Exam 1: Overview of a Financial Plan

Which of the following goals would be easiest to measure?

Goals with a time frame of between one and five years are classified as

As a result of the increased estate tax exemption limits enacted with the 2018 Federal income tax law changes, it is no longer necessary for a family to do estate planning.

The major source of cash outflow for most people is the income they receive from employers.

Use the following description of terms to answer the matching questions below: A) forecasting future expenses and savings B) uncertainty on a potential return on an investment C) what you own D) determining how much money you should set aside for retirement E) what you owe F) decisions regarding how much money to hold in liquid form and how to allocate funds among short term investments G) determining how your wealth will be distributed before or upon your death H) current value of what you own minus what you owe I) source of current information about a variety of topics J) access to funds to cover any short-term cash deficiencies -money management

The financial crisis of 2008-09 affected the financial position of individuals in all of the following ways, except which of these?

Which of the following would be a long-term goal?

Use the following description of terms to answer the matching questions below: A) forecasting future expenses and savings B) uncertainty on a potential return on an investment C) what you own D) determining how much money you should set aside for retirement E) what you owe F) decisions regarding how much money to hold in liquid form and how to allocate funds among short term investments G) determining how your wealth will be distributed before or upon your death H) current value of what you own minus what you owe I) source of current information about a variety of topics J) access to funds to cover any short-term cash deficiencies -liabilities

An understanding of personal finance is not necessary to judge the quality of advice that a financial adviser may give.

Use the following description of terms to answer the matching questions below: A) forecasting future expenses and savings B) uncertainty on a potential return on an investment C) what you own D) determining how much money you should set aside for retirement E) what you owe F) decisions regarding how much money to hold in liquid form and how to allocate funds among short term investments G) determining how your wealth will be distributed before or upon your death H) current value of what you own minus what you owe I) source of current information about a variety of topics J) access to funds to cover any short-term cash deficiencies -assets

The act of determining how wealth will be distributed before or upon death is

Which of the following could save a smaller proportion of their earnings to achieve the same level of wealth as the others?

On which of the following Web sites should you question the accuracy of the information provided?

Retirement planning should begin

Budgeting helps set goals by estimating ________ on a monthly basis to determine how much to save and spend.

Josh has decided to take a course at the local community college that could help him get a promotion at work. The course begins at 5 p.m. and goes until 9 p.m. on Monday nights. Josh normally works until 5 p.m. each day, but because of the drive time to the community college, he will need to leave work at 3 p.m. on class days. Josh currently earns $18.50 per hour. His employer contributes 10% of Josh's gross earnings to a 401(k) retirement plan. If the class meets 16 times, what is Josh's total before-tax opportunity cost for the class?

Which of the following is not a way that insurance is designed to protect your wealth?

By establishing high and unrealistic financial goals, you will probably

In addition to the text, Web sites and financial magazines are good sources for help in financial planning.

Which of these statements is true with regards to the 2008-2009 financial crisis?