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CFP - Steps in the Financial Planning Process > General Principles Definitions > Flashcards

General Principles Definitions Flashcards

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1
Q

529 ABLE Accounts

A

Tax-advantaged savings accounts for individuals with disabilities

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2
Q

Fiduciary Liability

A

The legal responsibility of fiduciaries to act in the best interest of their clients or beneficiaries

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3
Q

Financial Leverage

A

The use of borrowed funds to increase potential returns on an investment. While leverage can amplify gains

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4
Q

Financial Objectives

A

Specific

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5
Q

Financial Planning

A

The process of creating a comprehensive strategy to manage financial resources in alignment with life goals. It typically includes setting objectives

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6
Q

Definition

A

A structured approach to managing finances that encompasses budgeting

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7
Q

Education

A

Learning opportunities and certifications available for those pursuing a career in financial planning

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8
Q

Objectives

A

Goals that guide financial planning

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9
Q

Practice Standards (CFP Board)

A

Guidelines set by the CFP Board to ensure consistent

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10
Q

Process

A

The structured steps taken in financial planning

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11
Q

Report

A

The documentation of a financial plan

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12
Q

Financial Services Professionals

A

Licensed individuals who provide financial advice

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13
Q

Financial Statements

A

Personal

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14
Q

Fiscal Policy

A

Governmental actions regarding taxation and spending intended to influence economic growth

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15
Q

Form ADV

A

A registration form filed by investment advisors with the SEC

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16
Q

Future Value

A

The amount an investment or a sum of money will grow to over a period at a specified interest rate

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17
Q

Gain or Loss

A

Reporting

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18
Q

General Business Tax Credits

A

Tax incentives available to businesses that reduce federal income tax liability

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19
Q

Generation-Skipping Transfer Tax

A

A federal tax imposed on transfers to individuals two or more generations below the transferor

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20
Q

Gift Tax

A

A federal tax on transfers of money or property to others without receiving full value in return

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21
Q

Guidelines for Selecting an Insurance Agent

A

Factors to consider when choosing an insurance agent

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22
Q

Guidelines for Selecting an Insurance Company

A

Criteria for evaluating insurance companies

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23
Q

Death Taxes

A

State

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24
Q

Debt-to-Income Ratios

A

A financial ratio used to assess an individual’s ability to manage monthly debt payments. Calculated by dividing total monthly debt payments by gross monthly income

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25
Q

Deductions

A

Prepaid

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26
Q

Defined-Benefit Plan (Distributions)

A

Payments made from a defined-benefit plan to participants

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27
Q

Defined-Benefit Plan (Generally)

A

A retirement plan that guarantees a specific payout at retirement

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28
Q

Defined-Contribution Plan (Distributions)

A

The amounts paid out to participants from a defined-contribution plan

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29
Q

Defined-Contribution Plan (Generally)

A

A retirement plan where contributions are defined

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30
Q

Consumer Financial Protection Bureau (CFPB)

A

A U.S. government agency responsible for overseeing financial products and services offered to consumers. It enforces laws aimed at protecting consumers in financial markets.

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31
Q

Office of Financial Research

A

A federal office within the Department of the Treasury that supports the Financial Stability Oversight Council by providing data

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32
Q

Office of National Insurance

A

A federal office that monitors the insurance industry and advises the Treasury on insurance-related issues

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33
Q

Disability Income Insurance

A

Insurance coverage that provides income replacement benefits to individuals who are unable to work due to illness or injury

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34
Q

Distribution Planning

A

A strategy in retirement planning focused on managing the withdrawal of assets to optimize tax efficiency

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35
Q

Diversification

A

An investment strategy that spreads assets across various types of investments (e.g.

