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Final exam practice 1

Terms in this set (85)

Which of the following activities would be appropriate if you were establishing and defining the client-planner relationship or gathering information necessary to fulfill the engagement?
I. Collecting personal financial information
II. Inquiring about the number of dependents
III. Inquiring about the age or dates of birth of dependents
IV. Determining which stocks to purchase for the client's investment portfolio
I, II, and III
Which of the following CFP® certificants would likely be considered to be engaged in financial planning or the material elements of financial planning?
I. Lance, who reviews a life insurance sales brochure with his client, Arthur, and completes a variable life insurance application
II. Nadia, who conducts comprehensive data gathering regarding Jason's investments, life insurance, retirement plans, wills, and trusts and makes recommendations for him
II only
According to CFP Board Code of Ethics, Connor, a CFP® professional, is responsible for which of the following?
I. Acting in the client's best interests
II. Avoiding or disclosing and managing conflicts of interest
III. Acting with honesty, integrity, competence, and diligence
IV. Maintaining the confidentiality and protect the privacy of client information
I, II, III, and IV
Amanda, a CFP® professional, is enjoying an afternoon at her son's school playground when she is approached by Tracy, a fellow parent and teacher at a local elementary school. Their conversation covers specifics about Tracy's personal and financial situation, with emphasis on a recommended investment strategy for her 403(b) account. Amanda is aware that she is providing Financial Advice to Tracy. Identify the correct application of rules from the Code and Standards based on Amanda and Tracy's interaction.
Although only Financial Advice has been determined, Amanda must uphold her Fiduciary Duty and must follow the Code of Ethics.
Bill and Sophia have recently retired and want to travel to Europe and then volunteer for local mission work. They would also like to meet with Humphrey, their financial planner, to discuss charitable contributions they would like to make to these local missions. Humphrey should determine Bill and Sophia's life cycle phase to be
the distribution phase
Whitney is designing her new email template which will reflect her recent certification as a CFP® professional. Under her name, she has identified herself as a CFP™. In a tagline at the bottom of the template, she advertises herself as a "CFP® expert." According to CFP Board's guidelines regarding how the CFP®" marks may be used, which of the following is CORRECT?
I. Whitney has appropriately identified herself as a CFP™.
II. Advertising herself as a CFP® expert is prohibited by CFP Board.
II only
Maxine, age 57, would like to retire in 10 years. Currently, her debt is decreasing as her cash flow and net worth are steadily increasing. Based on Maxine's current financial life cycle phase, which of the following goals is she likely to have?
Long-term goals, such as investing for retirement
Blanca, a CFP® professional, has recently entered into a financial planning engagement with Simon. As his financial planner, which of the following are Blanca's roles?
I. Analyzing Simon's current financial status
II. Assisting Simon in implementing the financial plan
III. Helping Simon identify financial goals and objectives
I, II, and III
Candice has referred Rochelle, a CFP® professional, to her brother, Nelson. In their initial meeting, Rochelle explains how she can help Nelson develop a comprehensive financial plan. Which of the following would be Rochelle's roles in a client-planner relationship with Nelson?
I. Assisting Nelson in identifying his goals
II. Analyzing Nelson's current financial status
III. Recommending strategies that will meet Nelson's business goals
IV. Providing documentation Rochelle needs to complete the financial plan
I, II, and III
In 2012, the average cost of a new home in Oakville was $150,000. In 2014 the average cost rose to $210,000. Due to an economic downturn in 2017, the average cost of a new home fell to $185,000, and the reaction to the decreased cost was positive, even though the new average cost was higher than the 2012 average cost of a new home. This behavior is known as
anchoring
Recently, Fallon, an avid shopper, has heard from her friends that an investment in Shoes-2-You stock was a wise idea because the shoes sold are very stylish. Even though Fallon's financial planner has advised her that investing in this stock is a poor decision, she invests in it anyway. Her brother, Stanley, congratulates her on her investment because he feels it is a wise investment. Stanley considers himself to be an expert in investments. Unfortunately, he considers his expertise to be much greater than it actually is. In the past, Stanley has taken credit for any investment decisions that have positive returns but blames the economy when an investment does poorly. Considering Fallon's and Stanley's behavior, which of the following statements is CORRECT?
