######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
##################################CRPC
CRPC .pdf################################################################################################
.pdfCRPC .pdf############################################################
CRPC
Payments received in the years BEFORE you obtain FRA will be reduced $______for
every $________ earned above the earnings cap. - ANS-
Old-age benefits of Social Security recipients may be reduced if the client earns income
from wages and salary during retirement prior to Social Security's full retirement age. By
how much are the benefits reduced? - ANS-Benefits paid to persons in the years prior
to attaining full retirement age are reduced by $1 for every $2 earned over the limit.
How much tax exempt interest is included in SS? - ANS-ALL Tax-exempt interest is
included in the computation of the taxation of SS benefits.
When seeking investments that have the least amount of risk, what beta do you
choose? - ANS-The absolute lowest one! 0.5
What does the Coefficient of Variation measure? How do you calculate it? - ANS-It
measures a securities risk adjusted return. It allows you to compare 2 securities
together, so you DIVIDE.
DEVIATION DIVIDED BY THE EXPECTED RETURN.
What kind of money comes out of a Roth IRA distribution first? - ANS-Contribution
amounts always come out of a Roth IRA account first, and then conversion amounts, if
any.
When can a distribution be made from a TSA? 4 categories! - ANS-Employee separates
from service, attains age 59 1⁄2, becomes disabled or dies, or qualifies under hardship
rules.
Non spring POA remains effective when? - ANS-Remains effective after the principal
becomes incapacitated. NON Spring. NOT springing into action until AFTER.
Springing POA remains effective when? - ANS-Becomes effective when the principal
becomes incompetent or incapacitated. SPRINGING. Springing into action WHEN it
happens.
What does Medicare Part A cover and how do you pay for it? - ANS-Covers hospital
charges but patient must pay for all costs in a hospital beyond 150 days.
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
CRPC .pdf####################################################################################CRPC .pdfCRP
,######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
##################################CRPC
CRPC .pdf################################################################################################
.pdfCRPC .pdf############################################################
Provided at no charge. No premium.
What does Medicare Part B cover and how do you pay for it? - ANS-Covers physician
services
Premium charge! If you're eligible for Part A, you've got Part B, BUT FOR A CHARGE!
What makes you eligible for Medicare coverage? - ANS-Over 65 and in a covered
occupation meaning you're getting social security.
What situations are exempt from the 10% penalty on qualified plan distributions made
before age 59 ½? - ANS-Distributions because of death and annuitized payments based
on an individual's remaining life expectancy.
What does "Currently" insured mean and what would you qualify for? - ANS-6 quarters
of coverage (so about 2 years paying into social security) What would you qualify for?
ONLY 2 THINGS! Survivor's benefit for dependent child and Lump-sum death benefit
spouse or child. Your spouse doesn't get anything!
What does "Fully" insured mean and what would you qualify for? - ANS-40 quarters of
coverage (10 YEARS paying into social security!) What would you qualify for?
Everything. Survivor's benefit for your dependent parent who is age 62 or older.
Survivor's benefit for Maxine's spouse or former spouse who is age 60 or older.
Dependent child benefits.
How are net LONG term capital gains taxed? - ANS-Subject to a 0% tax rate if the
taxpayer is in a 10% or 15% marginal income tax bracket.
How are net SHORT term capital gains taxed? - ANS-Subject to a taxpayer's ordinary
income tax rate.
What's the long term gain rate applied to long term collectibles? - ANS-A maximum rate
of 28% applies to long-term gain on collectibles.
Nonperiodic distributions from an annuity contract prior to the annuity start date? -
ANS-LIFO. It is first considered a taxable interest payment and then a tax-free return of
principal. Last in, first out.
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
CRPC .pdf####################################################################################CRPC .pdfCRP
,######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
##################################CRPC
CRPC .pdf################################################################################################
.pdfCRPC .pdf############################################################
Calculating the exclusion ratio for a fixed annuity? - ANS-The investment in the annuity
contract is divided by the total expected return.
What is the tax treatment for a shareholder participating in a common stock's dividend
reinvestment program? - ANS-The shareholder is treated as if he or she received a
cash dividend equal to the fair market value of the shares purchased under the plan.
You literally bought more stock with the dividends. The dividend you got is treated like
cash. The dividend is cash and you used that cash to buy more stock. The fair market
value of the shares purchased is generally taxed at a 15% or 20% rate.
What is the valuation date for gifts? - ANS-The valuation date for gifts is when the
transfer is completed!
Joint tenancy with right of survivorship (JTWROS), tenancy by the entirety (TBE), and
community property (CP) are all forms of co-ownership that can be used by who only? -
ANS-A husband and a wife.
Joint tenants or tenants in common are forms of ownership that can be used by who
only? - ANS-Non spouses. Husband and wife can't use these.
Do rights of survivorship property bypasses probate? - ANS-Yes.