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36
Q

Dividends

A

Payments made to shareholders from a corporation’s earnings

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37
Q

Dodd-Frank Wall Street Reform and Consumer Protection Act

A

Legislation aimed at increasing transparency and accountability in the financial system

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38
Q

DOL Fiduciary Rule

A

A U.S. Department of Labor regulation that expands the fiduciary responsibility of financial advisors who provide retirement investment advice

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39
Q

Economic Benefit

A

Refers to any benefit received from an economic activity

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40
Q

Economic Concepts

A

Includes foundational ideas such as business cycles

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41
Q

Business Cycle

A

The fluctuation of economic activity over time

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42
Q

Competitive Market Structures

A

Various types of market organization (e.g.

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43
Q

Consumer Price Index (CPI)

A

A measure that examines the average change over time in the prices of a basket of goods and services consumed by households

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44
Q

Deflation

A

A decrease in the general price level of goods and services

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45
Q

Disinflation

A

A reduction in the rate of inflation

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46
Q

Economic Indicators

A

Statistics

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47
Q

Inflation

A

An increase in the overall price level of goods and services in an economy over time

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48
Q

Macroeconomics

A

The study of the overall economic structure

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49
Q

Microeconomics

A

The study of individual markets

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50
Q

Monetary Policy

A

Central bank actions

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51
Q

Opportunity Cost

A

The value of the next best alternative foregone when making a decision

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52
Q

Price Elasticity

A

A measure of how much the quantity demanded of a good responds to a change in price

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53
Q

Rational Expectations

A

The assumption that individuals form forecasts based on available information

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54
Q

Scarcity

A

A fundamental economic problem of having limited resources to meet unlimited wants

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55
Q

Supply and Demand

A

The relationship between the availability of a good (supply) and the desire for it (demand)

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56
Q

Time Value

A

The concept that money available now is worth more than the same amount in the future due to its earning potential.

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57
Q

Yield Curves

A

Graphs showing the relationship between interest rates and bonds of varying maturities

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58
Q

Education Funding

A

Financial strategies and tools to meet education expenses

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59
Q

529 Plans

A

State-sponsored education savings plans with tax advantages

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60
Q

Coverdell Education Savings Account (ESA)

A

A tax-advantaged account for educational expenses with contribution limits

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61
Q

Gift-Leaseback Technique

A

A tax planning strategy where a parent gifts property to a child

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62
Q

UGMA/UTMA Accounts

A

Custodial accounts that allow minors to own securities

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63
Q

Equal Credit Opportunity Act

A

A federal law prohibiting discrimination in credit transactions based on race

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64
Q

Estate Administration

A

The process of managing and settling an estate after death

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65
Q

Estate Planning

A

Preparing for the management and transfer of assets after death

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66
Q

Executor

A

The person appointed to administer an estate

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67
Q

Letter of Instructions

A

A non-legally binding document left by the decedent to provide guidance to survivors on various matters not covered by a will.

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68
Q

Ethics

A

Guidelines and codes of conduct governing professional behavior

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69
Q

Code of Ethics (NAPFA)

A

A set of ethical guidelines established by the National Association of Personal Financial Advisors for fee-only financial planners.

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70
Q

Exchange-Traded Funds (ETFs)

A

Investment funds traded on stock exchanges

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71
Q

Health and Medical Insurance

A

Insurance coverage that helps pay for medical and surgical expenses incurred by the insured. Coverage can include various plans such as HMOs

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72
Q

Consumer Driven Health Plan (CDHP)

A

A health plan that allows individuals to use tax-advantaged accounts

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73
Q

Exclusive Provider Organization (EPO)

A

A managed care plan where services are only covered if the patient uses doctors

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74
Q

Health Maintenance Organization (HMO)

A

A health insurance plan that requires members to receive healthcare services from a designated network of providers

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75
Q

Independent Practice Association (IPA)

A

An organization of independent physicians that contracts with HMOs and other insurance providers to deliver healthcare services to insured individuals

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76
Q

Point of Service (POS)

A

A health plan that combines characteristics of HMO and PPO plans

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77
Q

Preferred Provider Organization (PPO)

