Questions from Personal Finance

Q: Describe some similarities and differences between a financial planning practitioner and a

Describe some similarities and differences between a financial planning practitioner and a physician.

Q: Why is integration so important in financial planning?

Why is integration so important in financial planning?

Q: A client provides a current balance sheet to the financial planner during

A client provides a current balance sheet to the financial planner during the initial data gathering phase of the financial planning process. This financial statement will enable the financial planner...

Q: A cash-basis taxpayer includes income from a service business when

A cash-basis taxpayer includes income from a service business when a. The services are performed. b. The client is invoiced for the services. c. The client’s check is deposited in the bank. d. The cli...

Q: The Moores recently found out that they can reduce their mortgage interest

The Moores recently found out that they can reduce their mortgage interest rate from 12 percent to 8 percent. The value of homes in their neighborhood has been increasing at the rate of 7.5 percent an...

Q: A young couple would like to purchase a new home using one

A young couple would like to purchase a new home using one of the following mortgages: Mortgage no. 1: 10.5 percent interest with 5 discount points to be paid at time of closing Mortgage no. 2: 11.5 p...

Q: A CFP® professional meets with two new clients who would like

A CFP® professional meets with two new clients who would like advice about their mortgage. In the review, the CFP® professional finds that their essential expenses exceed their income. Mortgage rates...

Q: Marcia had a choice of two washing machines of equal performance.

Marcia had a choice of two washing machines of equal performance. One cost $400 and had a present value (PV) of $230 in savings over having clothes done through an outside service. The second cost $60...

Q: Stock prices adjust rapidly to the release of all new public information

Stock prices adjust rapidly to the release of all new public information.” This statement is an expression of which one of the following ideas? a. Random walk hypothesis. b. Arbitrage pricing theory c...

Q: If the client needs to accumulate wealth but is risk-averse

If the client needs to accumulate wealth but is risk-averse, which of the following is the most crucial action the planner must take to have the client achieve the goal of wealth accumulation? Advise...