Exam 17: Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Now that you have completed the course, discuss in detail for each component of the plan what outside assistance from advisers you will need to make your financial plan a success.

Which of the following increases your net worth?

To invest in mutual funds of small stocks is to look for stable dividend income.

What are four types of financial investment balances that you should monitor?

In deciding how much to contribute to your retirement, which of the following should you ignore?

You will need to revise your financial plan periodically to

The purpose of insurance is to protect your

Financing does not allow you to make purchases now without having the full amount of cash on hand.

Even average earners can accumulate wealth by

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

If your budget forecasts that your expenses will exceed income, you should also forecast any surplus.

You can improve your income by making withdrawals from an RRSP to fund education so that you can apply for higher-paying jobs.

To monitor your financial plan over time, it is important to store finance-related documents in a safe and accessible place.

Liquid assets usually generate

Normally, you should use all of your liquid assets to pay off your loan.

Stocks of smaller firms are more volatile than those of larger firms and might not be liquid.

We should recognize how the components of our financial plan are independent of each other.

It is not possible to have too much insurance coverage.

Disability insurance protects your

You should not make investments after you have sufficient liquidity.