12/1/23, 10:05 AM IFIC - CHAPTER 4 Getting to Know the Client Flashcards | Quizlet

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IFIC - CHAPTER 4 Getting to Know the Client

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Terms in this set (20)

Which life-cycle stage is distinguished by a lack of Family Commitment Years

liquidity?

Identify a characteristic of the life-cycle hypothesis In stage 4, clients are generally more risk averse than in stage 3.

Determine the life-cycle stage of a client that has a Nearing Retirement.

substantial investment portfolio with little in the way
of day-to-day liquidity requirements.

Determine the life-cycle stage of a client who has Mature Earning Years.
successfully planned for medium term goals and
has a new focus on achieving long term goals

The Financial Planning Pyramid; Financial Products Commodities

for: Aggressive Investments

The Financial Planning Pyramid; Financial Products Insurance

for: Security

The Financial Planning Pyramid; Financial Products Debentures

for: Conservative Investment

The Financial Planning Pyramid; Financial Products IPO

for: Very Aggressive Investment

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12/1/23, 10:05 AM IFIC - CHAPTER 4 Getting to Know the Client Flashcards | Quizlet

Identify the criteria that a mutual fund sales The client's financial goals and objectives
Learn
representative usually uses to evaluate investment
suitability for a client.

Assessing clients' current financial and personal situation, constraints, goals and
Select the statement that correctly describes the
objectives and making recommendations through a financial plan to achieve these
financial planning approach
goals and objectives

Choose a key factor for an advisor for gaining a Advisors have to explain how specific investments will help clients achieve their
client's trust goals and what type of risks these investments carry

- The client's personal circumstances, including level of investment knowledge and

Select the information required under the know tolerance for risk.
your client rule when opening a new account for a - The client's financial circumstances, including annual income and net worth.
client - The client's financial goals, objectives and time horizon.
- The client's age.

I need 65% of my current income in 15 years (A typical target for a retirement goal
Indicate the investment goal that is most likely to
states how much pre-tax income should be available for a given number of years
result in an orderly financial plan
following retirement)

Identify the decision a mutual fund salesperson Choosing Money Market over Fixed income mutual funds
would make for choosing a mutual fund for a client
with a short time horizon

Determine the life-cycle stage of a client with lower Retired

risk tolerance but an increase in focus on estate
planning and wealth transfer

Determine the financial consideration that would be Insurance/Will

found at the bottom of the Planning Pyramid

Determine the financial consideration that would be Stocks/Bonds

found at the middle of the Planning Pyramid

Determine the financial consideration that would be Art

found at the top of the Planning Pyramid

Which of the following represents one of the main Capital gains

reasons why a client would invest in an equity
growth mutual fund?

The weight of various securities classes within a Asset Allocation

client's portfolio is best described as which of the
following?

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