Wealth Management Exam – Portfolio Management, Tax Planning, Retirement & Estate
Strategy Mock Exam
wealth management - correct answer ✔✔efforts by a wealth manager focused on helping
clients achieve their life goals through the proper management of their financial resources.
required to know your client
wealth management efforts - correct answer ✔✔holistic and customized
results of wealth management - correct answer ✔✔measured by the success of a client meeting
their life goals
money managers - correct answer ✔✔do not know their clients or have much insight into their
life. success is measured against other managers or market index
know your client - correct answer ✔✔all relevant information about a client must be known in
order to ensure that the registrant's recommendations are suitable.
clients - correct answer ✔✔-find out their goals
-see if goals are attainable
-determine financial position
-create a cash flow statement
-determine how much the client can save
-create a budget and plan to manage debt
-find if their money is legal money
debt - correct answer ✔✔-debt should be used to purchase appreciating assets or a short term
stop gap
, -should focus on clearing debt on depreciating assets
periodic review - correct answer ✔✔schedule regular review meetings with client to determine
if client is sticking to the plan or determine if there have been any significant changes
ethical planner - correct answer ✔✔-certified CFP or CFA
-selects products in best interest of client without regard to commission
-flat fee financial planner rather than payment from commission
wealth management team - correct answer ✔✔-financial planner
-insurance broker
-accountant
-attorney
-trust officer
high net worth clients - correct answer ✔✔have a wealth management team and use portfolio
managers to maximize their investment return
investment policy statement - correct answer ✔✔comprised of:
-statement of investors objectives
-statement of investor constraints or limitations
-financial plan to meet the investors objectives and allocation of investment resources
-schedule to monitor the performance of the financial plan
4 areas of wealth management - correct answer ✔✔-client relationship
-client profile
-wealth management investment policy
Strategy Mock Exam
wealth management - correct answer ✔✔efforts by a wealth manager focused on helping
clients achieve their life goals through the proper management of their financial resources.
required to know your client
wealth management efforts - correct answer ✔✔holistic and customized
results of wealth management - correct answer ✔✔measured by the success of a client meeting
their life goals
money managers - correct answer ✔✔do not know their clients or have much insight into their
life. success is measured against other managers or market index
know your client - correct answer ✔✔all relevant information about a client must be known in
order to ensure that the registrant's recommendations are suitable.
clients - correct answer ✔✔-find out their goals
-see if goals are attainable
-determine financial position
-create a cash flow statement
-determine how much the client can save
-create a budget and plan to manage debt
-find if their money is legal money
debt - correct answer ✔✔-debt should be used to purchase appreciating assets or a short term
stop gap
, -should focus on clearing debt on depreciating assets
periodic review - correct answer ✔✔schedule regular review meetings with client to determine
if client is sticking to the plan or determine if there have been any significant changes
ethical planner - correct answer ✔✔-certified CFP or CFA
-selects products in best interest of client without regard to commission
-flat fee financial planner rather than payment from commission
wealth management team - correct answer ✔✔-financial planner
-insurance broker
-accountant
-attorney
-trust officer
high net worth clients - correct answer ✔✔have a wealth management team and use portfolio
managers to maximize their investment return
investment policy statement - correct answer ✔✔comprised of:
-statement of investors objectives
-statement of investor constraints or limitations
-financial plan to meet the investors objectives and allocation of investment resources
-schedule to monitor the performance of the financial plan
4 areas of wealth management - correct answer ✔✔-client relationship
-client profile
-wealth management investment policy
