Exam 6: Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Discuss how financial planning principles will help you solve the following challenges. a)Getting married sooner than expected b)Starting a family c)Having a high-paid job that causes ongoing stress d)Having to change careers

The first component in creating a financial plan is

Which of the following investments achieves the greatest diversification?

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

Which of the following accounts offers tax deferral,tax sheltering,and tax deduction for contributions?

Debt is dangerous and should be avoided at costs.

Some large well-known firms pay no dividends,but most do.

What is meant by the financing trade-off?

Stocks of small firms are more volatile than those of large firms and might not be liquid.

No financial plan is complete if it does not include a will.

What are four types of financial investment accounts and indicate the likely purposes they would have in your financial plan?

Trust agreements in financial plans are normally are used for

There are only three ways to get funds from your RRSP without paying tax on 100 percent of the withdrawal: the HBP,LLP and RRIF.

A disadvantage of paying off your mortgage with all your remaining liquid funds is that

It would be advisable to make additional loan payments if the interest rate is eight percent,rather than investing in short-term interest-bearing securities offering four percent.

To budget for savings or retirement,you need positive cash flows.

Which of the following statements about insurance is true?

Disability insurance protects your

Even though insurance costs reduce your cash flow,insurance could have a larger impact on your net worth than its cost.

Which of the following should you do first?