The Big Picture
This professional helps individuals and organizations manage their finances, including investments, savings, and retirement planning
What is a financial planner?
An individual balance sheet illustrating assets, liabilities, and net worth on a specific date
What is a personal statement of financial position?
This form of business has only one owner which had unlimited liability for the business activities
What is a sole proprietorship?
This debt repayment strategy focuses on paying off debts with the highest interest rates first to minimize total interest paid
What is the Debt Avalanche method?
Calculated by the Monthly Debt Payments divided by Gross Monthly Income
What is the debt to income ratio?
Your financial planner may urge you to have one of these in case you have any unexpected expenses or financial emergencies
What is an emergency fund?
This is the primary objective of buying an automobile vs. leasing
What is ownership?
This form of business has flow-through taxation, however the owners have unlimited liability
What is a partnership?
According to this personal finance expert, the motivational aspect of seeing debts disappear one by one is a critical element of the debt snowball method
What/Who is Dave Ramsey?
This type of loan can change the APR during the life of the mortgage
What is ARM?
This measure of a person's ability to pay off debt is based on factors such as payment history, utilization, and length of credit history
What is a credit score?
History of timely payments and total amount owed make up 65% of this
What is a FICO score?
This form of business is characterized by its limited liability to shareholders, but is subject to double taxation
What is a C corporation?
This is the effect described when using the debt avalanche method, characterized by a disciplined approach to tackle high-interest debt first
What is delayed gratification?
The fee that must be made when a down payment is less than 20%
What is PMI?
The goal of this process is the development and communication of recommendations. It has 7 steps; engage, recommend and implement are three of the steps.
What is the personal finance planning (PFP) process?
This Act provides victims of identity theft the legal right to challenge incorrect information and provides consumers the right to see their credit reports
What is the Fair Credit Reporting Act?
The form of business that is eligible for the dividends received deduction
What is a C corporation?
This term describes a method where you transfer balances from higher-interest debts to a new account with a lower interest rate
What is a low-rate balance transfer?
If a fraudulent charge is found on a debit card within 2 days, this is the $ amount of the consumer's liability
What is 50 dollars?
This financial tool may be recommended by a financial planner that helps individuals track income and expenses to manage their spending and saving
This is when, after a specified period, the payment required by the borrower increases significantly
What is a balloon payment?
To have less than 100 shareholders that are citizens or legal residents is a requirement of this form of business
What is an S Corporation?
This concept involves adjusting the interest rate on balance transfers to temporarily lower the cost of existing debt
What is an introductory or promotional interest rate?
This is the first phase in the Personal Financial Planning Process
What is establish and define client-partner relationship?