Property held as a tenant in common or in which the decedent solely owned his interest
does not what? - ANS-Bypass probate.
The basis that is used in determining gains from mutual funds sales may be calculated
by using what three methods? - ANS-LIFO, Average Cost, Specific Identification
method
In a community property state, a person's earnings from their job subsequent (after) to
the date of their marriage will be considered community property. We get married, my
earnings then become yours as well. We "share it". Community property. If I own
property before I met you, that's still just mine. - ANS-Got it?
When gathering data during the retirement planning process, financial goals should be
quantified in what two ways? - ANS-Dollar amounts and established time frames.
The Securities Act of 1933 - ANS-Required that new companies provide full disclosure
through the issuance of a prospectus.
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
CRPC .pdf####################################################################################CRPC .pdfCRP
,######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
##################################CRPC
CRPC .pdf################################################################################################
.pdfCRPC .pdf############################################################
Securities Exchange Act of 1934 - ANS-Created the SEC.
Investment Company Act of 1940 - ANS-The regulation of mutual funds.
Investment Advisers Act of 1940 - ANS-Requires advisors to register with the SEC.
Statement of Financial Position is used to calculate what? And what does it have on it? -
ANS-Assets and Liabilities which helps you calculate Net Worth.
A Cash Flow statement is used to calculate what? And what does it have on it? -
ANS-Inflows and out flows. Not assets and liabilities.
When calculating net worth, what DON'T you include? - ANS-Taxes or Auto
When calculating cash flow, what DON'T you include? - ANS-Checking or Credit Cards
How do you calculate standard deviation? (Remember it makes you MAD >:| ) -
ANS-MEAN return plus deviation
MEAN return minus deviation
What are the 3 levels of Standard Deviation? - ANS-o 68 = 1
o 95 = 2
o 99 = 3
How do you calculate the Coefficient of Variation? - ANS-Deviation divided by the
expected return.
How do you calculate beta? - ANS-Multiply.
What is Dollar Cost Averaging? - ANS-Purchasing shares with equal, periodic
contributions.
Graham recommended that nonprofessional investors apply which one of the following
rules of thumb? - ANS-Buy stocks for two-thirds or less of their net current assets.
What do cash equivalents include? What DON'T they include? - ANS-They include:
Treasury bills, negotiable certificates of deposit, commercial paper, and bankers'
acceptances.
They do not include: Treasury NOTES.
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
CRPC .pdf####################################################################################CRPC .pdfCRP
##################################CRPC
CRPC .pdf################################################################################################
.pdfCRPC .pdf############################################################
CRPC
Payments received in the years BEFORE you obtain FRA will be reduced $______for
every $________ earned above the earnings cap. - ANS-
Old-age benefits of Social Security recipients may be reduced if the client earns income
from wages and salary during retirement prior to Social Security's full retirement age. By
how much are the benefits reduced? - ANS-Benefits paid to persons in the years prior
to attaining full retirement age are reduced by $1 for every $2 earned over the limit.
How much tax exempt interest is included in SS? - ANS-ALL Tax-exempt interest is
included in the computation of the taxation of SS benefits.
When seeking investments that have the least amount of risk, what beta do you
choose? - ANS-The absolute lowest one! 0.5
What does the Coefficient of Variation measure? How do you calculate it? - ANS-It
measures a securities risk adjusted return. It allows you to compare 2 securities
together, so you DIVIDE.
DEVIATION DIVIDED BY THE EXPECTED RETURN.
What kind of money comes out of a Roth IRA distribution first? - ANS-Contribution
amounts always come out of a Roth IRA account first, and then conversion amounts, if
any.
When can a distribution be made from a TSA? 4 categories! - ANS-Employee separates
from service, attains age 59 1⁄2, becomes disabled or dies, or qualifies under hardship
rules.
Non spring POA remains effective when? - ANS-Remains effective after the principal
becomes incapacitated. NON Spring. NOT springing into action until AFTER.
Springing POA remains effective when? - ANS-Becomes effective when the principal
becomes incompetent or incapacitated. SPRINGING. Springing into action WHEN it
happens.
What does Medicare Part A cover and how do you pay for it? - ANS-Covers hospital
charges but patient must pay for all costs in a hospital beyond 150 days.
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
CRPC .pdf####################################################################################CRPC .pdfCRP
,######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
##################################CRPC
CRPC .pdf################################################################################################
.pdfCRPC .pdf############################################################
Provided at no charge. No premium.
What does Medicare Part B cover and how do you pay for it? - ANS-Covers physician
services
Premium charge! If you're eligible for Part A, you've got Part B, BUT FOR A CHARGE!
What makes you eligible for Medicare coverage? - ANS-Over 65 and in a covered
occupation meaning you're getting social security.
What situations are exempt from the 10% penalty on qualified plan distributions made
before age 59 ½? - ANS-Distributions because of death and annuitized payments based
on an individual's remaining life expectancy.
