1. The different types of fee structures that Certified Financial Planner™ can charge are as follows;
 Solid flat stipend – A one-time fee that will cover expenses for all services provided by
the financial planner.
 Hourly rate – A rate given to be charged for hour the client meets with the financial
planner.
 Commission on products sold – Commission is earned based on a percentage of the
costs of products sold, such as insurance and investment products.
 Percentage of assets managed – A cost that is a direct percentage related to how many
assets are being managed by the client.
The fee structure varies differently among planners and aren’t restricted to only one of the
above, a combination of different fee structures/plans can be used so the client’s and or the
planner’s time aren’t being taken advantage of. This is usually the case because financial
planners have an obligation to have the client’s best interest in mind, this is known as a fiduciary
responsibility.
2. When it comes to storing confidential financial records, security comes first. It is safest to store
the records across multiple formats to ensure safety. There are three storage methods that are
regarded as the safest for storing confidential information, they are;
 Online storage – Commonly known as cloud storage, storing information online
prevents the risk of losing anything that you can physically have in your possession since
it will always be stored on an online server. The big risk with this method is in some very
rare instances private property stored online has been able to be accessed by
unsolicited parties.
 Storing on your hard drive – This is similar to online storage in that the information is
accessed via computer. The difference is that it isn’t backed up online and the
information is in your computer’s hard drive and there only. This means that if you lose
your hard drive or it gets corrupted then you lose the information along with it.
 Keeping physical copies – This is the oldest and most straight forward way of storing
confidential records. It can be inconvenient, but it’s a fool proof method of keeping your
confidential records safe. Assuming the client is responsible and thorough in his storing
methods.
When it comes to safely storing confidential financial records. It is recommended to use all three
methods to give yourself the least risk of losing your information, the downside is that there is a
small chance that the information can end up in unwanted hands. This risk can also be lowered
depending on how responsible the client is with his or her records.
3. Given these two different refinancing scenarios here are what your options look like along with
the advantages they bring;
 A 4.2% interest rate loan for 15 years with monthly payments of $1352.85
o You will pay of this mortgage faster.
o You will pay less overall interest.
 A 4.6% interest rate loan for 30 years with monthly payments of $921.38
o Your monthly payments will be considerably lower.
o You will have higher net discretionary cash flow.
If you are to pursue one of these options then there will be a $5,500 refinancing fee. You can
choose to pay this fee upfront or have it added into your mortgage payments. Your adjusted
mortgage payments are as follows.


A 4.2% interest rate loan for 15 years with monthly payments of $1394.65
o You will pay of this mortgage faster.
o You will pay less overall interest.
A 4.6% interest rate loan for 30 years with monthly payments of $949.85
o You will pay of this mortgage faster.
o You will pay less overall interest.
You also have the option of not refinancing your mortgage, here are your current rates.

A 6.6% interest rate loan for 30 years with monthly payments of $1777
Based on the fact that you are planning to live in this house indefinitely and your cash flow
statement indicates that you have sufficient cash flow for discretionary expenses we suggest
that you apply for the 15 year loan at 4.2% interest with monthly payments of $1352.85 and
pay the refinancing fee of $5,500 up front. (Refer to attached excel spreadsheet for charts)
4. A split limit insurance of $50k/$100k/$50k with a $500 deductible means that you are insured
with those amounts in different circumstances.
 The first bracket ($50k) insures you for medical expenses for a single person. Meaning if
the medical cost for a single person exceeds $50k, you are liable for the difference.
 The second bracket ($100k) insures you for all medical expenses combined. Meaning
that if the total cost of medical expenses for every person combined exceeds $100k,
you are liable for the difference.
 The last bracket ($50k) is the amount of coverage you have for property damages,
meaning if you exceed $50k in property damages, you are liable for the difference.
 A $500 deductible means that $500 is the amount of expenses that must be paid out of
pocket before your insurer will pay any expenses.
Your house is insured for %100 of its cash value, in addition to that you also have replacement
cost coverage on your property. This means that if your house is fully insured for all damages, in
addition to that all costs that are necessary to repair or rebuild your home are also covered.