General Principals Flashcards
(47 cards)
What are the 4 Beta fish
AOC
LLC
COVERDELL
529
Fiscal Policy is set by who?
Congress
Fiscal Policy does what?
Tax and Spend
Monetary Policy is controlled by who?
The Fed
4 levers of Monetary Policy (The Fed)
“DORM”
D - Discount rate
O - Open market operations
R - Reserve require
M - Margin requirements
Registration requirements for RIA’s
- Under $100M AUM: register w/state
- Over $110M AUM: register w/SEC
Exceptions to register as an RIA
“TABLE”
Teacher
Accountant
Banker
Lawyer
Engineer
Which states get a full step in when 1 dies?
Community property (“communist property”)
- California
PITI - max %
28% of GROSS income
- principal
- interest
- taxes (only for home)
- insurance (only for home)
Total monthly debt max
36% of GROSS
What is all included in current ratio
Formula:
“Current Assets / Current Liabilities”
Assets:
- Cash
- marketable securities
- ARs
- Inventory
Liabilities:
- Cash owed
- Credit card
- AP’s
- Taxes payable
What are the 7 steps for financial planning?
(Write out with acronym)
“Uber Is A Drunk Persons Immediate Mode (of transportation)”
- Understanding financial position
- Identifying goals
- Assess current course of action and other alternatives
- Develop a plan
- Present the plan
- Implement the plan
- Monitor the plan
How to Calc remaining principal payment after # of years
1) TVM
2) 1, INPUT, AMORT
3) =, =, =
What % do colleges expect parents to use of their assets?
5.64%
(Small business assets are excluded if parent owns over 50%)
When is a series 7 vs a series 6 needed?
Series 6:
- Can sell mutual funds, UITs (primary offerings only), and variable life/annuities
- Cannot sell individual stocks or ETFs
Series 7:
- Can sell all securities except comodities and certain options
Punitive Damages
Wrongful death = tax free
Otherwise = taxable (confirm???)
Compensatory damages
Principal = tax free
Any growth = taxable
(Example: age discrimination)
Bankruptcy (means test)
- If avg net income > $10k/mo for past 60 months: ch 7 is not an option
- If avg net income < $6k/mo for past 60 months: Ch 7 is allowed
In between: can file ch 7 IF total debt <25% of unsecured debt
3 forms of bankruptcy
1) Ch 11: exceed debt limits or do not have regular income so do not qualify under ch 13
2) Ch 13: reorganization. Payments reduced to be manageable. Creditors cannot harass.
3) Ch 7: Wipes out debt but can claim state or Fed exemptions to keep certain assets (like house)
Express authority
Written
Implied authority
The public believes you have authority due to signage / rate books / etc
Apparent authority
Happens due to negligence of the principal in allowing a terminated agent to have authority due to PAST authority
(Applications were not confiscated for example)
FINRA registration process (4 steps)
1) associates with BD firm
2) registers with finra through the BD via U4 form
3) pass exam
4) CRD system makes registration uniform among states
(Disciplinary action is maintained on CRD system. Info reported through the U4 form)
Investment advisors SEC registration process (3 things)
1) Files ADV form
2) Filing fee of $150
3) Submit ADV part 1 and Sch I updated annually
(To cease operations: ADV-W)
