AWMA EXAM-REAL ACTUAL EXAM-LATEST
UPDATE 2025 | COMPLETE QUESTIONS WITH
CORRECT DETAILED AND VERIFIED ANSWERS |
RATED 100% CORRECT | GUARANTEED PASS!!
ALREADY GRADED A+
Which one of the following characteristics is more correct concerning younger
wealthy individuals (millennials and GenXers)?
A) Younger wealthy individuals are seeking more technological options in
financial planning.
B) Younger wealthy individuals have not experienced significant bear markets.
C) Younger wealthy individuals have directly opposite financial needs as
compared to baby boomers.
D) Younger wealthy individuals likely want to be advised by one of their own
generation. - (answers)A) Younger wealthy investors (millennials and GenXers)
are seeking fresh approaches to financial planning, including more technological
options. In addition, young clients also have been through fewer years of investing
but have experienced several significant bear markets. Mod 1
One of the most important life goals of wealthy individuals is
A) protecting wealth.
B) assuring their retirement lifestyle.
C) minimizing taxes.
D) travelling the world. - (answers)D) The most frequently stated life goals for
wealthy individuals are having good health, travelling the world, and achieving
financial success. To achieve financial success, the most common financial goals
are protecting wealth, assuring retirement lifestyle, minimizing taxes, and leaving
an estate to their heirs. Mod 1
One of the most important financial goals of wealthy individuals is
A)leaving an estate to their heirs.
B)having good health.
,C)none of these.
D)travelling the world. - (answers)A) To achieve financial success, the most
common financial goals are protecting wealth, assuring retirement lifestyle,
minimizing taxes, and leaving an estate to their heirs. The most frequently stated
life goals for wealthy individuals are having good health, travelling the world, and
achieving financial success. Mod 1
Which one of the following statements is true regarding sustainable and
responsible investments (SRIs)?
A) Shareholder activism is a part of SRIs.
B) Baby boomers are the most likely demographic to invest in SRIs.
C) SRIs provide lower returns, but are a "feel-good" option for investors.
D) SRIs provide only a negative filter of staying away from certain assets. -
(answers)A) Shareholder activism also plays a part in getting companies to listen
by passing shareholder resolutions. Sustainable and responsible investing has been
found to be of importance to Gen Xers and millennials. Several studies have now
shown taking into account ESG factors actually increases long-term returns. For
SRI investments, the adviser needs to set up a series of filters to determine a
client's specific wants for a sustainable fund. For instance, tobacco may be a main
prohibition for one client, while religious aspects may be a positive filter for that
same or another client. Mod 1
Concerning control of assets in a private foundation versus a donor-advised fund,
which one of the following aspects is true for a donor-advised fund?
A)Remains with founder's values
B) Needs lengthy IRS approval
C) Easier and less expensive to launch
D) Must pay out a certain percentage each year - (answers)C) Donor-advised funds
(DAFs) are growing in popularity and have the advantage of being easier and
cheaper to launch and not requiring the lengthy IRS approval that private
foundations need. Values may change with a DAF, as major contributors have
input into this type of charitable fund. In addition, only private foundations must
make payouts each year; DAFs have flexibility with this. Mod 1
If a high net worth (HNW) business owner came to your office, what would you
expect her financials to show, as compared to a HNW non-business owner?
A) About the same income, with more assets and higher net worth
,B) About the same income with more assets, yet lower net worth
C) Higher income, with fewer assets and lower net worth
D) Lower income, with fewer assets and lower net worth - (answers)A) Income is
similar between all HNW professions; however, assets and net worth include
business assets, so more assets and higher net worth are common for HNW
business owners. Many business owners are exposed to a large amount of
unsystematic risk because a significant amount of their capital is often tied up in
their business. Mod 1
When considering the social impact goals of a high net worth client, wealth
planners should expect those clients to
A)not want their planner to be involved in the charitable concern.
B)want their children to also develop charitable tendencies.
C) only want the charitable concern in order to reduce tax exposure.
D) overwhelmingly donate assets and not volunteer their time. - (answers)B) The
reasons high net worth individuals make charitable donations are largely
humanitarian in nature—only half of these individuals donate to reduce tax
exposure as a secondary concern. It is important for advisers to be aware of and
research any social impact their clients find important. In addition, the preferred
methods of accomplishing social impact in the U.S., as compared to worldwide,
are more religious and also include more aspects that are nonfinancial, such as
volunteerism. Mod 1
As compared to younger high net worth individuals, older wealthy individuals
describe their financial needs as more geared toward
A)managing cash and credit.