Fallon's behavior is an example of confirmation bias, Stanley's behavior is representative of overconfidence
Melissa has $8,000 in a savings account, which she has earmarked for an Australian vacation later this year. The roof of her house was damaged recently and it requires considerable repairs. Melissa does not want to spend the money in her savings account to make the repairs because she believes that money is for her upcoming vacation. Instead, she withdraws $4,000 from her traditional IRA to make the repairs. She has to pay income tax of $1,120 plus a penalty of $400 on the IRA withdrawal. This is an example of which of the following behaviors?
Mental accounting
Mark is meeting with a new client, Macy. It is important that Mark understand Macy's psychological ability to deal with uncertain outcomes includes risk tolerance, risk capacity, and risk perception. During what step in the financial planning process should Mark measure Macy's abilities?
Understanding Macy's personal and financial circumstances
Wendy, a CFP® professional, is meeting with her client, Chrissy, to discuss her goals. Chrissy advises Wendy that one of her goals is to take an expensive hiking trip in the Alps, something her mother and grandfather had done when they were young. She'd like to keep this tradition in her family. Wendy believes that, because of Chrissy's financial circumstances, this is not the best use of Chrissy's money. What should Wendy do to best serve her client, Chrissy?
I. Wendy should understand that expensive trips like hiking in the Alps is an important family tradition to Chrissy.
II. Wendy should consider the trip as one of Chrissy's goals and explain how such a goal would impact her overall financial plan.
III. Wendy should share her opinion with Chrissy and persuade her to abandon this as one of her goals.
IV. Because Wendy, as Chrissy's financial planner, does not feel taking the trip is a wise financial decision, she should not include it in Chrissy's financial plan as a goal.
I and II
In his financial planning practice, Frank allows his clients' goals and values to drive his relationships with them. He sees himself as a consultant. Frank's approach to financial counseling is known as
The strategic management approach
Which of these statements regarding the classical economics approach to financial counseling is CORRECT?
I. This approach features the use of a SWOT analysis.
II. This approach is based on the use of psychoanalytic theory such as Freudian or Gestalt theory.
III. Clients choose among alternatives based on objectively defined cost-benefit and risk-return tradeoffs.
IV. This approach believes that increasing financial resources or reducing financial expenditures results in improved financial outcomes.
III and IV
Which of the following statements regarding open-ended and closed-ended questions is CORRECT?
I. Planners should use as many open-ended questions as possible when developing client goals and expectations.
II. Closed-ended questions facilitate effective communication between the client and planner because they require the client to answer in her own words.
I only
Bernie is meeting with his clients, Mike and Alyssa, to define their goals. Mike tells Bernie that one of his goals is purchasing a hunting camp in two years and Alyssa shakes her head. What is the best action for Bernie to take next?
Ask Alyssa if the camp is a mutually agreed-upon goal
Which of the following statements regarding interpersonal communication between financial planners and their clients are CORRECT?
I. Mirroring is accomplished by imitating the client's body language or verbal style.
II. Body language can impact how clients receive and interpret messages more than any other type of communication.
III. Emotional intelligence includes the ability to recognize emotional expressions and select socially appropriate responses.
I, II, and III
Oscar and Kathryn have a net worth of $250,000 before each of the following transactions:
- Purchased $3,000 of appliances on credit
- Transferred $2,000 from their checking account to a personal savings account
- Paid off a credit card with a balance of $6,000 using a personal savings account
What is the net worth of Oscar and Kathryn after these transactions?
$250,000
Which of the following financial statements provides a snapshot of the client's net worth at any given point in time, usually at the end of a calendar year?
I. Personal tax return
II. Cash flow statement
III. Net worth statement
IV. Statement of financial position
III and IV
Which of the following statements regarding a financial planner's analysis of a client's cash flow statement is CORRECT?
I. The analysis of the client's cash flow statement can help the planner determine whether the client is living within his financial means.
II. The analysis of the client's cash flow statement helps determine the client's net worth, or total cash surplus, by tracking cash inflows and outflows over a period of time.
III. Typically, the financial planner will encourage the client to reduce the variable expenses reported on the cash flow statement.
I and III
You have gathered the following information from Edgar's financial statements:

Net income $75,000
Gross income $110,000
Total assets $190,000
Total debt $45,000
Consumer debt $20,000

Based on this information, which of the following statements is CORRECT?
I. Edgar's total debt ratio exceeds the generally recommended maximum.
II. Edgar's consumer debt ratio exceeds the generally recommended maximum.
Both I and II
Blake and Sarah have a monthly mortgage payments of $850 (principal, interest, taxes, and insurance [PITI]) on a mortgage balance of $95,000 on their home. They have an auto loan balance of $5,000, with monthly payments of $250. Additionally, they have a credit card balance of $2,000, on which they pay $225 each month. Blake and Sarah's net income for the past year was $35,000. Their gross income was $48,000.
Are Blake and Sarah using excessive amounts of debt?
No, because monthly house payments (PITI) are less than 28% of gross income and total monthly debt payments are only 33% of gross income
Which of the following are considered fixed cash outflows?
I. Clothing expenses
II. Mortgage payments
III. Insurance premiums
IV. Auto loan payments
II, III, and IV
After completing a budget with Peter, you have determined that he has $350 per month in surplus cash flow. He tells you he would like to use this amount to fund a college plan for Brooke. Based on the information provided, what should Peter do first?
Establish an emergency fund
Mickey has decided he needs to increase the balance of his emergency fund. Which of the following are ways Mickey can save for this purpose?
I. Cancel his audiobook subscription.
II. Choose a more economical cell phone plan.
III. Use an overdraft feature on his debit cards.
IV. Decrease the deductible on his automobile insurance policy.
I and II
Aaron, a financial planner, has advised Macy that she needs to increase her savings. What might you recommend as a good savings strategy?
I. Limit the number of lattes she purchases.
II. Use an overdraft feature on debit cards.
III. Increase her deductible on her car insurance policy.
IV. Limit her credit card purchases to those she can pay off in full in one year.
I and III
Over the years, Quinn has made timely payments on four of his credit card accounts, all which have balances near the available credit limits. He did pay off a fifth credit card account, which he had for 20 years, and immediately closed it. Which of the following statements regarding Quinn's credit score is CORRECT?
I. By immediately closing his long-standing account when it was paid off, Quinn likely decreased his credit score.
II. Having four credit card account balances near their available credit limits will in all likelihood adversely affect Quinn's credit score.
Both I and II
Craig is refinancing his current 7.5% 30-year fixed-rate mortgage for $150,000 into a new 5.75% 30-year mortgage for $150,000. How much is his new monthly payment and how much per month will he save on this payment?
New payment = $875.36, savings = $173.46
Which of the following actions would most likely help an individual improve their credit score?
Make the minimum payment on time each month
Which of the following statements regarding the decision to buy or lease a home are CORRECT?
I. The itemized tax deduction for mortgage interest is a benefit of home ownership.
II. A client who will be residing in the home for a short period of time should lease the home.
III. The lower the marginal income tax bracket, the greater the advantage of owning a home.
IV. Generally, more costs are associated with buying a home, especially if this arrangement is short term.
I, II, and IV
Paul and Carmen recently moved to the Gulf Coast. Paul is in the Secret Service and would like to live on the beach until he gets his next work assignment in three years. Paul and Carmen want to purchase a home; however, they expect to move for Paul's next assignment. Which of the following mortgages is best for Paul and Carmen if they want to keep their monthly mortgage payments to a minimum?
An adjustable rate mortgage with an interest rate cap
At the beginning of each year for the past 15 years, Betty, who is Angela and Avery's aunt, has put $5,000 into an account earning 5.5% annually for their benefit. How much is the account worth today and which process must take place to calculate the value?
$118,205.70; annuitizing
Frank purchased an antique table today for $30,000. Experts advised him the table will increase in value at a rate of 3% annually for the next six years. Approximately how much will the table be worth at the end of the sixth year if his expected return is achieved?
$35,822
Zach expects to receive $20,000 in eight years from his uncle Bradley. How much is this worth in today's dollars assuming a 6% after-tax interest rate, compounded annually?
$12,548
Charley invested $100,000 12 years ago. Today, it is valued at $250,000. What is the rate of return for Charley's investment?
7.93%
Annie deposits $2,500 into an account earning an annual interest rate of 6.25% compounded monthly. Assuming she makes no withdrawals or additions to this account, approximately how many years will it take for Annie to have $5,000 in her account?
11.12 years
Phil secures a $350,000, 15-year mortgage with an annual interest rate of 5.5%. What will be the unpaid principal balance on Phil's mortgage at the end of 10 years?
$149,718.22
Prime rate 5.5%
Interest rate − Investment A 8.0%
Inflation rate 2.5%
Discount rate 2.0%

