PFIN TEST
Which of the following planners combines both charging fees and collecting commissions?
Hybrid Planner
Choose the best definition for the "propensity to consume."
The percentage of each dollar on income spent on current needs rather than saving.
What is net worth?
Your money left after hypothetically paying off all your debt after selling all your assets
Financial goals should be
all of these
Your income is directly related to your
all of these
A good financial plan completed when one is in their 30s will typically last a lifetime.
f
Financial planning is necessary only if you earn a lot of money.
f
It is possible to draw up one financial plan that will work for most people.
f
Saving $3,000 for a large, flat-screen TV within the next 3 years is an example of a short-term goal.
f
The need for financial planning declines as your income increases.
f
Financial planning can help us to:
spend wisely.
A successful financial plan will be based on a person's goals.
t
Defining financial goals is an important first step in personal financial planning process.
t
Financial planning can improve your standard of living.
t
Financial planning is a continuing, life-long process.
t
Mutual funds are examples of financial assets.
t
Short-term goals include things one wants to achieve in a year or less.
t
The most effective way to achieve financial objectives is through financial planning.
t
Your personal value system will shape your attitude toward money and wealth accumulation.
t
Typically people with the lowest incomes tend to be
very young or very old
What is the average age people choose to retire at?
65
What is a realistic percentage of take-home pay that should be saved in order have a comfortable standard of living in the future?
10
When should you start saving for retirement?
As soon as possible, now!
What's an example of a intangible asset?
Bank Account
What does the IRA stand for
Individual Retirement Account