B) digital meetings.
C)investing outside of equities.
D) obtaining and using credit. - (answers)A) Older clients describe their needs as
straightforward: managing cash and credit, and growing investments. Younger
clients indicate more complex needs, such as a reluctance to invest in equities,
interest in digital meetings, and a propensity toward using credit. Mod 1
Which one of the following top overall concerns was the same for those wealthy
clients under 30 and above 60?
A)Understanding of risk tolerance
B)Fee transparency
, C)Strong investment performance
D)Ensuring children's well-being - (answers)C) The top wealth concerns of
wealthy clients under 30 and above 60 differ greatly, but one area of agreement is
wanting strong investment performance. Under-30 clients generally want
efficiency and transparency—they want to understand what is being proposed and
the costs and risks involved. They also will not hesitate to go to other individuals
or sources in order to better understand their options. This is not the case with a
typical over-60 client, who will work with just one adviser whom they trust, and
will want that adviser to have a strong understanding of their needs and risk
tolerance. In addition, younger investors are more concerned with child care and
older investors with obtaining advice about risk tolerance. Mod 1
The top reasons for a wealthy client to leave an adviser have been found to be in
the general category of
A)poor firm notoriety.
B)high fees.
C)poor investment advice.
D) poor communication. - (answers)D) The top reasons a wealthy client would
leave an adviser, with the most egregious reason being first, are: not returning
phone calls in a timely manner, not being proactive with contact, not providing
good ideas and advice, and not returning emails in a timely manner. Mod 1
George's bonds fell in price on news of higher interest rates. To which one of the
following risks are George's bonds most likely to be subject?
A)Financial risk
B)Reinvestment risk
C)Interest rate ris
D) Default risk - (answers)C) Interest rate risk centers on the inverse relationship
of interest rate changes and bond prices, so, in this situation, if interest rates go up,
the price of George's bonds go down. Mod2
According to the Barnewall study, which one of the following would be a likely
candidate for complex and risky investment opportunities?
A)Corporate executives
B)Individuals with inherited wealth
C)Surgeons (medical and dental)
UPDATE 2025 | COMPLETE QUESTIONS WITH
CORRECT DETAILED AND VERIFIED ANSWERS |
RATED 100% CORRECT | GUARANTEED PASS!!
ALREADY GRADED A+
Which one of the following characteristics is more correct concerning younger
wealthy individuals (millennials and GenXers)?
A) Younger wealthy individuals are seeking more technological options in
financial planning.
B) Younger wealthy individuals have not experienced significant bear markets.
C) Younger wealthy individuals have directly opposite financial needs as
compared to baby boomers.
D) Younger wealthy individuals likely want to be advised by one of their own
generation. - (answers)A) Younger wealthy investors (millennials and GenXers)
are seeking fresh approaches to financial planning, including more technological
options. In addition, young clients also have been through fewer years of investing
but have experienced several significant bear markets. Mod 1
One of the most important life goals of wealthy individuals is
A) protecting wealth.
B) assuring their retirement lifestyle.
C) minimizing taxes.
D) travelling the world. - (answers)D) The most frequently stated life goals for
wealthy individuals are having good health, travelling the world, and achieving
financial success. To achieve financial success, the most common financial goals
are protecting wealth, assuring retirement lifestyle, minimizing taxes, and leaving
an estate to their heirs. Mod 1
One of the most important financial goals of wealthy individuals is
A)leaving an estate to their heirs.
B)having good health.
,C)none of these.
D)travelling the world. - (answers)A) To achieve financial success, the most
common financial goals are protecting wealth, assuring retirement lifestyle,
minimizing taxes, and leaving an estate to their heirs. The most frequently stated
life goals for wealthy individuals are having good health, travelling the world, and
achieving financial success. Mod 1
Which one of the following statements is true regarding sustainable and
responsible investments (SRIs)?
A) Shareholder activism is a part of SRIs.
B) Baby boomers are the most likely demographic to invest in SRIs.
C) SRIs provide lower returns, but are a "feel-good" option for investors.
