Exam 21: Integrating the Components of a Financial Plan

Which of the following key documents should not be kept in a safety deposit box?

Investing in stocks of large, well-known firms may enhance your liquidity, but typically these investments do not generate as high a return as stocks of smaller firms.

Use the following two columns of items to answer the matching questions below: -safety deposit box

Which of the following will increase your net worth over time?

You should make investments only after you have sufficient liquidity and sufficient insurance to protect your existing assets.

Use the following two columns of items to answer the matching questions below: -household assets A)planning for insurance, investing, financing, and retirement B)amounts owed that are due in less than one year C)cash, checking account, and money market account D)stocks, bonds and mutual funds E)home, car, furniture F)assets less liabilities

As time passes, your financial position and goals are likely to change so you will need to revise your financial plan.

A home equity loan may do all of the following, except

There is a cost/benefit relationship for insurance protection which means you could be under-insured or over-insured.

If you are on a limited fixed income, you should not invest in

Name three ways to protect and maintain your wealth and assets and maintain your standard of living.

Which of the following does not increase your net worth?

What is the disadvantage of investments in retirement accounts compared to other investments?

Liquid assets usually generate

________ is a means of protecting your assets and income.

If you save monthly for retirement, which of the following would be used to determine how much you would ultimately have in your retirement account?

Budgeting allows you to forecast how much money you will have at the end of each month so that you can determine how much you will be able to invest in assets.

Use the following two columns of items to answer the matching questions below: -investments A)planning for insurance, investing, financing, and retirement B)amounts owed that are due in less than one year C)cash, checking account, and money market account D)stocks, bonds and mutual funds E)home, car, furniture F)assets less liabilities