Planning Beginner: Using Financial Planners

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1.
Within certain limits, a stockbroker can offer financial planning advice.
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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.
The last part of the financial planning process is _______.
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Evaluating the success of your plan. Once the recommendations of your plan are carried out, the last step is to monitor it.
3.
Financial planners who are compensated only by commissions are not objective, and their advice is not reliable.
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False. Planners have an ethical obligation to give objective advice regardless of how they are compensated. However, to be clear about what you are paying, you should inquire about the method of compensation.
4.
If you are charged money for stocks that you buy from your financial planner who is also a licensed stockbroker, that charge is called _______.
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A commission. Commissions are charged when you buy or sell a stock.
5.
Investment advisers are registered at the national level only.
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False. They may be registered at the state level instead, depending upon the amount of assets they manage.