Financial Planning
The process of identifying financial goals and creating strategies to achieve them
What is financial planning?
The age most individuals begin collecting Social Security retirement benefits
What is age 62?
Type of insurance that replaces income if you cannot work due to illness or injury
What is disability insurance?
This investment vehicle pools money to buy a diversified portfolio of securities
What is a mutual fund?
This factor determines how much risk a client can actually afford to take
What is risk capacity?
A retirement account that offers tax-free qualified withdrawals
What is a Roth IRA?
Type of insurance policy that pays a benefit upon the death of the insured
What is life insurance?
This risk refers to price changes caused by overall market movements
What is systematic risk?
This concept explains why two clients with the same income need different plans
What is individual circumstances?
This income source adjusts for inflation automatically
What is Social Security?