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Private Wealth Management

Instructions:
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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 are the benefits of an IPS to the adviser?






3. When dealing with low basis stock - emotional issues can arise from what?






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






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






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






7. What are the problems that financial advisers can face with low basis stock?






8. Describe a methodical investor personality type.






9. What are the advantages of private exchange funds for low basis stock?






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






11. What are the disadvantages of public exchange funds for low basis stock?






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






13. What are the psychological issues of low basis stock held by an executive?






14. What are the advantages of public exchange funds for low basis stock?






15. template for return objective






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






17. What are typical characteristics of active wealth creators?






18. What are the main characteristics of the distribution phase of life?






19. Describe biased expectations in a behavioral finance context.






20. What are the main characteristics of the maintenance phase of life?






21. When should you use a tax-exempt versus a tax-deferred account?






22. What are typical characteristics of passive recipients of wealth?






23. Calculating the required return component is driven by what 2 elements?






24. characteristics of maintenance phase






25. What should an investor use in mean-variance optimization






26. benefits of IPS to client






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






28. What is the eifference in willingness to take risk between active and passive wealth creators?






29. What progressive tax regimes do not have favorable treatment for interest income/dividend income/capital gains?






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






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






32. What is the general relationship between tax drag% and tax rate with accrual taxes; and as investment horizon increases and return increases?






33. benefits of IPS to manager






34. What are the equity holding life risk attributes for an entrepreneur?






35. What are the main characteristics of fixed annuities?

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






37. What are the psychological issues of low basis stock held by an investor?






38. What are the advantages of private exchange funds for low basis stock?






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






40. What is the general relationship between tax drag% and tax rate with accrual taxes; and as investment horizon increases and return increases?






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






42. What are the main characteristics of chritable gifts?






43. As age increases..






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






45. Describe the different types of double taxation conflicts.






46. 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?






47. characteristics of spontaneous investor

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48. When calculating a required return - you typically must identify what?






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






50. What should an investor use in mean-variance optimization







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