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

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

The best schedule for the order of the components of your financial plan would be

Loans restrict your spending or saving in future months and therefore can prevent you from achieving financial goals.

Insurance planning is the key to building your wealth over time.

An important consideration when applying for a loan is that

The first component in creating a financial plan is

Which of the following should you do first?

Paying off loans rather than making additional investments is appropriate when the expected return is higher than the interest rates on loans.

To monitor your financial plan, you should

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.

To increase your net worth, you should

Revising a financial plan

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

If you do not have a financial plan, you will not likely be able to

Which of the following is true?

The idea of having adequate insurance is to protect against events that could reduce your income or wealth.

Some retirement plans, such as RRSPs, are more liquid than other plans.

Which of the following assets will increase your liquidity?

You will know your financial plan is working when

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?