A

A type of health insurance plan that offers a network of healthcare providers

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78
Q

Health

A

Disability

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79
Q

Homeowner Insurance

A

Insurance that covers a residence and its contents against risks like fire

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80
Q

ICFP

A

International Certified Financial Planner (CFP) designation

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81
Q

Identity Theft

A

The fraudulent acquisition and use of a person’s private identifying information

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82
Q

Improper Disposition of Assets

A

The misuse or inappropriate allocation of an individual’s assets

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83
Q

Inadequate Resources

A

A situation where an individual’s financial resources are insufficient to meet financial goals or obligations

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84
Q

Income

A

The total amount of money received by an individual or entity

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85
Q

Character of

A

The classification of income for tax purposes

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86
Q

Defined

A

Income includes any increase in wealth that is recognized for tax purposes

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87
Q

Shifting

A

The transfer of income from one tax entity to another

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88
Q

Timing and Recognition of

A

Refers to when income is recognized for tax purposes

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89
Q

Income Tax

A

A tax imposed on the financial income of individuals

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90
Q

Alternative Minimum Tax (AMT)

A

A separate tax system designed to ensure that high-income earners pay a minimum level of tax

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91
Q

Kiddie Tax

A

A tax on the unearned income of a child under age 19 (or 24 for full-time students)

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92
Q

Planning

A

The process of strategically managing income

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93
Q

Rate Structure

A

The graduated scale used to calculate tax liability

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94
Q

Inflation

A

Deflation

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95
Q

Inflation-Adjusted Income & Asset Analysis

A

A method of analyzing income and asset values by adjusting for inflation

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96
Q

Installment Sales

A

A sale in which payments are made over time

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97
Q

Insurance Regulation

A

The body of laws and regulations governing the insurance industry to ensure fair practices

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98
Q

Internal Rate of Return (IRR)

A

The discount rate that makes the net present value (NPV) of an investment zero

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99
Q

Joint Tenancy with Right of Survivorship

A

A form of co-ownership in which each tenant has an equal share and right to the property. Upon the death of one tenant

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100
Q

Leasing

A

A financial arrangement where the lessee pays the lessor for the use of an asset over time

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101
Q

Leverage

A

The use of borrowed funds to increase the potential return on an investment

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102
Q

Life Insurance

A

Insurance that pays out a sum of money to designated beneficiaries upon the insured’s death.

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103
Q

Beneficiaries

A

Individuals designated to receive benefits from the life insurance policy.

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104
Q

Purpose

A

Primarily to provide financial security to dependents in the event of the insured’s death.

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105
Q

Settlements

A

Life and Viatical

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106
Q

Survivorship

A

A policy covering two lives

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107
Q

Term

A

A policy providing coverage for a specific term

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108
Q

Universal

A

A flexible premium policy with a cash value component that allows adjustments to premium and death benefits.

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109
Q

Variable Universal

A

A type of universal life insurance with investment options for the cash value

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110
Q

Variable

A

A policy with a cash value invested in sub-accounts similar to mutual funds

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111
Q

Whole

A

Permanent life insurance with fixed premiums

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112
Q

Lifetime Learning Credit

A

A tax credit available for qualified tuition and related expenses for eligible students enrolled in postsecondary education courses

113
Q

Limited Liability Companies (LLCs)

A

A business structure combining the liability protection of a corporation with the tax flexibility of a partnership

114
Q

Long-Term vs. Short-Term Debt

A

Classifications of debt based on the repayment period

115
Q

Lottery Winnings

A

Money won from lottery games

116
Q

Lump-Sum Distributions

A

A one-time payment of the entire balance from a retirement account

117
Q

Margin Trading

A

The practice of buying securities with borrowed funds

118
Q

Market Timing

A

An investment strategy attempting to predict market direction and make buy or sell decisions based on those predictions

119
Q

Medicaid

A

A government-funded program providing healthcare coverage to low-income individuals and families

120
Q

Medicare

A

A federal health insurance program primarily for individuals aged 65 and older

121
Q

National Association of Personal Financial Advisors (NAPFA)

A

An organization for fee-only financial advisors

122
Q

National Association of Securities Dealers (NASD)

A

A regulatory body responsible for overseeing the practices of broker-dealers and the operation of the Nasdaq Stock Market. Merged into the Financial Industry Regulatory Authority (FINRA) in 2007.

