CRPC YOU GOT THIS STUDY CARDS -
MEMORIZE AND BE FAMILIAR WITH
THESE AND YOU GOT THIS. FRIGGEN
110%
Payments received in the years BEFORE you obtain FRA will be reduced $______for
every $________ earned above the earnings cap. - ANSWER
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? - ANSWER 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? - ANSWER 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? - ANSWER The absolute lowest one! 0.5
What does the Coefficient of Variation measure? How do you calculate it? - ANSWER
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? - ANSWER 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! - ANSWER Employee
separates from service, attains age 59 1⁄2, becomes disabled or dies, or qualifies under
hardship rules.
Non spring POA remains effective when? - ANSWER Remains effective after the
principal becomes incapacitated. NON Spring. NOT springing into action until AFTER.
Springing POA remains effective when? - ANSWER 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? - ANSWER Covers
hospital charges but patient must pay for all costs in a hospital beyond 150 days.
,Provided at no charge. No premium.
What does Medicare Part B cover and how do you pay for it? - ANSWER 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? - ANSWER 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? - ANSWER 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? - ANSWER 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? - ANSWER 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? - ANSWER 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? - ANSWER Subject to a taxpayer's
ordinary income tax rate.
What's the long term gain rate applied to long term collectibles? - ANSWER A
maximum rate of 28% applies to long-term gain on collectibles.
Nonperiodic distributions from an annuity contract prior to the annuity start date? -
ANSWER LIFO. It is first considered a taxable interest payment and then a tax-free
return of principal. Last in, first out.
Calculating the exclusion ratio for a fixed annuity? - ANSWER 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? - ANSWER 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? - ANSWER 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? -
ANSWER A husband and a wife.
Joint tenants or tenants in common are forms of ownership that can be used by who
only? - ANSWER Non spouses. Husband and wife can't use these.
Do rights of survivorship property bypasses probate? - ANSWER Yes.
Property held as a tenant in common or in which the decedent solely owned his interest
does not what? - ANSWER Bypass probate.
The basis that is used in determining gains from mutual funds sales may be calculated
by using what three methods? - ANSWER 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. - ANSWER Got it?
When gathering data during the retirement planning process, financial goals should be
quantified in what two ways? - ANSWER Dollar amounts and established time frames.
The Securities Act of 1933 - ANSWER Required that new companies provide full
disclosure through the issuance of a prospectus.
Securities Exchange Act of 1934 - ANSWER Created the SEC.
Investment Company Act of 1940 - ANSWER The regulation of mutual funds.
Investment Advisers Act of 1940 - ANSWER Requires advisors to register with the
SEC.
Statement of Financial Position is used to calculate what? And what does it have on it? -
ANSWER 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? -
ANSWER Inflows and out flows. Not assets and liabilities.
, When calculating net worth, what DON'T you include? - ANSWER Taxes or Auto
When calculating cash flow, what DON'T you include? - ANSWER Checking or Credit
Cards
How do you calculate standard deviation? (Remember it makes you MAD >:| ) -
ANSWER MEAN return plus deviation
MEAN return minus deviation
What are the 3 levels of Standard Deviation? - ANSWER o 68 = 1
o 95 = 2
o 99 = 3
How do you calculate the Coefficient of Variation? - ANSWER Deviation divided by the
expected return.
How do you calculate beta? - ANSWER Multiply.
What is Dollar Cost Averaging? - ANSWER Purchasing shares with equal, periodic
contributions.
Graham recommended that nonprofessional investors apply which one of the following
rules of thumb? - ANSWER Buy stocks for two-thirds or less of their net current assets.
What do cash equivalents include? What DON'T they include? - ANSWER They
include: Treasury bills, negotiable certificates of deposit, commercial paper, and
bankers' acceptances.
They do not include: Treasury NOTES.
Portfolio rebalancing involves selling those assets that have appreciated significantly
and then what? - ANSWER And then reinvesting in assets that have not performed well
in order to get back to your original asset allocation.
Strategic asset allocation establishes a target allocation for a given asset class (such as
60% to common stocks) and then what? - ANSWER And then rebalances the portfolio
when necessary to maintain that target allocation.
The lower the coupon rate... - ANSWER ...the greater the price sensitivity of the bond.
Small firm investors should have... - ANSWER ...a LONG time horizon.
