General Principles Flashcards
UIADPIM Uber is a drunk person’s immediate motorvehicle
Understand-where all the gathering happens and people are identified, conflicts of interest, client disclosures and ADV
identify- select goals agreed upon, time horizon educate on unrealistic goals
analyze- cash flow risk management taxes insurance
develop- make conclusions and alternatives to meet goals, consult with other professionals
present- here is the plan this is what we need to do, revisit assumptions, view alternatives
implement- create to do list, assign responsibilities, define monitoring
monitor-as often as you both set you want to
Lifetime learning credit
2k max but have to have 10k of expenses to qualify for max
No room and board
Only one credit per tax return not per child
American opportunity credit
2k 100% next 2k 25% up to 2k per child
First 4 years of post secondary education
Can’t be used with LLC
No room and board
Percent to use towards financial aid
Parents asset use 5.64% towards their expected contribution to education
Students assets use 20% included
Use assets number for 2 years prior to going
Dorm (the fed controls monetary policy)
Discount rate-lower expand raise tighten
Open market (best)- buy expanding sell tighten
Reservation requirements- lower expand increase tightening
Margin rates- goes up tighten goes down decrease
Controls all money supply
Fed funds rate not controlled by fomc it is set at auction
Fiscal policy
Set by congress
Control tax and spending and debt management
PPI
Leading indicator of inflation
Looks at farm products and industrial commodities, if they increase price passed to consumer
GDP
Counts economic activity without regard to yearly price fluctuations like inflation
Newly produced goods and services in a country, the dollar value
Durable goods vs non durable goods
Durable Washing machine, cars, business equipment
Cyclical goods
Nondurable soft goods items that used up immediately like food clothes cosmetics doesn’t slow down in down economic times
Inflation deflation stagflation disinflation
Inflation Too much money chasing too few goods
Deflation decline in price and goods, reverse of inflation
Stagflation combo of slow economic growth and high unemployment with rising prices
Disinflation downward movement of inflated prices, slowing down or price increases
Refinancing mortgage
62 or older at least
Exceptions to registering as investment advisor
Investment advisor ABC
Advice business and compensation
Table:
Teacher
Attorney
Bank
Lawyer
Engineer
Intrastate advisor in unlisted securities (all clients in one state)
Advisor whos only clients are insurance comp
Family office
Broker dealer who gets no extra comp for the advice
Investment advisor registration with sec
Files adv form with sec
Pays filing fee of 150
Submits adv part 1 and schedule 1 updates annually
Adv part 1 includes gen info like location disciplinary action. Form of business background of applicant investment philosophy adv part 2 brochure describe nature of business and relationship, fees and service and conflict of interest
Sec
Regulates investment advisors and their activities under investment advisors act of 1940
Don’t register with sec until they have over 100 mil under management 100-110 grey area
Under 100 register with state
Leading economic indicators
Average weekly hours for production workers in manufacturing
Initial claims for unemployment insurance
New manufacturing orders
New private housing units
Interest rate spread
Stock prices 50p common stocks
Index of consumer expectations
Money supply
Contracts and orders for plants and equipment
