Under Basic Facts, which type of goals are highlighted?

• A. Retirement income goals
• B. Goals- expense related goals
• C. Risk tolerance goals
• D. Education funding goals

Answer: (B)

The main idea here is that Basic Facts centers on capturing the client’s essential spending to anchor the financial plan. Expense-related goals are highlighted because knowing current and anticipated expenses establishes the cash flow foundation—how much money is needed to cover daily living, housing, transportation, health, and other routine costs. Once those expenses are understood, you can assess whether projected income, savings, and investments will meet those needs and then align other goals on top of that baseline.

Retirement income goals and education funding goals are important, but they’re long-term targets that depend on the expense base you’ve already established. Risk tolerance, meanwhile, is not a goal to fund; it’s a factor that helps determine suitable investment choices.