General Principles Flashcards
Registered In investment Advisors must Register with who when they have assets under $100M, Assets over $100M?
Under $100M state of Domicile
Can register with the SEC when over $100M
Over $110 have to register with the SEC
How do you determine how much is needed for the emergency fund?
Equal to 3 to 6 months of fixed and variable monthly expenses
Less entertainment and discretionary expenses
What is a Pell Grant?
Primary type of Grants disbursed to students.
State of residence is not a criteria for the receipt of a Pell grant
Receipt of a Pell grant is sometimes contingent upon applying for other Grants
Pell Grants are only available to undergraduates
What are the 3 compensation methodes in the CFP codes of conduct?
Fee-Only: No Sales related compensation, No Sales related compensation in connection with any Professional Services the CFP professional or the CFP Professionals Firm provides to clients
Fee-Based: Planning Fee plus Sales related compensation
Sales-Related: Portion of compensation is Sales Based
multiple can apply at once
What are Personal use Assets?
Assets that you use…boats, cars, Jewelry personal assets residence etc…does not include investments, loans or cash
What is an Intrastate Exemption?
Is a registary exemption that an advisor must have clients only in the state which the advisers principle office and place of business are located
Which Intererst rates does the Federal Reserve Board control?
Federal Funds Rate
Discount Rate
What is the Time Value of Money?
Is a financial concept that states that the sum of money is worth more now than the same sum will be at a future date due to its earnings potential in the interim.
It is a basic financial principal that describes how money in the present is worth more than an equal amount in the future. This is because money has the potential to earn interest or other returns over time.
Standard A.1, Fiduciary Duty must be upheld when?
When Financial Advice or Finanacial Planning are occuring
What Standard is the CFP professional adherring to by providing professional services, including responding to reasonable Client inquiries, in a timely and thorough manner?
Standard A.4, Diligence
What financial statement provides a stapshot of a clients net worth at any given point in time, usually at the end of the calendar year?
Statement of Financial Position
Personal Balance Sheet
Net Worth Statement
All 3 are the same
When preparing a Cash flow Statement for a client, what is the correct way to indicate the period covered?
For the period of January 1, 20XX to December 31, 20XX
