General Principles of Financial Planning

Question 1

What does EGADIM stand for?

Answer 1

Establish, Gather, Analyze, Develop, Deliver, Implement, Monitor

Question 2

Establish Key Points

Answer 2

Conflicts of interest, responsibilities, disclosures

Question 3

Gathering key points

Answer 3

Evaluate the client’s risk exposures (longevity, economic, liability, healthcare)

Question 4

Developing key points

Answer 4

Interdepence

Question 5

Communicating key points:

Answer 5

Obtain feedback and revise as appropriate, Provide documentation of plan recommendations and any additional disclosures

Question 6

Monitor key points:

Answer 6

make recommendations to accommodate changed circumstances, review scope of work and redefine engagement as appropriate, provide ongoing support

Question 7

Disclosures required to be made in writing:

Answer 7

Engagement letter, investment advisory contract, ADV disclosures

Question 8

What financial aid is needs based?

Answer 8

Grants and subsidized loans

Question 9

What inflation rate is used during the first two steps of a retirement needs calculation?

Answer 9

The college inflation rate