2017 Earnings cap for singles? - ANSWER $16,920
Brent and Carol have an AGI of $40,000 and they receive a combined Social Security
benefit of $15,000. They have no tax-exempt income. What percentage of their Social
MEMORIZE AND BE FAMILIAR WITH
THESE AND YOU GOT THIS. FRIGGEN
110%
Payments received in the years BEFORE you obtain FRA will be reduced $______for
every $________ earned above the earnings cap. - ANSWER
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? - ANSWER 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? - ANSWER 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? - ANSWER The absolute lowest one! 0.5
What does the Coefficient of Variation measure? How do you calculate it? - ANSWER
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? - ANSWER 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! - ANSWER Employee
separates from service, attains age 59 1⁄2, becomes disabled or dies, or qualifies under
hardship rules.
Non spring POA remains effective when? - ANSWER Remains effective after the
principal becomes incapacitated. NON Spring. NOT springing into action until AFTER.
Springing POA remains effective when? - ANSWER 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? - ANSWER Covers
hospital charges but patient must pay for all costs in a hospital beyond 150 days.
,Provided at no charge. No premium.
What does Medicare Part B cover and how do you pay for it? - ANSWER 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? - ANSWER 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? - ANSWER 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? - ANSWER 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? - ANSWER 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? - ANSWER 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? - ANSWER Subject to a taxpayer's
ordinary income tax rate.
What's the long term gain rate applied to long term collectibles? - ANSWER A
maximum rate of 28% applies to long-term gain on collectibles.
Nonperiodic distributions from an annuity contract prior to the annuity start date? -
ANSWER LIFO. It is first considered a taxable interest payment and then a tax-free
return of principal. Last in, first out.
Calculating the exclusion ratio for a fixed annuity? - ANSWER 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? - ANSWER 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? - ANSWER 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? -
ANSWER A husband and a wife.
Joint tenants or tenants in common are forms of ownership that can be used by who
only? - ANSWER Non spouses. Husband and wife can't use these.
Do rights of survivorship property bypasses probate? - ANSWER Yes.
Property held as a tenant in common or in which the decedent solely owned his interest
does not what? - ANSWER Bypass probate.
The basis that is used in determining gains from mutual funds sales may be calculated
by using what three methods? - ANSWER 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. - ANSWER Got it?
When gathering data during the retirement planning process, financial goals should be
quantified in what two ways? - ANSWER Dollar amounts and established time frames.
The Securities Act of 1933 - ANSWER Required that new companies provide full
disclosure through the issuance of a prospectus.
Securities Exchange Act of 1934 - ANSWER Created the SEC.
Investment Company Act of 1940 - ANSWER The regulation of mutual funds.
Investment Advisers Act of 1940 - ANSWER Requires advisors to register with the
SEC.
Statement of Financial Position is used to calculate what? And what does it have on it? -
ANSWER 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? -
ANSWER Inflows and out flows. Not assets and liabilities.
, When calculating net worth, what DON'T you include? - ANSWER Taxes or Auto
When calculating cash flow, what DON'T you include? - ANSWER Checking or Credit
Cards
How do you calculate standard deviation? (Remember it makes you MAD >:| ) -
ANSWER MEAN return plus deviation
MEAN return minus deviation
What are the 3 levels of Standard Deviation? - ANSWER o 68 = 1
o 95 = 2
o 99 = 3
How do you calculate the Coefficient of Variation? - ANSWER Deviation divided by the
expected return.
How do you calculate beta? - ANSWER Multiply.
What is Dollar Cost Averaging? - ANSWER Purchasing shares with equal, periodic
contributions.
Graham recommended that nonprofessional investors apply which one of the following
rules of thumb? - ANSWER Buy stocks for two-thirds or less of their net current assets.
What do cash equivalents include? What DON'T they include? - ANSWER They
include: Treasury bills, negotiable certificates of deposit, commercial paper, and
bankers' acceptances.
They do not include: Treasury NOTES.
Portfolio rebalancing involves selling those assets that have appreciated significantly
and then what? - ANSWER And then reinvesting in assets that have not performed well
in order to get back to your original asset allocation.
Strategic asset allocation establishes a target allocation for a given asset class (such as
60% to common stocks) and then what? - ANSWER And then rebalances the portfolio
when necessary to maintain that target allocation.
The lower the coupon rate... - ANSWER ...the greater the price sensitivity of the bond.
Small firm investors should have... - ANSWER ...a LONG time horizon.
2017 Earnings cap for singles? - ANSWER $16,920
Brent and Carol have an AGI of $40,000 and they receive a combined Social Security
benefit of $15,000. They have no tax-exempt income. What percentage of their Social
