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47 Cards in this Set

  • Front
  • Back
conflicts of interest are disclosed under the ___ principle and rule ______
Fairness
2.2
Are securities held at a brokerage firm insured? Y/N
Yes, by SIPC
Who regulates brokerage companies?
NASD
A gift of a QTP is a gift of present/future interest.
present - even though owner retains control.
Kiddie tax..subtract _____ deduction first ....then apply 10% tax....then figure kiddie tax at parent's tax bracket.
$950
is the CPI a leading economic indicator? Y/N
N
A depression is ___ quarters of negative GDP
6
Fed lowers the reserve requirement....tight monetary policy? Y/N
Y
Fed's major function is monetary or fiscal policy?
monetary
In pursuing an easy money policy, the Fed would buy/sell securities
Buy
in a period of declining interest rates, should you buy short or long term bonds?
long - try to lock in higher rates
For Hope Credit..._____ max, first ___ of college ____ phaseout
$1800
2
100K to 120K
For Lifetime Learning Credit ____ max, inclu graduate school, ____ phaseout
$2000
100K to 120K
Pell Grant is for poorish families. T/F
T
For mortgage calc, use ___ mode
End
If an advsior doensn't sell products must he register with FINRA? Y/N
N
To sell mutual funds you need a Series ____
6
If your credit card is stolen, how much is your liability?
$50
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
Stafford
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
T
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
T
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
Stafford
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
T
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
T
What is the difference between direct loans and the FFELP?
Source of money is different
College Savings Plans cover locked in Tuition plans. T/F
F
Does the exact amount of comp need to be disclosed by planner to client?
No can be an estimate
A Series 6 securities license permits the sale of mutual funds, unit investment trusts, and variable products (life insurance and annuities). T/F
T
Def of Aleatory (think of dice)
Affected by chance
O3 coverage has ____ perils ...think of ___ door
open
Perkins loans are available to students with exceptional financial need. T/F
T
As a rule of thumb, it is best if consumer debt does not exceed
20% of net income
Financial Planning Process
EGADIM
Establish relationship
Gather Data
Analyze
Develop Plan
Implement
Monitor
Debts not discharged thru bankruptcy
Student Loans
Alimony and child support
3 years of back taxes
Fraud
Protected Assets in Bankruptcy
IRA and Roth up to $1M
Alimony and child support
Pensions, Life insurance and annuities
Worker's comp is/is not subj to income tax
is not
PLUS loans
for Parents of Undergrads
Two college loans for affluent
PLUS
unsubsidized Stafford
Loans and grants for unaffluent
Pell
SEOG grant
subsidized Stafford
Perkins
Work Study
Lifetime Learning Credit
Max/family is _____
Avail for grad school?
$2000
Y
American Opp Tax Credit
Only for ___
Max per student is ____
You'll never use Lifetime because of this
4 years of post secondary
$2500
CFP Code of Ethics
I can obtain CFP Designation
Integrity
Competence
Objectivity
Confidentiality
Fairness
Professionalism
Diligence
Violating a clear breach of duty
Neglifence per se
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
Absolute liability
Exceptions to Inv Adv Act of 1940
Banks who are not investment co
Accountants or lawyers - incidental advice
persons/advice/US govt securities
Financial industry pubs
Exemptions to Inv Adv Act of 1940
Advisors whose clients are insurance co
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
Parol evidence rule