Financial Planning Foundations

What is the process of creating a detailed plan for managing income and expenses?

• Savings

• Investments

• Budgeting

• Risk Management

What is money set aside from income for future use or emergencies?

• Budgeting

• Investments

• Savings

• Asset Allocation

What is the allocation of funds into various assets with the goal of generating income or capital appreciation?

• Risk Management

• Retirement Planning

• Investments

• Estate Planning

What is the practice of identifying, assessing, and mitigating potential financial risks?

• Asset Allocation

• Risk Management

• Tax Planning

• Emergency Fund

What is the strategic distribution of investments among different asset classes to balance risk and return?

• Retirement Planning

• Asset Allocation

• Tax Planning

• Diversification

What is the process of setting aside funds and creating strategies for a financially secure retirement?

• Estate Planning

• Retirement Planning

• Budgeting

• Savings

What is planning for the distribution of assets and wealth after death?

• Tax Planning

• Estate Planning

• Risk Management

• Investments

What is the practice of optimizing financial affairs to minimize tax liabilities?

• Tax Planning

• Asset Allocation

• Budgeting

• Savings

What is a readily accessible savings reserve set aside to cover unexpected expenses or emergencies?

• Emergency Fund

• Retirement Planning

• Debt Management

• Wealth Accumulation

What are specific, measurable objectives that guide financial planning?

• Financial Goals

• Compound Interest

• Net Worth

• Diversification