Sophia Martin is assessing her balances.She expects to retire in the next year and has $675,000 in savings and investments and owns her own home that is worth $250,000.Which step in the financial planning process does this situation demonstrate?
A)Determining her current financial situation
B)Developing her financial goals
C)Identifying alternative courses of action
D)Evaluating her alternatives
E)Implementing her financial plan

Question

Quizplus · Accepted Answer

Sophia Martin is assessing her balances, savings, investments, and the value of her home, which indicates she is determining her current financial situation. This is the first step in the financial planning process, where an individual assesses their current financial status by compiling and analyzing information about their assets, liabilities, income, and expenses.

Sophia Martin Is Assessing Her Balances