NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Introduction to Personal Financial Planning
Which of the following is a characteristic of a SMART financial goal?
A SMART financial goal is measurable and has a specific time frame. It must also be specific, achievable and realistic given the client's resources. Vague goals like being rich, or goals without a deadline, do not meet this standard.
- AIt is flexible with no defined time horizon
- BIt is measurable and has a specific time frameCorrect
- CIt is stated only in general terms such as 'be rich'
- DIt is set without considering the client's resources
Explanation
SMART goals are Specific, Measurable, Achievable, Realistic and Time-bound. A goal with a measurable amount and a deadline fits this. Vague, open-ended or resource-ignoring goals fail the criteria.
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