CRPC YOU GOT THIS STUDY CARDS -
MEMORIZE AND BE FAMILIAR WITH
THESE AND YOU GOT THIS. FRIGGEN
110% PASSING SCORE83
Payments received in the years BEFORE you obtain FRA will be reduced $______for every
$________ earned above the earnings cap. - ANSWERS-
Old-age benefits of Social Security recipients may be reduced if the client earns income from
wages and salary during retirement prior to Social Security's full retirement age. By how much
are the benefits reduced? - ANSWERS-Benefits paid to persons in the years prior to attaining full
retirement age are reduced by $1 for every $2 earned over the limit.
How much tax exempt interest is included in SS? - ANSWERS-ALL Tax-exempt interest is included
in the computation of the taxation of SS benefits.
When seeking investments that have the least amount of risk, what beta do you choose? -
ANSWERS-The absolute lowest one! 0.5
What does the Coefficient of Variation measure? How do you calculate it? - ANSWERS-It
measures a securities risk adjusted return. It allows you to compare 2 securities together, so you
DIVIDE.
DEVIATION DIVIDED BY THE EXPECTED RETURN.
What kind of money comes out of a Roth IRA distribution first? - ANSWERS-Contribution
amounts always come out of a Roth IRA account first, and then conversion amounts, if any.
,When can a distribution be made from a TSA? 4 categories! - ANSWERS-Employee separates
from service, attains age 59 1⁄2, becomes disabled or dies, or qualifies under hardship rules.
Non spring POA remains effective when? - ANSWERS-Remains effective after the principal
becomes incapacitated. NON Spring. NOT springing into action until AFTER.
Springing POA remains effective when? - ANSWERS-Becomes effective when the principal
becomes incompetent or incapacitated. SPRINGING. Springing into action WHEN it happens.
What does Medicare Part A cover and how do you pay for it? - ANSWERS-Covers hospital
charges but patient must pay for all costs in a hospital beyond 150 days.
Provided at no charge. No premium.
What does Medicare Part B cover and how do you pay for it? - ANSWERS-Covers physician
services
Premium charge! If you're eligible for Part A, you've got Part B, BUT FOR A CHARGE!
What makes you eligible for Medicare coverage? - ANSWERS-Over 65 and in a covered
occupation meaning you're getting social security.
What situations are exempt from the 10% penalty on qualified plan distributions made before
age 59 ½? - ANSWERS-Distributions because of death and annuitized payments based on an
individual's remaining life expectancy.
What does "Currently" insured mean and what would you qualify for? - ANSWERS-6 quarters of
coverage (so about 2 years paying into social security) What would you qualify for? ONLY 2
,THINGS! Survivor's benefit for dependent child and Lump-sum death benefit spouse or child.
Your spouse doesn't get anything!
What does "Fully" insured mean and what would you qualify for? - ANSWERS-40 quarters of
coverage (10 YEARS paying into social security!) What would you qualify for? Everything.
Survivor's benefit for your dependent parent who is age 62 or older. Survivor's benefit for
Maxine's spouse or former spouse who is age 60 or older. Dependent child benefits.
How are net LONG term capital gains taxed? - ANSWERS-Subject to a 0% tax rate if the taxpayer
is in a 10% or 15% marginal income tax bracket.
How are net SHORT term capital gains taxed? - ANSWERS-Subject to a taxpayer's ordinary
income tax rate.
What's the long term gain rate applied to long term collectibles? - ANSWERS-A maximum rate of
28% applies to long-term gain on collectibles.
Nonperiodic distributions from an annuity contract prior to the annuity start date? - ANSWERS-
LIFO. It is first considered a taxable interest payment and then a tax-free return of principal. Last
in, first out.
Calculating the exclusion ratio for a fixed annuity? - ANSWERS-The investment in the annuity
contract is divided by the total expected return.
What is the tax treatment for a shareholder participating in a common stock's dividend
reinvestment program? - ANSWERS-The shareholder is treated as if he or she received a cash
dividend equal to the fair market value of the shares purchased under the plan. You literally
bought more stock with the dividends. The dividend you got is treated like cash. The dividend is
cash and you used that cash to buy more stock. The fair market value of the shares purchased is
generally taxed at a 15% or 20% rate.
