Foundations of Disabilities

KNOWLEDGE EXPECTED OF: QAFP® Professionals

Highest Knowledge Level: Understanding

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Explain that the long-term financial security of an individual with a disability may depend on:
    • Net income
    • Rate of savings
    • Amount of savings
    • Rate of return on assets
    • Debt levels
    • Long-term income needs
    • Long-term income sources
    • Long-term expenses
    • Inflation
    • Risk tolerance
    • Life expectancy
    • Unforeseen events (e.g., deterioration of disability, death of family / caregiver / person upon whom individual is dependent)
    • Personal attitudes / preferences
    • Cash flow limitations
    • Procrastination
    • Reliance on government benefits
    • Lack of awareness regarding potential costs associated with disability
    • Lack of awareness of savings programs available
    • Personal attitudes / choices
  • Explain the sources of disability funding, such as:
    • Savings
    • Registered Disability Savings Plan
    • Cash flow (employment, trust, investment)
    • Family support
    • Government income / support programs
  • Define the time horizons associated with disabilities.
    • Accumulation period
    • Withdrawal period
  • Identify roadblocks to saving for individuals with disabilities during the accumulation phase, such as:
    • Cash flow limitations
    • Debt load
    • Procrastination
    • Reliance on government benefits
    • Lack of awareness regarding cost of disability
    • Lack of awareness of savings programs available
    • Personal attitudes / choices
  • Explain that the ability to meet an income goal for an individual with a disability may depend on:
    • Frequency of savings during accumulation period
    • Amount of savings during accumulation period
    • Growth rate of assets
    • Family dynamics
    • Income required during withdrawal period
    • Income sources during withdrawal period
    • Risk tolerance
    • Debt levels
    • Personal attitudes

KNOWLEDGE EXPECTED OF: CFP® Professionals

Highest Knowledge Level: Application

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Determine how each of these factors may impact the long-term financial security of an individual with a disability:
    • Net income
    • Rate of savings
    • Amount of savings
    • Rate of return on assets
    • Debt levels
    • Long-term income needs
    • Long-term income sources
    • Long-term expenses
    • Inflation
    • Risk tolerance
    • Life expectancy
    • Unforeseen events (e.g., deterioration of disability, death of family / caregiver / person upon whom individual is dependent)
    • Personal attitudes / preferences
    • Cash flow limitations
    • Procrastination
    • Reliance on government benefits
    • Lack of awareness regarding potential costs associated with disability
    • Lack of awareness of savings programs available
    • Personal attitudes / choices
  • Explain the sources of disability funding, such as:
    • Savings
    • Registered Disability Savings Plan
    • Cash flow (employment, trust, investment)
    • Family support
    • Government income / support programs
  • Define the time horizons associated with disabilities.
    • Accumulation period
    • Withdrawal period
  • Identify roadblocks to saving for individuals with disabilities during the accumulation phase, such as:
    • Cash flow limitations
    • Debt load
    • Procrastination
    • Reliance on government benefits
    • Lack of awareness regarding cost of disability
    • Lack of awareness of savings programs available
    • Personal attitudes / choices
  • Determine how each of these factors may impact the ability to meet an income goal for an individual with a disability:
    • Frequency of savings during accumulation period
    • Amount of savings during accumulation period
    • Growth rate of assets
    • Family dynamics
    • Income required during withdrawal period
    • Income sources during withdrawal period
    • Risk tolerance
    • Debt levels
    • Personal attitudes