Finance Flashcards
What is the definition of Financial Risk?
The variation or standard deviation of the returns
What does standard deviation mean?
two thirds of the monthly returns tend to fall in one standard deviation of the average return and 95% fall within two standard deviations
what is DeFi?
Decentralized Finance
What are block chains?
databases distributed over many computers and kept secure by cryptography
Does CA tax Social security income?
No
How does CA tax capital gains?
All capital gains are taxed as ordinary income. for me my marginal rate is 9.3%.
what is tax for me on capital gains?
federal 15% + state 9.3% = 24.3%
For 2021 Income Taxes, what is the standard deduction if you are married filing jointly and over 65?
$25,100 + $2,700 = $27,800
For 2021 Income Taxes, how much is allowed for charitable deductions above the standard deduction?
$600
using Schwab how do you find percentage of Equities and bonds?
Click on portfolio performance, then click on Asset Class performance
How do you make changes in the Schwab Intelligent portfolio account for equity / fixed income ratio?
go to Schwab account, click on accounts, click on summary, click on Schwab intelligent portfolio to the right of the account number
slide marker to right for more risk and to left for less risk. click on update portfolio.
in Schwab how do you transfer cash and / or positions from one Schwab account to another Schwab account?
log on to Schwab, click on Accounts, at the bottom click on Transfers and Payments, click on online transfers, click on positions
In Schwab, how do you transfer cash and positions from another Brokerage such as Fidelity to one of your Schwab accounts?
Log into Schwab, click on Accounts, click on Transfer and Payments at the bottom. Click on Transfer an account. Type name of brokerage i.e. Fidelity.
Using Schwab, how can you find fund allocation for an ETF?
click on Fund documents, annual report; find ‘ Fund Allocation’
in Schwab how do select which lots of stocks to sell?
on the sell screen click on cost basis method and select either FIFO, LIFO, high cost, low cost, specified lots or tax lot optimizer
What are the advantages of managing your investments as opposed to have someone else manage it
you don’t have to ay a fee.
you can sell investments when you want to i.e. incur capital gains when you want to pay the tax.
you are aware of when you incur capital gains tax because you did it.
it is easier to do asset allocation because you are in charge of your entire portfolio.
in Schwab how can you find capital gains and losses for an account?
Account summary
click on account
click on market value (upper left)
view realized gain/loss - year to date
search - shows long term and short term gain and loss
When doing tax loss harvesting, what are the considerations?
do you have losses to apply to the gains
will sales of investments hurt your asset allocation
how is SEC yield calculated?
A calculation based on a 30-day period ending on the last of the previous month. It is computed by dividing the net investment income per share earned during the period by the maximum offering price per share on the last day of the period.
what is difference between distribution yield and SEC yield?
Tide powder and Tide liquid are both laundry detergents made by the company Procter & Gamble, but they are formulated differently. Tide powder is a traditional, heavy-duty laundry detergent that is designed to be used in washing machines. It is a blend of surfactants, enzymes, and other ingredients that work together to remove dirt and stains from clothes. Tide liquid, on the other hand, is a liquid detergent that is designed to be used in both washing machines and as a pre-treatment for stains. It may have more ingredients like fabric softeners or brighteners. The main difference between the two is the form in which they are sold. However, both can clean clothes effectively.
