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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.
  • 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. typical IPS elements






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






3. What is core capital?






4. What is typically considered when imposing an exit tax?






5. characteristics of foundation stage






6. What are the main characteristics of fixed annuities?

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7. What happens to both tax drag $ and tax drag % with holding period changes and return changes?






8. Describe a cautious investor personality type.






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






10. What are the advantages of hedging for low basis stock?






11. Define capital gains taxes.






12. situational profiling

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






14. Investor questionnaires help to determine what?






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






16. situational profiling

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






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






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






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






21. What is the most common estate planning tool?






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






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






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






25. Describe the different types of double taxation conflicts.






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






27. Describe an individualistic investor personality type.






28. What are the disadvantages of completion portfolios for low basis stock?






29. What are wealth taxes.






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






31. What are the main types of investors?






32. Describe asset segregation in a behavioral finance context.






33. What are the main characteristics of chritable gifts?






34. What is loss aversion?






35. benefits of IPS to manager






36. situational profiling - considerations






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






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

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






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






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






42. What are the two sources of wealth?






43. As probability of death increases...






44. psychological profiling






45. How does the nature of human capital affect the demand for life insurance?






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






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






48. characteristics of accumulation phase






49. Describe biased expectations in a behavioral finance context.






50. Describe a methodical investor personality type.







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