Which of the following is NOT one of the three main questions a financial planner will ask regarding investments?

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Study for the Personal Financial Planning Test. Engage with flashcards and multiple-choice questions, each with hints and explanations. Prepare for your exam effectively!

The correct choice is that the question regarding whether you want your investments to maximize your annual income taxes is not one of the three main questions a financial planner typically asks. Financial planners focus on understanding their clients' goals and constraints related to investment strategies. The key elements include how much money a client is willing to invest, the investment time horizon, and the client's risk tolerance.

Maximizing annual income taxes does not align with the primary objective of investment planning, which typically aims for wealth growth and effective tax management rather than maximizing tax liabilities. Financial planners usually help clients minimize taxes through appropriate investment choices rather than seeking to maximize them. This reflects a fundamental understanding that taxes are an expense that investors generally seek to reduce when planning their investments.

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