The First Step of the Financial Planning Process Is to

question 75

Multiple Choice

The first step of the financial planning process is to

• A)develop financial goals.
• B)implement the financial plan.
• C)determine your current personal and financial situation.
• D)evaluate and revise your actions.
• E)create a financial plan of action.

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Definitions:

Proportional

Relating to a relationship between variables where they increase or decrease at the same rate.

Form 1040EZ

A simplified tax form used in the United States for individuals with straightforward tax situations, now replaced by the redesigned IRS Form 1040.

Married Filing Jointly

A filing status that allows married couples to file a single tax return together, which can affect tax rates and deductions.

Paid Tax Preparers

Professionals hired to advise on tax matters and prepare income tax returns; they must meet certain qualifications and adhere to regulatory standards.