Financial Planning

STATE which of the 6 steps to financial goal planning is represented in this scenario: "George is using the SMART Goals acronym to plan out the future."

• Determining Your Financial Situation

• Developing Your Goals

• Identifying Your Options

• Evaluate Alternatives

• Create and Use an Action Plan

STATE which of the 6 steps to financial goal planning is represented in this scenario: "Mary schedules a meeting with a financial adviser at E*Trade to discuss her portfolio."

• Determining Your Financial Situation

• Developing Your Goals

• Identifying Your Options

• Evaluate Alternatives

• Create and Use a Plan of Action

STATE which of the 6 steps to financial goal planning is represented in this scenario: "Craig decides it's time to expand his newspaper by adding on new staff members."

• Determining Your Financial Situation

• Developing Your Goals

• Identifying Your Options

• Evaluate Alternatives

• Create and Use a Plan of Action

STATE which of the 6 steps to financial goal planning is represented in this scenario: "Susan begins compiling a detailed summary of her finances."

• Determining Your Financial Situation

• Developing Your Goals

• Identifying Your Options

• Evaluate Alternatives

• Create and Use a Plan of Action

STATE which of the 6 steps to financial goal planning is represented in this scenario: "Marissa, looking to begin shopping for a car, begins writing out what she NEEDS in her car and and she would WANT in her car."

• Determining Your Financial Situation

• Developing Your Financial Goals

• Identifying Your Options

• Evaluate Alternatives

• Create and Use a Plan of Action

Which of the following scenarios would be an example of liquidity risk?

• Mr L buys a car for $54,000. 10 years later he can only sell it for $10,000 at most.

• Mr L gets fired. (Cuz really... it's only a matter of time.)

• Mr L puts his savings in the walls of his house. 30 years later it has lost it's value by 50%.

• Mr L gets a loan at 5% interest, which stinks since last year they were at 3% interest.

Which of the following scenarios would be an example of income risk?

• Mr L buys a car for $54,000. 10 years later he can only sell it for $10,000 at most.

• Mr L gets fired. (Cuz really... it's only a matter of time.)

• Mr L puts his savings in the walls of his house. 30 years later it has lost it's value by 50%.

• Mr L gets a loan at 5% interest, which stinks since last year they were at 3% interest.

Which of the following scenarios would be an example of inflation risk?

• Mr L buys a car for $54,000. 10 years later he can only sell it for $10,000 at most.

• Mr L gets fired. (Cuz really... it's only a matter of time.)

• Mr L puts his savings in the walls of his house. 30 years later it has lost it's value by 50%.

• Mr L gets a loan at 5% interest, which stinks since last year they were at 3% interest.

Which of the following scenarios would be an example of interest rate risk?

• Mr L buys a car for $54,000. 10 years later he can only sell it for $10,000 at most.

• Mr L gets fired. (Cuz really... it's only a matter of time.)

• Mr L puts his savings in the walls of his house. 30 years later it has lost it's value by 50%.

• Mr L gets a loan at 5% interest, which stinks since last year they were at 3% interest.

Which of the following best summarizes step 6 of the financial planning steps?

• Have a plan B

• Invest in bonds, not stocks

• Save in a bank, not a credit union

• Save in a credit union, not a bank.