Financial Planning Process

Front 1

conflicts of interest are disclosed under the ___ principle and rule ______

Back 1

Fairness
2.2

Front 2

Are securities held at a brokerage firm insured? Y/N

Back 2

Yes, by SIPC

Front 3

Who regulates brokerage companies?

Back 3

NASD

Front 4

A gift of a QTP is a gift of present/future interest.

Back 4

present - even though owner retains control.

Front 5

Kiddie tax..subtract _____ deduction first ....then apply 10% tax....then figure kiddie tax at parent's tax bracket.

Back 5

$950

Front 6

is the CPI a leading economic indicator? Y/N

Back 6

N

Front 7

A depression is ___ quarters of negative GDP

Back 7

6

Front 8

Fed lowers the reserve requirement....tight monetary policy? Y/N

Back 8

Y

Front 9

Fed's major function is monetary or fiscal policy?

Back 9

monetary

Front 10

In pursuing an easy money policy, the Fed would buy/sell securities

Back 10

Buy

Front 11

in a period of declining interest rates, should you buy short or long term bonds?

Back 11

long - try to lock in higher rates

Front 12

For Hope Credit..._____ max, first ___ of college ____ phaseout

Back 12

$1800
2
100K to 120K

Front 13

For Lifetime Learning Credit ____ max, inclu graduate school, ____ phaseout

Back 13

$2000
100K to 120K

Front 14

Pell Grant is for poorish families. T/F

Back 14

T

Front 15

For mortgage calc, use ___ mode

Back 15

End

Front 16

If an advsior doensn't sell products must he register with FINRA? Y/N

Back 16

N

Front 17

To sell mutual funds you need a Series ____

Back 17

6

Front 18

If your credit card is stolen, how much is your liability?

Back 18

$50

Front 19

the most common of educational loans; include both direct subsidized and direct unsubsidized loans; interest rate is fixed at 6.8%; several repayment plans for direct loans with repayment schedules over 10 or more years. This is a ____ loan

Back 19

Stafford

Front 20

The CFP® certificant may reveal, without the client's consent, any personally identifiable information relating to the client relationship if it is reasonably necessary to defend the CFP® certificant against any charges of wrongdoing. T/F

Back 20

T

Front 21

A CFP® certificant may be personally identified as a registered investment adviser only if he or she is registered personally, but not if the CFP® certificant's firm is registered as an investment adviser (and he or she is not personally registered). T/F

Back 21

T

Front 22

the most common of educational loans; include both direct subsidized and direct unsubsidized loans; interest rate is fixed at 6.8%; several repayment plans for direct loans with repayment schedules over 10 or more years. This is a ____ loan

Back 22

Stafford

Front 23

The CFP® certificant may reveal, without the client's consent, any personally identifiable information relating to the client relationship if it is reasonably necessary to defend the CFP® certificant against any charges of wrongdoing. T/F

Back 23

T

Front 24

A CFP® certificant may be personally identified as a registered investment adviser only if he or she is registered personally, but not if the CFP® certificant's firm is registered as an investment adviser (and he or she is not personally registered). T/F

Back 24

T

Front 25

What is the difference between direct loans and the FFELP?

Back 25

Source of money is different

Front 26

College Savings Plans cover locked in Tuition plans. T/F

Back 26

F

Front 27

Does the exact amount of comp need to be disclosed by planner to client?

Back 27

No can be an estimate

Front 28

A Series 6 securities license permits the sale of mutual funds, unit investment trusts, and variable products (life insurance and annuities). T/F

Back 28

T

Front 29

Def of Aleatory (think of dice)

Back 29

Affected by chance

Front 30

O3 coverage has ____ perils ...think of ___ door

Back 30

open

Front 31

Perkins loans are available to students with exceptional financial need. T/F

Back 31

T

Front 32

As a rule of thumb, it is best if consumer debt does not exceed

Back 32

20% of net income

Front 33

Financial Planning Process
EGADIM

Back 33

Establish relationship
Gather Data
Analyze
Develop Plan
Implement
Monitor

Front 34

Debts not discharged thru bankruptcy

Back 34

Student Loans
Alimony and child support
3 years of back taxes
Fraud

Front 35

Protected Assets in Bankruptcy

Back 35

IRA and Roth up to $1M
Alimony and child support
Pensions, Life insurance and annuities

Front 36

Worker's comp is/is not subj to income tax

Back 36

is not

Front 37

PLUS loans

Back 37

for Parents of Undergrads

Front 38

Two college loans for affluent

Back 38

PLUS
unsubsidized Stafford

Front 39

Loans and grants for unaffluent

Back 39

Pell
SEOG grant
subsidized Stafford
Perkins
Work Study

Front 40

Lifetime Learning Credit
Max/family is _____
Avail for grad school?

Back 40

$2000
Y

Front 41

American Opp Tax Credit
Only for ___
Max per student is ____
You'll never use Lifetime because of this

Back 41

4 years of post secondary
$2500

Front 42

CFP Code of Ethics
I can obtain CFP Designation

Back 42

Integrity
Competence
Objectivity
Confidentiality
Fairness
Professionalism
Diligence

Front 43

Violating a clear breach of duty

Back 43

Neglifence per se

Front 44

In a situation where someone has undertaken activities or actions that bring about extraordinarily hazardous circumstances, the term that would best describe this situation is

Back 44

Absolute liability

Front 45

Exceptions to Inv Adv Act of 1940

Back 45

Banks who are not investment co
Accountants or lawyers - incidental advice
persons/advice/US govt securities
Financial industry pubs

Front 46

Exemptions to Inv Adv Act of 1940

Back 46

Advisors whose clients are insurance co

Front 47

Once the contract is placed in written form, all previous and prior understandings of a verbal (or any other nature) will not be allowed to contradict the written contract. This will be known as

Back 47

Parol evidence rule