Considering the interest rates, calculate the inflation-adjusted return for investment A.
5.37%
What would the inflation-adjusted interest rate be with a 2.5 % inflation rate and a 6% rate of return? Round to two decimal places.
3.41%
Bryan wants to open a photography studio in four years. To do so, he needs to accumulate $175,000 (in today's dollars) to adequately finance this venture. He assumes he can earn an 8% compound annual after-tax rate of return on investment and inflation will average 3.5%. What will be Bryan's serial payment at the end of the third year?
$45,455.08
John would like to purchase his friend's action figure collection in eight years for $12,000. His father will give him $2,000 toward the purchase of the collection at that time. John wants to save monthly for the balance of the purchase price. What is the approximate required monthly payment at the beginning of each month to accumulate the $12,000, including his father's gift, at an assumed interest rate of 5%?
$84.58
You've determined the net present value (NPV) of your client's investment to be $32,500. If your client's required rate of return is 8%, which of the following is most likely to be the investment's internal rate of return (IRR)?
9%
Wes is considering investing in a new printing press for his printing business. The purchase price of the printing press is $225,000 and he expects to be able to sell it for $150,000 at the end of five years. During the five-year period, he expects the equipment to increase her annual cash flows by $45,000 (year 1), $32,000 (year 2), $24,000 (year 3), $16,000 (year 4), and $10,000 (year 5). If his opportunity cost is 7%, what is the net present value (NPV) of this investment?
($9,118.62)
Johanna is considering purchasing a greenhouse for use in her business that will cost $25,000. She anticipates selling this machine at the end of five years for $7,500. The machine is projected to produce the following cash flows:

- End of year 1: $500
- End of year 2: $750
- End of year 3: $1,000
- End of year 4: $2,100
- End of year 5: $4,300

Calculate the net present value (NPV) of purchasing the machine if Johanna's opportunity cost is 10%.
($14,413.11)
Which of the following individuals are required to register as an investment adviser under the Investment Advisers Act of 1940?
I. Bethany provides advice regarding securities.
II. Chase receives compensation for providing advice.
III. Andrew is in the business of providing advice about securities.
IV. Catherine is a CFP® practitioner who issues reports regarding securities.
I, II, III, and IV
Which of the following statements concerning investment advisers is CORRECT?
I. Investment advisers with assets under management of less than $100 million will generally be required to register as an investment adviser with the state in which they maintain clients.
II. In general, investment advisers with $100 million of assets or more under management are required to register with the SEC.
Both I and II
Which of the following acts provides applicable procedures for issuing an initial public offering (IPO) of securities and addresses the paperwork involved in offering new securities to potential investors?
The Securities Act of 1933
Charlie wants to sell financial products as a career. In addition to the Series 63 registration required by his state, what other license must he have to sell both variable life insurance and mutual funds?
I. FINRA Series 65
II. FINRA Series 66
III. FINRA Series 6 or 7
IV. State variable insurance license
III and IV
John, age 55, is unmarried and retired. He has the following assets on deposit at Allworld Bank, an
FDIC-insured financial institution:

Account Ownership Balance
Checking John $80,000
Savings Joint with son $70,000
CD John $225,000
IRA John $150,000

