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20 July, 11:04

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?

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  1. 20 July, 13:16
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    Determining her current financial situation.

    Explanation:

    Under Financial planning processes, there are 6 major steps, viz

    (1) determining your current financial situation

    (2) developing financial goals

    (3) identifying alternative courses of action

    (4) evaluating alternatives

    (5) creating and implementing a financial action plan,

    (6) re-evaluating and revising your plan.

    Sophia Martin is currently on Step 1 as she is currently assessing her balances, which means she is evaluating, gauging and estimating what she earns at the moment.
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