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1.
Within certain limits, a stockbroker can offer financial planning advice.
True. Though they don't enjoy the same advice-giving privileges as registered investment advisors, they are allowed to give some advice, within guidelines.
2.
People who are not registered as investment advisers can legally give investment advice.
True. However, they cannot legally be paid for it.
3.
Your financial planner, who is also a licensed stockbroker, receives 2 percent of the amount invested in a mutual fund from the mutual fund company. This is known as _______.
A commission. Some planners who are also licensed insurance agents, stockbrokers, or financial advisors get paid by receiving a percentage of what you invest from the underwriter or investment company.
4.
Financial planners must act in their clients' best interests when working with them.
True. Although this is a generally accepted notion, some planners still do not act in their clients' best interest. That's why it is best to ask a lot of questions before hiring them.
5.
At what point in the process of working with a financial planner do you establish the goals you are trying to meet?
In the beginning. Setting your goals must be done at the beginning. Otherwise, your planner won't know what kind of plan to craft.