123
Q

National Flood Insurance Program (NFIP)

A

A federal program that provides flood insurance to property owners in participating communities

124
Q

Negotiable Instruments

A

Written documents guaranteeing the payment of a specific amount of money

125
Q

Net Present Value (NPV)

A

The difference between the present value of cash inflows and outflows over a period

126
Q

New York Insurance Regulation 187

A

A regulation requiring that recommendations made by life insurance agents and brokers must be in the best interest of the consumer

127
Q

Ownership of Property

A

Refers to the legal rights over property

128
Q

Community Property

A

Property acquired during marriage and owned jointly by spouses in community property states.

129
Q

Life Estate

A

An interest in property that lasts for the duration of an individual’s life

130
Q

Outright

A

Complete ownership of property without any limitations on the owner’s right to use or transfer it.

131
Q

Remainder

A

The interest in property that takes effect after the termination of a life estate.

132
Q

Tenancy by the Entirety

A

A form of property ownership available only to married couples

133
Q

Tenancy in Common

A

A form of co-ownership where each tenant holds a separate

134
Q

Partnerships

A

A business structure where two or more individuals share ownership

135
Q

Passive Activity

A

A business or trade activity in which the taxpayer does not materially participate

136
Q

Personal Financial Statements

A

Documents that outline an individual’s financial situation

137
Q

Power of Attorney

A

A legal document allowing one person (the agent) to act on behalf of another (the principal) in specified or all financial or legal matters.

138
Q

Present Value

A

The current value of a future sum of money

139
Q

Principal Asset Classes

A

Categories of investments

140
Q

Probate

A

The legal process of administering a decedent’s estate

141
Q

Professional Corporations

A

A corporate structure for licensed professionals such as doctors or lawyers

142
Q

Professional Liability

A

The responsibility professionals have to uphold standards in their practice

143
Q

Professional Limited Liability Company (PLLC)

A

A business entity offering limited liability to owners

144
Q

Promissory Estoppel

A

A legal principle that prevents a party from withdrawing a promise if the other party has reasonably relied on it to their detriment.

145
Q

Purchasing Power

A

Erosion of

146
Q

Qualified Domestic Relations Order (QDRO)

A

A legal order related to divorce or separation that divides a retirement plan

147
Q

Qualified Small Employer HRA (QSEHRA)

A

A Health Reimbursement Arrangement for small employers

148
Q

Rate of Return

A

The gain or loss on an investment over a specified period

149
Q

Ratio Analysis

A

A tool for evaluating a company’s financial health

150
Q

Real Estate Mortgage Investment Conduit (REMIC)

A

An investment vehicle that holds a pool of mortgages and issues multiple classes of interests in them to investors.

151
Q

Registered Investment Adviser (RIA) Definition

A

An individual or firm registered with the SEC or state regulators to provide investment advice

152
Q

Registered Investment Advisors Act of 1940

A

A law that establishes the regulatory framework for investment advisors

153
Q

Regulation T

A

A Federal Reserve regulation that governs margin accounts

154
Q

Rehabilitation Tax Credits

A

Federal or state tax incentives provided to encourage the rehabilitation and preservation of historic buildings.

