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Private Wealth Management

Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. What is HIFO accounting?






2. What is the reinvestment caveat when considering tax loss harvesting?






3. Human capital is sometimes referred to as what?






4. Describe a methodical investor personality type.






5. Investor questionnaires help to determine what?






6. What is the difference b/t a required and desired return objective?


7. What is tax alpha?






8. What are the diffferent types of tax jurisdictions?






9. Describe a methodical investor personality type.






10. characteristics of accumulation phase






11. Why would an individual try to use generation skipping in estate planning?






12. What are the general legal and regulatory considerations for individuals?






13. What are the advantages of completion portfolios for low basis stock?






14. Describe asset segregation in a behavioral finance context.






15. four types of investors






16. All costs associated with probate are born by whom?


17. Generally - how does portfolio size - liquidity - time horizon - and/or importance of spending affect ability to tolerate risk?






18. What are the diversification techniques for low basis stock?






19. What are the main characteristics of variable annuities?


20. As wealth increases...






21. In contrast to standard finance (MPT) - behavioral finance assumes individuals do what?






22. What are the benefits of an IPS to the client?






23. How is demand for insurance affected by risk tolerance - financial wealth - probability of death - age - and bequest desire?






24. What are the psychological issues of low basis stock held by an entrepreneur?






25. benefits of IPS to manager






26. benefits of IPS to client






27. What is the general relationship b/t a client's perception of wealth and risk willingness?






28. What is the difference between a deterministic approach and a monte carlo approach to portfolio construction?






29. What are the different methods of relief from double taxation?






30. An investor's willingness to take risk is determined by what?


31. What are the main characteristics of fixed annuities?


32. What are the main characteristics of variable annuities?


33. What are the steps involved in creating an IPS?


34. What are the advantages of an outright sale of low basis stock?






35. What are the diffferent types of estate ownership rights?


36. benefits of IPS to client






37. What is the general relationship between tax drag% and tax rate when capital gains taxes are deferred and B=1; and as investment horizon increases and return increases?






38. Living expenses in retirment can be referred to as what?






39. What is tax alpha?






40. characteristics of distribution phase






41. Living expenses in retirment can be referred to as what?






42. characteristics of maintenance phase






43. What are the different retirment risks and how can they be hedged?






44. What are the different types of trusts?






45. What is the person called that transfers assets through a will?






46. What are the disadvantages of private exchange funds for low basis stock?






47. What are ways that individuals can avoid probate?






48. What is HIFO accounting?






49. Who is responsible for gains/losses in a taxable (accrual taxation) account?






50. Describe the equity holding life three stages from the perspective of the stock.