Chapter 2 — General Financial Planning Principles

Domain Weight: 15% (~26 questions) Folder: Chapter 2 - General Financial Planning Principles/

| File | Topic | Key Concepts | |---|---|---| | 2.1 - The Six-Step Financial Planning Process.md | 6-step process, TVM, personal finance ratios, education planning | Process sequence, annuity calculations, real vs. nominal, 529 plans, financial ratios |

Core competencies this chapter builds:

• Execute the 6-step CFP planning process and identify which step is occurring
• Perform TVM calculations: lump sum, annuity, annuity due, multi-step projections
• Calculate real rate of return and convert between nominal and real dollars
• Evaluate a client's financial health using key ratios (emergency fund, housing, debt service)
• Apply 529 plan rules including superfunding and the SECURE 2.0 Roth rollover provision

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