155
Q

Restricted Property

A

Assets subject to certain conditions or limitations

156
Q

Retirement Plan Distributions

A

The withdrawals or disbursements made from a retirement account

157
Q

Retirement Planning

A

The process of preparing for financial independence during retirement

158
Q

Annuity Payments

A

Taxation of

159
Q

Couple

A

Planning for

160
Q

Death Benefits

A

Payments made to beneficiaries upon the death of a retirement plan participant

161
Q

Early Retirement

A

The decision to retire before the typical retirement age

162
Q

Economic Environment

A

The broader financial conditions affecting retirement planning

163
Q

Inflation Rate Assumptions

A

Estimations of future inflation rates

164
Q

Lump Sum vs. Deferred Payments

A

Options for receiving retirement benefits either as a single payment or over time

165
Q

Retirement Income

A

Sources of funds for retirement

166
Q

Role of Insurance

A

Insurance products that support retirement security

167
Q

Social Security Retirement Age

A

The age at which individuals become eligible for full Social Security retirement benefits

168
Q

Risk Management

A

The identification

169
Q

Avoidance

A

A strategy of eliminating risk by not engaging in activities that expose an individual or entity to potential loss.

170
Q

Retention

A

A strategy where individuals or businesses keep and manage risks

171
Q

Transfer

A

A risk management technique where the responsibility of risk is transferred to a third party

172
Q

S Corporations

A

A type of corporation with pass-through taxation

173
Q

Savings and Loan Institutions

A

Financial institutions primarily focused on accepting savings deposits and providing mortgage and other loans

174
Q

SEC (Securities and Exchange Commission)

A

The federal regulatory body overseeing securities markets

175
Q

Secured vs. Unsecured Debt

A

Secured debt is backed by collateral

176
Q

Securities Exchange Act of 1934

A

A federal law that governs securities transactions on the secondary market and established the SEC to enforce securities regulations.

177
Q

SFSP (Society of Financial Service Professionals)

A

A professional association providing resources

178
Q

Social Security

A

A federal program providing retirement

179
Q

Disability Benefits

A

Monthly benefits provided to eligible individuals who cannot work due to a qualifying disability.

180
Q

Nontraditional Relationships

A

Considerations for Social Security benefits eligibility and claiming strategies for individuals in nontraditional relationships.

181
Q

Retirement Age

A

The age at which individuals are eligible for full retirement benefits

182
Q

Society of Financial Service Professionals (SFSP)

A

An association offering education and support for financial professionals to promote ethical and competent services.

183
Q

Sole Proprietorships

A

A business structure where a single individual owns and operates a business

184
Q

Special Needs

A

Planning for

185
Q

Split-the-Pot Approach

A

A financial strategy dividing available funds among multiple goals or beneficiaries in proportionate shares.

186
Q

Standard Deviation

A

A statistical measure of investment volatility

187
Q

Standard of Living

A

A measure of wealth

188
Q

State Death Taxes

A

Taxes levied by individual states on the estate or inheritance

189
Q

Statute of Frauds

A

A legal doctrine requiring certain types of contracts to be in writing to be enforceable

190
Q

Structured Settlements

A

A financial arrangement in which a person receives a series of tax-free periodic payments over time as compensation for a legal claim.

191
Q

Tax Basis

A

The original value of an asset for tax purposes

192
Q

Terminal Illness

A

Planning for

193
Q

Terrorism and Insurance

A

Insurance policies addressing risks and coverage related to terrorism

194
Q

Time Value of Money

A

The principle that a specific amount of money today has a different value than the same amount in the future

195
Q

Annuities

A

Financial products that provide a series of periodic payments to the holder over time

196
Q

Annuity Due

A

An annuity where payments are made at the beginning of each period.

197
Q

Inflation/Growth Adjusted

A

An analysis adjusting for inflation or growth rates to maintain purchasing power or real value over time.

198
Q

Ordinary Annuity

A

An annuity where payments are made at the end of each period.

