Podcast
Questions and Answers
In the Family Life Cycle and Personal Finance table, which stage has a high level of risk management and medium level of investment?
In the Family Life Cycle and Personal Finance table, which stage has a high level of risk management and medium level of investment?
What is characterized as a low level of debt management and medium level of investment in the Family Life Cycle and Personal Finance table?
What is characterized as a low level of debt management and medium level of investment in the Family Life Cycle and Personal Finance table?
Which division of FP Canada focuses on Competency and ethical standards?
Which division of FP Canada focuses on Competency and ethical standards?
What does QAFP™ stand for in the context of certification paths provided?
What does QAFP™ stand for in the context of certification paths provided?
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Which stage in the Family Life Cycle and Personal Finance table has a low level of retirement planning?
Which stage in the Family Life Cycle and Personal Finance table has a low level of retirement planning?
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What is a characteristic of Single, retired individuals in the Family Life Cycle and Personal Finance table?
What is a characteristic of Single, retired individuals in the Family Life Cycle and Personal Finance table?
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Which element of competency is NOT mentioned in the FPSC Elements of Competency list?
Which element of competency is NOT mentioned in the FPSC Elements of Competency list?
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'Older couple, children independent' in the Family Life Cycle and Personal Finance table is characterized by what regarding investment?
'Older couple, children independent' in the Family Life Cycle and Personal Finance table is characterized by what regarding investment?
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Which stage in the Family Life Cycle and Personal Finance table has a high level of budgeting?
Which stage in the Family Life Cycle and Personal Finance table has a high level of budgeting?
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What is highlighted as a high-level financial goal for 'Couple, retired' individuals in the Family Life Cycle and Personal Finance table?
What is highlighted as a high-level financial goal for 'Couple, retired' individuals in the Family Life Cycle and Personal Finance table?
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Study Notes
Financial Planning Goals
- Financial goals should be specific, measurable, achievable, relevant, and time-bound (SMART)
- Examples of financial goals:
- Dave wants to have $500,000 on June 30th, 2024
- Jill wants to save and invest 10% of her annual income every year, from now until she retires at 65
- Jeff wants to buy his son a car when he graduates at the end of the year
- Chris wants to cut his expenses by 10% per month
Financial Planning Process
- Determine Financial Goals
- Identify Current Financial Situation
- Identify Alternatives
- Evaluate Alternatives (consider economic and life factors)
- Create and Implement a Financial Plan
- Re-evaluate and Revise the Financial Plan
Time Horizons
- Short term: within 1 year
- Intermediate term: 1 to 10 years
- Long term: more than 10 years
- Life stages also play a role in financial planning
Family Life Cycle Categories
- Single, Younger
- Couple, Younger, No Children
- Couple, Dependent Children
- Single, Dependent Children
- Older Couple, Children Independent
- Older Couple, Single
- Couple, Retired
- Single, Retired
Financial Planning Goals/Objectives
- Pay down debt
- Retirement
- Education savings
- Business start-up/expansion
- Travel
- New car/major purchase
- Elder care
- New house/renovation
- Saving for rainy day: Emergency Fund
- Recreational/vacation property
- Sabbatical
- Children's marriage
- Birthday/anniversary celebrations
- Creating an estate
Desires vs Goals
- Desires are general and vague, while goals are specific and achievable
- Examples of desires: "I want to be rich", "I want to be financially independent"
- Goals should be SMART (Specific, Measurable, Achievable, Relevant, Time-bound)
Financial Planning Industry
- FP Canada: Self-regulatory organization (SRO) with two divisions:
- FP Canada Standards Council division
- FP Canada Institute division
- Competency and ethical standards:
- CFP Competency Exams
- CFP Standards of Professional Responsibility
Certifications
- QAFP (Qualified Associate Financial Planner)
- CFP (Certified Financial Planner)
- Paths to certification: QAFP and CFP
- Competency exams and standards of professional responsibility
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on financial planning goals by identifying which scenario is not a financial planning goal. The quiz includes different financial objectives such as saving, investing, budgeting, and purchasing decisions.
