What is the primary goal of a financial needs analysis?
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It helps determine a client's current and future financial requirements.
Which of the following is typically included in a financial needs analysis?
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Income, liabilities, and goals are essential elements.
Why is risk profiling important in financial planning?
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It ensures investment strategies align with the client’s risk tolerance.
What is the role of budgeting in financial planning?
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Budgeting helps control expenses and reach financial objectives.
When should a financial plan be reviewed?
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Plans should be reviewed periodically or when major life events occur.
What is the benefit of setting SMART financial goals?
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SMART goals are clear and achievable, aiding effective planning.
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What is included in a net worth calculation?
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Assets minus liabilities equal net worth.
Which financial product is suitable for emergency savings?
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Savings accounts provide liquidity and low risk.
How does inflation affect financial planning?
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It reduces future purchasing power and must be considered in planning.