199
Q

Serial Payments

A

Regular payments that increase over time

200
Q

Torts

A

Legal wrongdoings that result in injury or harm

201
Q

Trust Protector

A

A fiduciary role in a trust arrangement with the authority to oversee or modify trust provisions

202
Q

Trusts

A

Legal arrangements where one party holds and manages property for the benefit of another

203
Q

Truth in Lending

A

A federal law requiring lenders to disclose credit terms and costs to borrowers

204
Q

UGMA (Uniform Gifts to Minors Act)

A

Legislation allowing minors to own assets under the supervision of a custodian

205
Q

Umbrella Liability Insurance

A

Additional liability coverage that extends beyond the limits of underlying policies like home or auto insurance.

206
Q

Uniform Transfers to Minors Act (UTMA)

A

Similar to UGMA

207
Q

Unit Trusts

A

Investment vehicles that pool funds from investors to purchase a diversified portfolio of securities

208
Q

Wills

A

Legal documents specifying how a person’s assets should be distributed after death.

209
Q

Codicil

A

A legal document used to make changes or additions to an existing will.

210
Q

Components

A

The key parts of a will

211
Q

Contesting

A

The legal process of challenging the validity of a will

212
Q

Modification

A

The process of updating or changing a will to reflect changes in circumstances or preferences.

213
Q

Requirements

A

Legal criteria that a will must meet to be valid

214
Q

Revocation

A

The act of canceling or voiding a will

215
Q

Safeguarding

A

The practice of securely storing a will to prevent tampering

216
Q

Zero Coupon Bond

A

A bond that does not make periodic interest payments and is instead sold at a discount

217
Q

Accumulation

A

The phase in which an individual is actively contributing to and growing their investment portfolio or retirement accounts

218
Q

Adjusted Rate of Return (ARR)

A

The rate of return that has been adjusted for taxes

219
Q

ADV

A

See Form ADV

220
Q

Agency

A

A fiduciary relationship where one person

221
Q

Alternative Dispute Resolution

A

A means of resolving disputes outside of court through methods such as mediation or arbitration

222
Q

Alternative Minimum Tax (AMT)

A

A parallel tax system designed to ensure that individuals and corporations with high incomes pay a minimum amount of tax by limiting certain deductions and credits.

223
Q

American College

A

An accredited institution providing education and certification programs for professionals in financial planning

224
Q

American Opportunity and Lifetime Learning Credit

A

A tax credit available for qualified higher education expenses

225
Q

American Opportunity Tax Credit

A

A tax credit available for the first four years of postsecondary education

226
Q

Amortization

A

See Mortgage Loans

227
Q

Annual Percentage Rate (APR)

A

See Mortgage Loans

228
Q

Future Value Annuity

A

The projected value of an annuity at a specific future date

229
Q

Joint and Survivor Annuity

A

An annuity type that continues to provide payments for the lifetimes of two individuals

230
Q

Period Certain Annuity

A

An annuity that guarantees payments for a specified period

231
Q

Present Value Annuity

A

The current value of future annuity payments

232
Q

Time Value Annuity

A

The concept that money available now is worth more than the same amount in the future

233
Q

Arbitration (See Alternative Dispute Resolution)

A

A process where disputes are resolved by one or more arbitrators who provide a binding decision

234
Q

Asset Allocation

A

The process of dividing an investment portfolio among different asset categories

235
Q

At Risk Rules

A

Tax rules that limit the amount of loss a taxpayer can claim to the amount they have actually invested or are at risk of losing in an activity

236
Q

Automobile Insurance

A

Insurance coverage for vehicles that provides financial protection against physical damage

237
Q

Bank Geographic Structure

A

The physical and organizational arrangement of a bank’s branches

238
Q

Bankruptcy

A

A legal process through which individuals or businesses who are unable to repay their debts may seek relief. Bankruptcy can involve reorganizing debts or liquidating assets to pay creditors

239
Q

Banks

A

in the Economy

240
Q

Basis

A

The original value or cost of an asset for tax purposes

241
Q

Behavior

A

Stereotypical

242
Q

Best Interest

A

A fiduciary standard requiring financial professionals to act in the best interest of their clients by providing recommendations and services that align with the client’s financial goals

