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1.
Tax planning is typically covered in a professional financial plan because _______.
Taxes take a big bite out of your money. Good financial planning takes advantage of legal tax avoidance to preserve as much of your wealth as possible.
2.
Which of the following is not one of the generally practiced steps in financial planning?
Spending your money. That is a step you do on your own, hopefully once your plan is safely in place.
3.
In order to work, financial planning requires that you _______.
Set goals. While the other choices may eventually be necessary, the only requirement is that you set some goals.
4.
Risk management is typically covered in a professional financial plan because _______.
Risk can destroy your wealth. That is why insurance is included in most financial planning.
5.
Good financial planning is methodical in nature.
True. It uses a set of measurable, defined procedures to create a picture of your financial life.