Misc Flashcards
What bias leads investors to sell winners too quickly and hold on to losers too long?
Disposition effect
(Selling a winner confirms correct choose while selling a loser would confirm incorrect choice)
COBRA periods:
for termination other than gross conduct=
for meets the definition of SS disability =
(The rest are 36 months)
Termination 18
Ss 29
COBRA applies to employers with ___ or more employees
20
How are non qualified distributions from HSAs taxed?
Ordinary income tax plus 20% penalty on entire amount.
What is the waiting period for SS disability?
5 months
What are the 3 basic components that establish premium of LTC policies
Elimination period
Benefit period
Daily benefit amount
LTC benefits are triggered by ______ or ______
2 of 6 ADLs
Substantial cognitive impairment
Name the 6 ADLs
BED COT
Bathing
Eating
Dressing
Continence
On/off toilet
Transferring
If the FMV at the time of a gift is greater than the donor’s basis how is the basis and holding period treated?
Donee uses donor’s basis and assumes donors holding period.
Qualified Long-Term Care Insurance (LTCi) Required features
Benefits payable only for qualified long-term care services.
Contract must be guaranteed renewable.
Contract does not pay or reimburse expenses reimbursable under Medicare.
Contract does not provide for a cash surrender value.
Policy dividends must be applied as a reduction in future premiums or increase future benefits
Limitations and exclusions are prohibited (except pre-existing within 6 months of application).
Contract cannot provide for skilled nursing care only or require prior hospitalization.
Contract must have 2-year incontestable clause for misrepresentation.
Qualified Long-Term Care Insurance (LTCi) Tax benefits:
Benefits are received tax-free.
Premiums paid are a qualified medical expense for the itemized deduction for medical expenses.
Premiums can be paid from a health savings account (HSA).
Premiums paid by employers are tax-free to employees and benefits remain tax-free.
‘Annuity Certain’ is a subcategory within which annuity feature?
Forms of Payment
When do payments start for a single-premium immediate annuity?
Between 1 month and 1 year from the date of purchase.
Dividends on participating life insurance policies may be:
taken in cash.
used to pay a portion of the next premium.
left to accumulate interest.
used to purchase single-premium, paid-up additions.
used to purchase one-year term insurance (fifth dividend option).
If you believe that the use of technical analysis will provide an advantage to an investor over time, which form of the efficient market theory do you adhere to?
No form of the efficient market theory is supportive of the use of technical analysis.
