Fundamental/Insurance planning Flashcards
(22 cards)
The CFP mark can be used as follows:
Successsful Student, CFP®️
For business card, letter or email closing:
Successful Student
CERTIFIED FINANCIAL PLANNER™️ (all caps)
Conduct deemed unacceptable and will Always bar an individual
Felony conviction for theft, embezzlement, or other financially based crime
Felony conviction for tax fraud or other tax related crimes
Revocation of financial professional license unless administrative
Felony conviction of murder or rape
Felony conviction of other violent crime <= 5yrs
Conduct deemed a presumptive bar and presumed unacceptable
2 or more personal or business bankruptcies
Revocation of non-financial license unless administrative
Suspension of financial professional license unless administrative
Felony conviction for non-violent crimes <=5yrs
Felony conviction for violent crimes other than murder or rape >=5yrs
An investment advisor under the Investment Advisors Act of 1940
Someone who is the business of providing advice for securities for compensation.
ABC’s - Advice, Business, Compensation
Exceptions to registration with SEC
TABLEs are incidental - Teachers, Accountants, Brokers, Lawyers, and Engineers
Exemptions from Registration with SEC
VIPs are SaFE from exemptions - Venture capital, Insurance companies, Private funds <=$150M, home State, Foreign advisors, and securities not on a national Exchange
The Brochure Rule requires written disclosure to every client of the following:
Advisory services provided and fees for those services
Types of securities
Education of advisor
Participation/interest in securities trx
Given to client B4 or at time enter into contract
Written,plain English summary ADV part 2A and B
Summary of material changes provided annually
Either deliver the updated brochure or offer to deliver an updated copy
FINRA
Register on U4
Must pass securities exam to sell securities
S6-Mfunds,UITs,VUL and annuities
Must have state ins license to sell VUL or annuities
S7-sell all except commodities and futures
Accredited Investor
1,2,3 Test
* $1M nt worth
* $200k of income if filing single
* $300k of spousal income
Shift in Demand Curve
Incr/Decr in
* Income
* Taxes
* Savings Rate
* Disposable Income
Anything that causes discretionary income to increase will:
Shift the demand curve up and to the right
Anything that causes discretionary income to decrease will
Shift the demand curve down and to the left
Shift in the Supply curve
Due to changes in:
Technology
Competition
Anything other than price
Anything that causes increase in production costs or supply to decrease will:
Shift Supply curve up and to the left.
Equilibrium is
The price at which the quantity demanded equals the quantity supplied.
Anything that causes production to improve will:
Shift the Supply curve down and to the right
Substitutes
Products that serve a similar purpose
A price change in one product changes the quantity demanded for another product
Complements
Products that are consumed jointly
A price change in one product changes the quantity demanded for another product
Price elasticity
Measures the change in quantity demanded, relative to changes in price
Practice Standards for the Financial Planning Process
Uber Is A Drunk Person’s Immediate Motor Vehicle
Understand financial circumstances
Identify and select goals
Analyze course of action and alt
Develop recommendations
Present recommendations
Implement recommendations
Monitor the plan
Registered Investment Advisors must register with
-state if AUM <$100M
-SEC if AUM >$110M
-either if between $100M and $110M
-CANNOT use initials RIA after name
-CANNOT assign advisory contracts without clients consent
Fiduciary Duty equals
Duty of loyalty
+
Duty of care
+
Duty to follow client instructions
(See handbook pg 13)
