Cases

I believe there can only be only a few general scenarios that can be thrown at a financial planner without getting into very specific case. I will work on these scenarios in order to prepare myself to the things that might come up on the exam.

The Inheritor

This case involves a person who receives a lump sum from an inheritance or as a beneficiary. The age can vary from a young professional to a middle aged couple to a widowed spouse. What strategies would you employ for a person who receives a large sum of money and give examples how this would change if the person were a young person, middle-aged, or widowed spouse.

The Middle-Aged Couple

This case involves a couple in their 30s or 40s that are starting to think how they are going to retire. They may or may not have children dependents that need education planning. They may or may not have older parents that need estate planning.

The Millionaire

In this case, a wealthy client seeks your services. You will need to design a comprehensive financial plan for a wealthy individual that seeks to protect their wealth, grow their wealth conservatively, while providing a source of income. More than likely a technical investment module is needed in the financial plan, as well as an in-depth tax planning strategy.

The About-to-Retire Grandparents

For this scenario, an elderly couple approaches you for financial planning services. The husband is age 65 and the wife is age 63. They have accumulated a nice sized nest egg and are asking if they are ready to retire. What qualifications would you use in order to determine if a couple was ready to retire?

The Debtor

A 40-year old person seeking your services is a person who has over $20,000 of various debt not including the home mortgage of $200,000. The person makes $75,000 a year, has no savings, and has fallen into the debt trap. Help him get on track again by providing him with a financial plan to get out of debt and maintain an emergency fund with a plan for retirement as well.

The Divorcee

A woman has come seeking for your services who just came out of a divorce. She has never worked before and just started working part-time at a department store making $15,000 a year. She has no debt and has taken custody of her two children who are 5 and 7 years old. She has a bachelors degree in liberal arts, but has never used it. How would you advise such a client in this scenario? How would your advice change if the divorcee received also a $1.2 million house with $400,000 left on the mortgage?

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License