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19 Cards in this Set
- Front
- Back
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Housing Ratio 1 |
Housing cost / Gross pay Should be 28% or less |
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Housing costs |
PITI Principal Interest Taxes Insurance |
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Housing Ratio 2 |
Housing costs + all other debt payments / Gross pay Should be less than 36% |
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Disclosure to whom? |
May be made to any party on consent of the client |
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Asset accumulation phase |
Discretionary cash flow is low and debt to net worth is high |
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College education problem 18 years then 4 yr funding |
0 CF0 0CFj 17 Nj -10000CFj 4Nj Rate / inflation = i Solve for NPV Then that becomes PV I = changes to full rate
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To see cumulative interest paid in mortgage |
# of months then AMORT Toggle XY to see amort amount First is cumulative interest |
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Revocation |
Is permanent unless due to felony that has been overturned Financial felony like embezzlement will always bar |
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Fed funds rate Fed discount rate |
Fed funds rate is rate btw banks Discount rate is rate banks borrow from fed |
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Coinsurance formula |
Insurance carried / insurance required X Covered Loss Less deductible = insurer pays |
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Property Coinsurance: how much does insurance pay? |
Amount of coverage purchased / Amount of coverage required (80% x replacement cost) X Loss Less deductible = insurance pays |
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Aleatory |
Value exchanged not equal |
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Indemnity |
Entitled to compensation only if financial loss has been suffered |
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MEC tax |
Db Proceeds not taxed Loan proceeds are taxed at OI |
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Stop loss vs max out of pocket |
Stop loss is just max co insurance, still pay deductible Max oop is everything
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Rabbi trusts |
Not subject to m&a, change of heart but IS subject to bankruptcy risk |
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Cross purchase vs entity |
Entity = admin easier, no basis step up Cross = more admin, more policies and basis step up |
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Social security for spouse |
Must be married at least 10 yrs |
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HO3 HO4 HO5 HO6 |
3 is homeowners 4 is tenant 5 is suped up homeowners with replacement 6 is condo |
