If you are a student of financial planning you should know the following. Just find out how many of these statements are true and how many are false…..
- Financial planning is perhaps difficult for a client to do it himself because of the personal bias that might set in.
- Procrastination is the enemy of compounding.
- People maintain personal accounts because it is required by law.
- More frequent the compounding, the better it is for you as an investor.
- More frequent the compounding; the better it is for you as a borrower.
- It is all right to delay investing, because you can always make up for the shortfall by increasing the investing amounts. Of course yes, question is how much!!
- One of the impediments to financial planning is goal conflicts between husband and wife regarding the end use of money.
- Goals are dreams with a date.
- Goals are first classified into needs, wants and luxuries.
- Budgeting is the first step in the financial planning process.
- Credit card interest calculation is done on a monthly compounding basis.
- A financial planner can not assure that the client will reach all his financial goals.
- The financial planner and client agreement should be in writing.
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