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1.
Once you have made a financial plan, _______.
You must review it and change it if necessary. Plans are not set in stone, and neither are they self-correcting; you must revise them over time.
2.
Good financial planning is methodical in nature.
True. It uses a set of measurable, defined procedures to create a picture of your financial life.
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.
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.
5.
Which step of financial planning typically calls for creating financial statements?
Analyzing and evaluating your financial status. This is the stage where you draw up a picture of your financial status based upon data gathered previously.