Fundamental/Insurance planning Flashcards
The CFP mark can be used as follows:
Successsful Student, CFP®️
For business card, letter or email closing:
Successful Student
CERTIFIED FINANCIAL PLANNER™️ (all caps)
Conduct deemed unacceptable and will Always bar an individual
Felony conviction for theft, embezzlement, or other financially based crime
Felony conviction for tax fraud or other tax related crimes
Revocation of financial professional license unless administrative
Felony conviction of murder or rape
Felony conviction of other violent crime <= 5yrs
Conduct deemed a presumptive bar and presumed unacceptable
2 or more personal or business bankruptcies
Revocation of non-financial license unless administrative
Suspension of financial professional license unless administrative
Felony conviction for non-violent crimes <=5yrs
Felony conviction for violent crimes other than murder or rape >=5yrs
An investment advisor under the Investment Advisors Act of 1940
Someone who is the business of providing advice for securities for compensation.
ABC’s - Advice, Business, Compensation
Exceptions to registration with SEC
TABLEs are incidental - Teachers, Accountants, Brokers, Lawyers, and Engineers
Exemptions from Registration with SEC
VIPs are SaFE from exemptions - Venture capital, Insurance companies, Private funds <=$150M, home State, Foreign advisors, and securities not on a national Exchange
The Brochure Rule requires written disclosure to every client of the following:
Advisory services provided and fees for those services
Types of securities
Education of advisor
Participation/interest in securities trx
Given to client B4 or at time enter into contract
Written,plain English summary ADV part 2A and B
Summary of material changes provided annually
Either deliver the updated brochure or offer to deliver an updated copy
FINRA
Register on U4
Must pass securities exam to sell securities
S6-Mfunds,UITs,VUL and annuities
Must have state ins license to sell VUL or annuities
S7-sell all except commodities and futures
Accredited Investor
1,2,3 Test
* $1M nt worth
* $200k of income if filing single
* $300k of spousal income
Shift in Demand Curve
Incr/Decr in
* Income
* Taxes
* Savings Rate
* Disposable Income
Anything that causes discretionary income to increase will:
Shift the demand curve up and to the right
Anything that causes discretionary income to decrease will
Shift the demand curve down and to the left
Shift in the Supply curve
Due to changes in:
Technology
Competition
Anything other than price
Anything that causes increase in production costs or supply to decrease will:
Shift Supply curve up and to the left.
Equilibrium is
The price at which the quantity demanded equals the quantity supplied.