What does "Currently" insured mean and what would you qualify for? - ANS-6 quarters
of coverage (so about 2 years paying into social security) What would you qualify for?
ONLY 2 THINGS! Survivor's benefit for dependent child and Lump-sum death benefit
spouse or child. Your spouse doesn't get anything!
What does "Fully" insured mean and what would you qualify for? - ANS-40 quarters of
coverage (10 YEARS paying into social security!) What would you qualify for?
Everything. Survivor's benefit for your dependent parent who is age 62 or older.
Survivor's benefit for Maxine's spouse or former spouse who is age 60 or older.
Dependent child benefits.
How are net LONG term capital gains taxed? - ANS-Subject to a 0% tax rate if the
taxpayer is in a 10% or 15% marginal income tax bracket.
How are net SHORT term capital gains taxed? - ANS-Subject to a taxpayer's ordinary
income tax rate.
What's the long term gain rate applied to long term collectibles? - ANS-A maximum rate
of 28% applies to long-term gain on collectibles.
Nonperiodic distributions from an annuity contract prior to the annuity start date? -
ANS-LIFO. It is first considered a taxable interest payment and then a tax-free return of
principal. Last in, first out.
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
CRPC .pdf####################################################################################CRPC .pdfCRP
,######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
##################################CRPC
CRPC .pdf################################################################################################
.pdfCRPC .pdf############################################################
Calculating the exclusion ratio for a fixed annuity? - ANS-The investment in the annuity
contract is divided by the total expected return.
What is the tax treatment for a shareholder participating in a common stock's dividend
reinvestment program? - ANS-The shareholder is treated as if he or she received a
cash dividend equal to the fair market value of the shares purchased under the plan.
You literally bought more stock with the dividends. The dividend you got is treated like
cash. The dividend is cash and you used that cash to buy more stock. The fair market
value of the shares purchased is generally taxed at a 15% or 20% rate.
What is the valuation date for gifts? - ANS-The valuation date for gifts is when the
transfer is completed!
Joint tenancy with right of survivorship (JTWROS), tenancy by the entirety (TBE), and
community property (CP) are all forms of co-ownership that can be used by who only? -
ANS-A husband and a wife.
Joint tenants or tenants in common are forms of ownership that can be used by who
only? - ANS-Non spouses. Husband and wife can't use these.
Do rights of survivorship property bypasses probate? - ANS-Yes.
Property held as a tenant in common or in which the decedent solely owned his interest
does not what? - ANS-Bypass probate.
The basis that is used in determining gains from mutual funds sales may be calculated
by using what three methods? - ANS-LIFO, Average Cost, Specific Identification
method
In a community property state, a person's earnings from their job subsequent (after) to
the date of their marriage will be considered community property. We get married, my
earnings then become yours as well. We "share it". Community property. If I own
property before I met you, that's still just mine. - ANS-Got it?
When gathering data during the retirement planning process, financial goals should be
quantified in what two ways? - ANS-Dollar amounts and established time frames.
The Securities Act of 1933 - ANS-Required that new companies provide full disclosure
through the issuance of a prospectus.
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
CRPC .pdf####################################################################################CRPC .pdfCRP
,######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
##################################CRPC
CRPC .pdf################################################################################################
.pdfCRPC .pdf############################################################
Securities Exchange Act of 1934 - ANS-Created the SEC.
Investment Company Act of 1940 - ANS-The regulation of mutual funds.
Investment Advisers Act of 1940 - ANS-Requires advisors to register with the SEC.
Statement of Financial Position is used to calculate what? And what does it have on it? -
ANS-Assets and Liabilities which helps you calculate Net Worth.
A Cash Flow statement is used to calculate what? And what does it have on it? -
ANS-Inflows and out flows. Not assets and liabilities.
When calculating net worth, what DON'T you include? - ANS-Taxes or Auto
When calculating cash flow, what DON'T you include? - ANS-Checking or Credit Cards
How do you calculate standard deviation? (Remember it makes you MAD >:| ) -
ANS-MEAN return plus deviation
MEAN return minus deviation
What are the 3 levels of Standard Deviation? - ANS-o 68 = 1
o 95 = 2
o 99 = 3
How do you calculate the Coefficient of Variation? - ANS-Deviation divided by the
expected return.
How do you calculate beta? - ANS-Multiply.
What is Dollar Cost Averaging? - ANS-Purchasing shares with equal, periodic
contributions.
Graham recommended that nonprofessional investors apply which one of the following
rules of thumb? - ANS-Buy stocks for two-thirds or less of their net current assets.
What do cash equivalents include? What DON'T they include? - ANS-They include:
Treasury bills, negotiable certificates of deposit, commercial paper, and bankers'
acceptances.
They do not include: Treasury NOTES.
######################################################################################!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Q
CRPC .pdf####################################################################################CRPC .pdfCRP