243
Q

Zero Coupon Bonds

A

Bonds that do not pay periodic interest. Instead

244
Q

Book and Records - Inspections

A

Regulatory inspections that involve reviewing a financial firm’s books and records to ensure compliance with legal and regulatory requirements

245
Q

Brochure Rule

A

A regulatory requirement mandating that investment advisers provide clients with a written disclosure document (brochure) that outlines the adviser’s services

246
Q

Broker-Dealers Federal Regulation

A

Oversight of broker-dealers at the federal level

247
Q

Broker-Dealers State Regulation

A

Broker-dealers are also regulated by state securities administrators

248
Q

Brokerage Firms

A

Financial firms that facilitate the buying and selling of securities on behalf of clients

249
Q

Budgeting

A

The process of creating a financial plan for allocating income towards expenses

250
Q

Bunny Bonds

A

Bonds that allow interest to be reinvested in additional bonds rather than being paid out as cash. This feature can help investors compound their returns over time.

251
Q

Business Cycle

A

The economic cycle of expansion

252
Q

Business Entities

A

Different organizational forms for conducting business

253
Q

C Corporations

A

A type of corporation in which the business is taxed separately from its owners. C corporations are subject to corporate income tax

254
Q

Capital Gains (Losses)

A

The profit (or loss) realized when an asset is sold for more (or less) than its original purchase price. Capital gains are subject to tax

255
Q

Carryover Basis

A

A tax basis of an asset received as a gift

256
Q

Certified Financial Planner Board of Standards (CFP Board)

A

The professional regulatory organization that sets standards for certified financial planners

257
Q

Financial Planning Practice Standards

A

Guidelines set by the CFP Board to establish the process and standards that CFP® professionals should follow when providing financial planning services

258
Q

Bequests

A

Gifts made to charitable organizations through a will or estate plan. Bequests allow individuals to make a charitable contribution as part of their legacy.

259
Q

Charitable Gift Annuity

A

A contract between a donor and a charity in which the donor contributes assets and

260
Q

Charitable Lead Trust

A

A trust in which a charity receives income payments for a set period

261
Q

Charitable Remainder Trust

A

A trust that provides income to the donor or another beneficiary for a specific time

262
Q

Donor Advised Funds

A

A charitable giving vehicle where a donor contributes assets

263
Q

Outright Gifts

A

Direct donations made to a charity

264
Q

Percentage Limitations

A

IRS limits on the deductibility of charitable contributions based on a percentage of a taxpayer’s adjusted gross income (AGI)

265
Q

Pooled Income Fund

A

A charitable fund in which multiple donors contribute assets that are pooled together

266
Q

Private Foundation

A

A nonprofit organization typically funded by an individual

267
Q

College for Financial Planning

A

An educational institution offering professional certification and degree programs for financial professionals

268
Q

College Funding

A

See Education Funding

269
Q

Commercial Flood Insurance

A

Insurance coverage that protects businesses against losses due to flooding

270
Q

Community Property

A

A legal framework in some states in which property acquired during marriage is considered equally owned by both spouses

271
Q

Consumer Credit Protection Act of 1968

A

A federal law designed to safeguard consumers by requiring clear disclosure of loan terms

272
Q

Contracts

A

Legally binding agreements between two or more parties

273
Q

Coverdell Education Savings Accounts

A

Tax-advantaged accounts designed to help families save for education expenses

274
Q

Credit and Debt Management

A

The process of managing credit responsibly to build creditworthiness

275
Q

Credit Counseling

A

A service that helps consumers address financial issues

276
Q

Credit Reports

A

Summaries of a consumer’s credit history

277
Q

Credit Scoring

A

A system used by lenders to evaluate an individual’s credit risk based on credit history and current debt. Scores impact loan eligibility

278
Q

Credit Unions

A

Member-owned

CFP - Steps in the Financial Planning Process (9 decks)

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