFIED
PROFESSIONAL) EXAM QUESTIONS WITH
PASSED SOLUTIONS!!
Comprehensive Financial Plan Answer - covers almost all aspects of a personal's financial situation (including risk mamagenet, investment planning, tax, retirement, and estate planning) Targeted Financial Plan Answer - focus on a segment of individual's objectives.(ex - first home, elderly care, reducing tax burden) Goals should be... Answer - defined or definite Steps to setting financial goal Answer - 1. Purpose, 2. Timeframe, 3. Amount ("PTA") Personal financial planning is continuous or noncontinuous? Answer - Continuous
7 Steps of Financial Planning Process: Answer - 1. Understanding client's
personal and financial circumstances.
- Identifying and selecting goals.
- Analyzing the client's current course of action and potential alternatre
- Devleoping the financial planning recommendations.
- Presenting the financial planning recommendations.
- Implementing the financial planning recommendations. 1 / 2
course(s).
- Monitoring process and updating.
Two types of information:
(Step 1 - Understanding client's personal and financial circumstances) Answer
- Quantitative - "names and numbers"
- Qualititative - "lifestyle info"
- / 2
family profile, assets and liability, cash inflows/outflaws, insurance policy info, employee/pension plan, tax returns, retirement benefits
goals/objectives, health status, interests/hobbies, risk-tolerance level, changes in lifestyle, estate planning issues, money values, family relationships, planning assumptions "SWOT" Approach (Step 3 - analyze and evaluate) Answer - SWOT = Strenghs, Weaknesses, Opportunities, Threats Existing conditions are reviewed to identify strengths and weakenesses in client's total current financial situation. Identifying existing or potential problems that could impact the client's ability to achieve objectives.Emergency fund should be how much? Answer - 3-6 months expenses in emergency fund.Developing a plan means...