######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
################################CRPC
CRPC 0-70.pdfCRPC 0-70.pdf#################################################################################
0-70.pdfCRPC 0-70.pdf######################################################
CRPC 0-70
Statment of Financial Position - ANS-Assets and Liabilities
Net Worth
Balances "balance sheet"
Cash Flow Statment - ANS-Inflows and Outflows
Payments
Assets - ANS-cash and equivilants, stock, use assets, things clients own **even if not
completly paid for.
Should be valued at fair market value.
**leased property and equipment are not typically included and may be shown in
footnotes
Liabilities - ANS-credit cards, bank loans, mortgages,
divided between short term and long term
Long generally on statment of financial position
Short generally on cash flow statement
Benefits/Negatives as Real Estate as an Investment - ANS-pro: tax benefits, inflation
hedge, leverage
con: illiquidity, subprime, high investment/transaction, management
Correlation - ANS-the further away from +1 the more diverse.
range +1/-1
Tax on qualified dividends vs interest from fixed securities - ANS-max 15%-20% for
dividends, OI for interest from fixed securities
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
################################CRPC
CRPC 0-70.pdf####################################################################################CRPC
0-70.pdfCRPC 0-70.pdf###################################################### 0-70
,######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
################################CRPC
CRPC 0-70.pdfCRPC 0-70.pdf#################################################################################
0-70.pdfCRPC 0-70.pdf######################################################
Bond maturity time frames - ANS-Short - up to 5 years
Intermediate - 5-10 years
Long - 10+ years
the longer the bond maturity the more volitile t/f - ANS-t
TIPS - ANS-fixed interest date where the principle increases every 6 months with the
CPI i.e. keeping up with inflation
The increase in principal is taxable each year
4 Steps of asset allocation - ANS-1. Determine which asset classes should be
represented in the portfolio
2. Determine the percentages that each asset class should represent in the total
portfolio
3. Select the securities
4. Review the performance and investment climate
Low p/e ratio often indicate - ANS-an under value in the market
Target funds disadvantage - ANS-hard to get a benchmark due to variances in asset
allocation between fund families
SS Origin Facts - ANS-- Funded by FICA
- 2/3 of those over 65 get half or more of income from SS
- 1/5 retirees SS is only source of income
- Inflation Adjusted (CPI)
- 44% claim at 62
- 1% claim at 70
- Less than 1/3 file at FRA or later
Reduction for SS by age - ANS-62 - 30%
63 - 25%
64 - 20%
65 - 13.3%
66 - 6.7%
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
################################CRPC
CRPC 0-70.pdf####################################################################################CRPC
0-70.pdfCRPC 0-70.pdf###################################################### 0-70
################################CRPC
CRPC 0-70.pdfCRPC 0-70.pdf#################################################################################
0-70.pdfCRPC 0-70.pdf######################################################
CRPC 0-70
Statment of Financial Position - ANS-Assets and Liabilities
Net Worth
Balances "balance sheet"
Cash Flow Statment - ANS-Inflows and Outflows
Payments
Assets - ANS-cash and equivilants, stock, use assets, things clients own **even if not
completly paid for.
Should be valued at fair market value.
**leased property and equipment are not typically included and may be shown in
footnotes
Liabilities - ANS-credit cards, bank loans, mortgages,
divided between short term and long term
Long generally on statment of financial position
Short generally on cash flow statement
Benefits/Negatives as Real Estate as an Investment - ANS-pro: tax benefits, inflation
hedge, leverage
con: illiquidity, subprime, high investment/transaction, management
Correlation - ANS-the further away from +1 the more diverse.
range +1/-1
Tax on qualified dividends vs interest from fixed securities - ANS-max 15%-20% for
dividends, OI for interest from fixed securities
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
################################CRPC
CRPC 0-70.pdf####################################################################################CRPC
0-70.pdfCRPC 0-70.pdf###################################################### 0-70
,######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
################################CRPC
CRPC 0-70.pdfCRPC 0-70.pdf#################################################################################
0-70.pdfCRPC 0-70.pdf######################################################
Bond maturity time frames - ANS-Short - up to 5 years
Intermediate - 5-10 years
Long - 10+ years
the longer the bond maturity the more volitile t/f - ANS-t
TIPS - ANS-fixed interest date where the principle increases every 6 months with the
CPI i.e. keeping up with inflation
The increase in principal is taxable each year
4 Steps of asset allocation - ANS-1. Determine which asset classes should be
represented in the portfolio
2. Determine the percentages that each asset class should represent in the total
portfolio
3. Select the securities
4. Review the performance and investment climate
Low p/e ratio often indicate - ANS-an under value in the market
Target funds disadvantage - ANS-hard to get a benchmark due to variances in asset
allocation between fund families
SS Origin Facts - ANS-- Funded by FICA
- 2/3 of those over 65 get half or more of income from SS
- 1/5 retirees SS is only source of income
- Inflation Adjusted (CPI)
- 44% claim at 62
- 1% claim at 70
- Less than 1/3 file at FRA or later
Reduction for SS by age - ANS-62 - 30%
63 - 25%
64 - 20%
65 - 13.3%
66 - 6.7%
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
################################CRPC
CRPC 0-70.pdf####################################################################################CRPC
0-70.pdfCRPC 0-70.pdf###################################################### 0-70
