Miscellaneous

Question 1

GROOVE in financial planning

Answer 1

• Goal
• Risk
• Opportunity
• Objective
• Vulnerability
• Evaluation

Useful in looking at a client’s planning needs.

Question 2

Financial planning RABIIT

Answer 2

• Recommendation
• Assumptions
• Basis
• Independent, or
• Implement with another item
• Timing

Question 3

What’s the maximum timeframe for something to be considered current liability?

Answer 3

Current liabilities come due in 12 months

Question 4

Three most important AMT preference items to know….

Answer 4

1. Interest on private activity bonds (not from 2009-2010) as an add-back item (POSITIVE)
2. Excluded gains from 1202 stock (issued before Feb. 2009 or between 2/09-09/10) (POSITIVE
3. ISOs (NEGATIVE)

Question 5

SS Insured Credit Amounts

Answer 5

For SS, being currently insured requires 6 of the last 13 credits. Being fully insured requires 1 credit per year since age 21 with a minimum of 6 and a maximum of 40 (age minus 22 = credits needed with a minimum of 6)

Question 6

What is A hicd, cbi, dc, ci, c, CFP?

Answer 6

1. Act with honesty, integrity, competence, and diligence.
2. Act in the client’s best interests.
3. Exercise due care.
4. Avoid or disclose and manage conflicts of interest.
5. Maintain the confidentiality and protect the privacy of client information.
6. Act in a manner that reflects positively on the financial planning profession and CFP® certification

Question 7

What are the coverage amounts on an HO form for parts B, C, and D?

Answer 7

Property insurance:

• B = 10% of A
• C = 50% of A
• D = 20% of A, 40% of C (on HO-6)