Test your basic knowledge |

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 to obvious but it re-enforces your understanding as you take the test each time.
1. What are the 3 categories of investors when discussing concentrated positions?






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






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






4. Define capital gains taxes.






5. typical IPS elements






6. What are the disadvantages of hedging for low basis stock?






7. stages of life






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






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






10. characteristics of cautious investor






11. As age increases..






12. Describe an individualistic investor personality type.






13. What are typical characteristics of active wealth creators?






14. What is core capital?






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






16. How is mortality risk typically hedged?






17. 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?






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






19. Describe a methodical investor personality type.






20. What is measure of wealth?






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






22. What are the main types of investors?






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






24. Why do individuals often take steps to avoid probate?






25. The client's risk tolerance (mostly willingness) is affected by what personal characteristics?






26. What are the benefits of an IPS to the adviser?






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






28. characteristics of spontaneous investor






29. What are the main characteristics of the foundation phase of life?






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






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






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






33. characteristics of accumulation phase






34. What are the two sources of wealth?






35. situational profiling - considerations






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






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






38. What is an equity collar? What is the purpose of the underlying positions






39. What is loss aversion?






40. Describe an individualistic investor personality type.






41. What are wealth taxes.






42. characteristics of spontaneous investor






43. What are the main characteristics of chritable gifts?






44. What are the main characteristics of chritable gifts?






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






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






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






48. What are the two sources of wealth?






49. What are wealth taxes.






50. What is human capital?