D) SRIs provide only a negative filter of staying away from certain assets. -
(answers)A) Shareholder activism also plays a part in getting companies to listen
by passing shareholder resolutions. Sustainable and responsible investing has been
found to be of importance to Gen Xers and millennials. Several studies have now
shown taking into account ESG factors actually increases long-term returns. For
SRI investments, the adviser needs to set up a series of filters to determine a
client's specific wants for a sustainable fund. For instance, tobacco may be a main
prohibition for one client, while religious aspects may be a positive filter for that
same or another client. Mod 1
Concerning control of assets in a private foundation versus a donor-advised fund,
which one of the following aspects is true for a donor-advised fund?
A)Remains with founder's values
B) Needs lengthy IRS approval
C) Easier and less expensive to launch
D) Must pay out a certain percentage each year - (answers)C) Donor-advised funds
(DAFs) are growing in popularity and have the advantage of being easier and
cheaper to launch and not requiring the lengthy IRS approval that private
foundations need. Values may change with a DAF, as major contributors have
input into this type of charitable fund. In addition, only private foundations must
make payouts each year; DAFs have flexibility with this. Mod 1
If a high net worth (HNW) business owner came to your office, what would you
expect her financials to show, as compared to a HNW non-business owner?
A) About the same income, with more assets and higher net worth
,B) About the same income with more assets, yet lower net worth
C) Higher income, with fewer assets and lower net worth
D) Lower income, with fewer assets and lower net worth - (answers)A) Income is
similar between all HNW professions; however, assets and net worth include
business assets, so more assets and higher net worth are common for HNW
business owners. Many business owners are exposed to a large amount of
unsystematic risk because a significant amount of their capital is often tied up in
their business. Mod 1
When considering the social impact goals of a high net worth client, wealth
planners should expect those clients to
A)not want their planner to be involved in the charitable concern.
B)want their children to also develop charitable tendencies.
C) only want the charitable concern in order to reduce tax exposure.
D) overwhelmingly donate assets and not volunteer their time. - (answers)B) The
reasons high net worth individuals make charitable donations are largely
humanitarian in nature—only half of these individuals donate to reduce tax
exposure as a secondary concern. It is important for advisers to be aware of and
research any social impact their clients find important. In addition, the preferred
methods of accomplishing social impact in the U.S., as compared to worldwide,
are more religious and also include more aspects that are nonfinancial, such as
volunteerism. Mod 1
As compared to younger high net worth individuals, older wealthy individuals
describe their financial needs as more geared toward
A)managing cash and credit.
B) digital meetings.
C)investing outside of equities.
D) obtaining and using credit. - (answers)A) Older clients describe their needs as
straightforward: managing cash and credit, and growing investments. Younger
clients indicate more complex needs, such as a reluctance to invest in equities,
interest in digital meetings, and a propensity toward using credit. Mod 1
Which one of the following top overall concerns was the same for those wealthy
clients under 30 and above 60?
A)Understanding of risk tolerance
B)Fee transparency
, C)Strong investment performance
D)Ensuring children's well-being - (answers)C) The top wealth concerns of
wealthy clients under 30 and above 60 differ greatly, but one area of agreement is
wanting strong investment performance. Under-30 clients generally want
efficiency and transparency—they want to understand what is being proposed and
the costs and risks involved. They also will not hesitate to go to other individuals
or sources in order to better understand their options. This is not the case with a
typical over-60 client, who will work with just one adviser whom they trust, and
will want that adviser to have a strong understanding of their needs and risk
tolerance. In addition, younger investors are more concerned with child care and
older investors with obtaining advice about risk tolerance. Mod 1
The top reasons for a wealthy client to leave an adviser have been found to be in
the general category of
A)poor firm notoriety.
B)high fees.
C)poor investment advice.
D) poor communication. - (answers)D) The top reasons a wealthy client would
leave an adviser, with the most egregious reason being first, are: not returning
phone calls in a timely manner, not being proactive with contact, not providing
good ideas and advice, and not returning emails in a timely manner. Mod 1
George's bonds fell in price on news of higher interest rates. To which one of the
following risks are George's bonds most likely to be subject?
A)Financial risk
B)Reinvestment risk
C)Interest rate ris
D) Default risk - (answers)C) Interest rate risk centers on the inverse relationship
of interest rate changes and bond prices, so, in this situation, if interest rates go up,
the price of George's bonds go down. Mod2
According to the Barnewall study, which one of the following would be a likely
candidate for complex and risky investment opportunities?
A)Corporate executives
B)Individuals with inherited wealth
C)Surgeons (medical and dental)
