Fundamentals of Financial
management 13e Van horne (Test
Bank)
The Practice Standards - ANS-Seek to establish the level of professional
practice
... [Show More] expected of certificants engaged in financial planning
Purpose of practice standards - ANS-Establish the level of professional
practice that is expected
Advance professionalism in the practice of financial planning
Enhance the value of personal financial planning
Relevant Elements of the Client's personal and financial circumstances -
ANS-Develop goals
Manage assets and liabilities
Provide for educational needs
Achieve financial security, or preserve or increase wealth
Identify tax considerations
Prepare for retirement, or address estate and legacy matters
Practice Standards for the Financial Planning Process - ANSUnderstanding the Client's Personal and Financial Circumstances
Identifying and Selecting Goals
Analyzing the Client's current course of action and potential alternative
courses of action
Developing the Financial Planning Recommendations
Presenting the Financial Planning Recommendations
Implementing the Financial Planning Recommendations
Monitoring Progress and Updating
Private Censure - ANS-An unpublished written reproach
Public Letter of Admonition - ANS-A publishable written reproach
Suspension - ANS-No less than 90 days, and no greater than 5 years
If less than 1 year, reinstatement is automatic
The Financial Planning Process - ANS-1. Understanding the Client's
Personal and Financial Circumstances
2. Identifying and Selecting Goals
3. Analyzing the Client's Current Course of Action and Potential
Alternative Courses of Action
4. Developing the Financial Planning Recommendations
5. Presenting the Financial Planning Recommendations
6. Implementing the Financial Planning Recommendations
7. Monitoring and Updating Responsibilities
Understanding the Client's Circumstances (Qualitative) - ANS-Education
Goals
Retirement Goals
Employment Goals
Savings Goals
Risk Tolerance
Charitable Goals
Their general attitude towards spending
Their general health and life expectancy of the Client
Understanding the Client's Circumstances (Quantitative) - ANS-The
family (age, health, education, income, financial competence, and any
special situations)
The insurance portfolio (premiums, amount of coverage)
Banking and investment information (statements)
Taxes for the last 5 years
Retirement and Employee Benefits (benefit statements [Show Less]