Acronyms Flashcards
(30 cards)
Insurance DIVIDEND Options
CRAPO
Cash
Reduce Premium
Accumulate w/ Interest
Paid Up Additions
One Year Term / 5th Divided
Insurance NON FORFEITURE Options
“Can’t Even Pay”
Cash
Extended Term
Paid Up Reduced Amount
Insurance - Transfer for Value EXCEPTIONS
“I Cee Dead People”
Insured
Corporation
Divorce
Partner(ship)
Investment SYSTEMATIC Risk
PRIME
Purchasing Power Risk
Reinvestment Risk
Interest Rate Risk
Market Risk
Exchange Rate Risk
Investment MUNI BOND Risk
DRIP
Default Risk
Reinvestment Risk
Interest Rate Risk
Purchasing Power Risk
Investment OPTIONS for Intrinsic Value
COME
Call Options = Market - Exercise
POEM
Put Options = Exercise - Market
In the money? Can’t have Negative Intrinsic Value
Investment Gov’t BOND Purchase
Interest Rates FALL(EN) then LENGTHEN maturity
Interest Rates UP(S) then SHORTEN maturity
Retirement NSO vs ISO
NSO (Non Qualified Stock Option)
ISO (Incentive Stock Option)
EGGS
Exercise to Sale ✔️ 1 year
Grant to Sale ✔️ 2 years
Taxes - SCHEDULE A (Deductions)
“My Tax Is Calculated Correctly”
Medical (if above 7.5% AGI)
Taxes You Paid (SALT)
Interest You Paid
Charity
Casualty / Theft (If Fed Disaster)
Taxes MACRS Deduction
CAT CORN
1245 Property
(5 years) Computer, Auto, Truck
(7 years) Office Furniture
1250 Property
(29 Years) Residential Property
(39 Years) Non-Res (Commercial)
179 Deduction all at once on 1245 property only
GP - CFP STEPS
Uber Is A Drunk Persons Immediate Mode (of transportation)
Understand
Identify
Analyze
Develop
Present
Implement
Monitor
Investment GOV’T Money Supply
B.E.S.T.
Buying = Expansionary
Selling = Tightening
Estate - Always Included In PROBATE
ICE T
Individually Owned
Community Property (1/2)
Estate as Beneficiary
Tenants in Common
Estate - Purpose of “C” or QTIP Trust
LAME
Lifetime Income for Spouse
Annual Payments for Spouse
Mandatory Payments to Spouse
Exclusive for the Spouse
Estate - Intra Family Transfer
PIGS Need Income (left side)
Private Annuity
Installment Sale
Grantor Retained Annuity Trust
Self-Cancelling Installment Note (SCIN)
CFP MARKS Allowed
ME C2 P2
Marks
Exam
Certificant
Certification
Practitioner
Professional
GP Economics - MONETARY Policy
DORM
Discount Rate
Open Market OPs/Committee
Reserve Requirement
Margin Requirement
5 Parts of Insurance Contract
DDICE
• Definitions: facts that identify person & property
• Definitions: explain key policy terms
• Insuring Agreement: basic promise of insurance company
• Conditions: duties & rights of both parties
• Exclusions: when insurer will not pay
Retirement/College 3 Steps
Step 1: Inflate (FV)
Step 2: I Need (PV or PMT)
Step 3: Invest (PMT)
Insurance HO Policy
A(bode) - Dwelling
B(ackyard) - Other Structures
C(ontents) - Stuff
D(ays Inn) - Loss of Use
E(nemies) - Liability
F(irst) Aid - Medical
PAP - Personal Auto Policy
A(ll My Fault) - Liability
B(ed) - Medical Payments
C(areless) - Uninsured Motorist
D(amage to your Auto) - Comp/Coll
Medicare
A - Hospital, Nursing Home, Hospice
B - Physician, Outpatient, Home H
D - Drugs (must have A&B)
G - MediGap (out of pocket A&B)
Tax - Schedule 1
Additional Income
Tax - Schedule 2
Additional Taxes