What amount is insured by the FDIC?
$470,000
All of the following statements regarding the National Credit Union Share Insurance Fund (NCUSIF) are correct except
Up to $500,000 of a member's account balances are insured by the NCUSIF
Mandy, your financial planning client, would like you to advise her of tax-efficient estate planning strategies that preserve her family's wealth and incorporate charitable donations. What are the relevant elements in Mandy's financial planning engagement?
I. Address estate and legacy matters
II. Pursue philanthropic interests
III. Preserve or increase wealth
IV. Identify tax considerations
I, II, III, and IV
When providing financial planning services to a client, a certificant needs to provide these services with integrity. Which of the following are characteristics of the duty of Integrity?
I. Integrity ensures that information is accessible only to those authorized to have access.
II. Integrity demands honesty and candor, which must not be subordinated to personal gain an advantage.
III. Allowance can be made for innocent error and legitimate differences of opinion, but integrity cannot coexist with deceit or subordination of one's principles.
II and III
Choose the duties that must be fulfilled for a CFP® professional to act as a fiduciary.
I. Duty of Loyalty
II. Duty of Care
III. Duty to Follow Client Instructions
I, II, and III
To which of the following groups do the CFP Board Fitness Standards apply?
I. CFP® candidates
II. A CFP® practitioner acting in a supervisory capacity
III. Respondents in a CFP Board investigation
IV. Professionals Eligible for Reinstatement
I and IV
Reinstatement by CFP Board is possible under which of the following circumstances?
I. Revocation
II. Suspension of one year or less
III. Suspension of more than one year
IV. Temporary bar of more than one year
II, III, and IV
Wholesome Bakery supplies restaurants with bread and biscuits. The price of bread increases, resulting in a higher profit margin. As a result, the bakery chooses to reduce the supply of biscuits and to increase the supply of bread to take advantage of increased profits. Based on this information, which of the following statements is CORRECT?
The supply curve for biscuits would shift to the left
To enact monetary policy, the Federal Reserve may use which of the following tools?
I. Taxation
II. Discount rate
III. Reserve requirements
IV. Open market operations
II, III, and IV
Which of the following statements regarding the business cycle is CORRECT?
I. Usually, the economy is either in an expansion or contraction phase.
II. The business cycle reflects movements in economic activity and illustrates the concepts of supply and demand.
Both I and II
Which of the following statements describe characteristics of deflation?
I. Prices are falling in absolute terms.
II. The rate of inflation has declined.
I only
Which of the following are characteristics of Chapter 13 bankruptcy provisions?
I. A repayment plan is implemented.
II. The debtor is typically required to relinquish assets.
III. Debt payments may be reduced so payments are more manageable for the debtor.
IV. Generally, Chapter 13 bankruptcy is more favorable for creditors than Chapter 7 bankruptcy.
I, III, and IV
Which of the following are state law exemptions found in Chapter 7 of the Federal Bankruptcy Code?
I. Disability income benefits
II. An exemption for one's homestead
III. Property held as tenants by the entirety
IV. Existing cash value of life insurance policies
I, II, III, and IV
All of the following statements regarding the provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 are correct except
People who have the ability to pay their debts can choose between filing under Chapter 7 and filing under Chapter 13
Which of the following are state law exemptions found in Chapter 7 of the Federal Bankruptcy Code?
I. Pension and retirement plan rights (ERISA plans)
II. A limited amount of personal property
III. Proceeds from annuity contracts
IV. Disability income benefits
I, II, III, and IV
Which of the following statements concerning the Consumer Credit Protection Act is CORRECT?
I. Credit terms must be disclosed before extending credit.
II. Consumer liability for a lost or stolen credit card is limited to $100.
III. Interest must be reported in terms of annual percentage rate (APR).
IV. Credit bureau reports must include accurate, relevant, and recent information.
I and III
Meghan is planning for her son's college education. She would like her son, who was born today, to attend a public university for four years beginning at age 18. Tuition is currently $15,000 a year and has increased at an annual rate of 6%, while inflation has only increased at 2.5% per year. Meghan can earn an investment rate of return of 9%. How much must she save at the end of each year if she wants to make the last payment at the beginning of her son's first year of college? Round to the nearest dollar.
$3,979
Henry's son, Brock, turned six years old today. Henry has plans for Brock to attend a four-year private university at age 18. Currently, tuition is $46,500 per year and is expected to increase at 6.5% per year. Henry can earn an annual compound investment return of 9%. Calculate the lump sum that he needs on Brock's first day of college to be able to pay for his entire college education.
$382,594.77
Which of the following statements regarding the Expected Family Contribution (EFC) as it relates to student financial aid is CORRECT?
I. Parental assets include almost everything owned by the parents with notable exceptions.
II. Student income includes taxable and nontaxable income from the year preceding the award year, reduced by an income protection allowance and taxes.
III. Student assets include the value of everything the student owns or that has been saved on his behalf.
IV. Parental assets and income are assigned a higher rating in the EFC calculation than student assets and income.
I, II, and III
Dionne, Danielle, and Daphne are currently college students eligible for federal student aid. Dionne owes a refund on a federal student grant. Danielle has been unable to maintain satisfactory academic progress. Daphne is experiencing financial difficulties and has defaulted on her federal student loan. Which of these students are likely to lose federal student aid eligibility?
Dionne, Danielle, and Daphne
Ed recently began studying for his master's degree earlier this year on a half-time basis. He has applied for a Pell Grant and a Federal Supplemental Educational Opportunity Grant (FSEOG). Assuming Ed demonstrates financial need, for which of the following is he likely to be approved?
Neither the Pell Grant nor the FSEOG
Justin and Molly have become parents today with their first-born child, Harper. They would like to start saving for Harper's college education and would like her to attend college at National University for four years starting at age 18. As Justin and Molly's financial planner, you have determined that the total amount needed to fund Harper's college education is $175,000. If the expected annual return for deposits into a 529 plan is 9%, what is the amount of the quarterly deposits that must be made into a 529 plan?
$993.52
Derrick wants to establish an education fund that may be used to pay for his son's primary and secondary education expenses. Which of the following will meet Derrick's needs?
I. Section 529 plan
II. Coverdell Education Savings Account(CESA)
Both I and II
Which of the following education funding plans provides tax advantages regardless of the contributor's adjusted gross income (AGI)?
I. Section 529 plan
II. Series EE or Series I savings bonds
III. Coverdell Education Savings Account (CESA)
I only
Bobbi is a full-time employee at an insurance agency and is enrolled in night classes on a part-time basis in pursuit of her MBA. Her employer offers reimbursements for qualified expenses through the Educational Assistance Program. This year Bobbi has incurred the following educational expenses:

- Books: $800
- Tuition: $3,000
- Enrollment Fees: $200
- Computer Lab Fee: $100
- Clothing for school: $150

Based on these expenses, identify the amount of reimbursement for which Bobbi can receive under the Educational Assistance Program.
$4,100
Max and Marlene have three children, Annie, Stephanie, and Joshua, attending college full-time. Which of the following statements regarding education tax credits is CORRECT?
I. An American Opportunity Tax Credit may be claimed by Max and Marlene for each child.
II. Max and Marlene may claim a Lifetime Learning Credit for the entire family.
Both I and II
Which of the following expenses qualify for an employer's Educational Assistance Program?
I. Enrollment fees
II. On-campus housing
III. Full-time, graduate school tuition
IV. Part-time, undergraduate tuition
I, III, and IV
Ryan and Nicole have decided to contribute equally to the cost of a $16,000 used car for Joshua when he graduates from college in two years. Ryan can earn a 5% annual after-tax rate of return. Calculate the amount Ryan must save at the beginning of each month, starting today, to reach this goal.
$316.32
Assuming the Martins' original 30-year fixed mortgage loan amount was $200,000, what is the interest rate on the loan?
10.5%
Assume the Martins

- Paid $2,000 of their credit card debt using a gift from Emile and Dee
- Financed the purchase of an $800 laptop using a new line of credit
- Bought Justin a vintage trombone, valued at $500, online for $300 using their checking account debit card.

Calculate the Martins' net worth after these transactions.
$218,753
The Martins ask you whether their consumer debt ratio is at an acceptable level without considering the projected income earned by Sherri. What should you advise them?
Their ratio is 8.53%, which is excellent
From your meetings with Ryan, you realize he has a tendency to follow the actions of a larger group of people when making financial decisions, whether those actions are rational or not. Choose the behavioral finance theory that explains Ryan's behavior.
Herding
Calculate the Martins' savings from refinancing their home loan over the first year of the new loan. Assume they refinance with a 30-year loan.
$7,716.72
Ryan is considering purchasing a variable universal life policy. Identify the licenses you must maintain to sell him the policy.
I. Series 24
II. Series 65
III. Series 6 or 7
IV. A variable state insurance license
III and IV
Ryan's neighbor, Dan, asked you to prepare his tax return and financial statements for the previous year. You do this for Dan and meet with him when the documents are completed. During your meeting, you present an investment plan for Dan based on the information he provided for the tax return preparation. Dan thanks you for completing the tax return and financial statements and pays you a fee for your work. Dan, however, tells you he is not interested in an investment plan at this time but may contact you in the future if circumstances change. Assuming you are competent to prepare the tax return and financial statements, did you provide financial planning for Dan based on the facts presented?
No, because Dan did not ask you to prepare, nor did he expect you to create, an investment plan
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