, What is the valuation date for gifts? - ANSWERS-The valuation date for gifts is when the transfer
is completed!
Joint tenancy with right of survivorship (JTWROS), tenancy by the entirety (TBE), and
community property (CP) are all forms of co-ownership that can be used by who only? -
ANSWERS-A husband and a wife.
Joint tenants or tenants in common are forms of ownership that can be used by who only? -
ANSWERS-Non spouses. Husband and wife can't use these.
Do rights of survivorship property bypasses probate? - ANSWERS-Yes.
Property held as a tenant in common or in which the decedent solely owned his interest does
not what? - ANSWERS-Bypass probate.
The basis that is used in determining gains from mutual funds sales may be calculated by using
what three methods? - ANSWERS-LIFO, Average Cost, Specific Identification method
In a community property state, a person's earnings from their job subsequent (after) to the date
of their marriage will be considered community property. We get married, my earnings then
become yours as well. We "share it". Community property. If I own property before I met you,
that's still just mine. - ANSWERS-Got it?
When gathering data during the retirement planning process, financial goals should be
quantified in what two ways? - ANSWERS-Dollar amounts and established time frames.
The Securities Act of 1933 - ANSWERS-Required that new companies provide full disclosure
through the issuance of a prospectus.
Securities Exchange Act of 1934 - ANSWERS-Created the SEC.
MEMORIZE AND BE FAMILIAR WITH
THESE AND YOU GOT THIS. FRIGGEN
110% PASSING SCORE83
Payments received in the years BEFORE you obtain FRA will be reduced $______for every
$________ earned above the earnings cap. - ANSWERS-
Old-age benefits of Social Security recipients may be reduced if the client earns income from
wages and salary during retirement prior to Social Security's full retirement age. By how much
are the benefits reduced? - ANSWERS-Benefits paid to persons in the years prior to attaining full
retirement age are reduced by $1 for every $2 earned over the limit.
How much tax exempt interest is included in SS? - ANSWERS-ALL Tax-exempt interest is included
in the computation of the taxation of SS benefits.
When seeking investments that have the least amount of risk, what beta do you choose? -
ANSWERS-The absolute lowest one! 0.5
What does the Coefficient of Variation measure? How do you calculate it? - ANSWERS-It
measures a securities risk adjusted return. It allows you to compare 2 securities together, so you
DIVIDE.
DEVIATION DIVIDED BY THE EXPECTED RETURN.
What kind of money comes out of a Roth IRA distribution first? - ANSWERS-Contribution
amounts always come out of a Roth IRA account first, and then conversion amounts, if any.
,When can a distribution be made from a TSA? 4 categories! - ANSWERS-Employee separates
from service, attains age 59 1⁄2, becomes disabled or dies, or qualifies under hardship rules.
Non spring POA remains effective when? - ANSWERS-Remains effective after the principal
becomes incapacitated. NON Spring. NOT springing into action until AFTER.
Springing POA remains effective when? - ANSWERS-Becomes effective when the principal
becomes incompetent or incapacitated. SPRINGING. Springing into action WHEN it happens.
What does Medicare Part A cover and how do you pay for it? - ANSWERS-Covers hospital
charges but patient must pay for all costs in a hospital beyond 150 days.
Provided at no charge. No premium.
What does Medicare Part B cover and how do you pay for it? - ANSWERS-Covers physician
services
Premium charge! If you're eligible for Part A, you've got Part B, BUT FOR A CHARGE!
What makes you eligible for Medicare coverage? - ANSWERS-Over 65 and in a covered
occupation meaning you're getting social security.
What situations are exempt from the 10% penalty on qualified plan distributions made before
age 59 ½? - ANSWERS-Distributions because of death and annuitized payments based on an
individual's remaining life expectancy.
What does "Currently" insured mean and what would you qualify for? - ANSWERS-6 quarters of
coverage (so about 2 years paying into social security) What would you qualify for? ONLY 2
,THINGS! Survivor's benefit for dependent child and Lump-sum death benefit spouse or child.
Your spouse doesn't get anything!
What does "Fully" insured mean and what would you qualify for? - ANSWERS-40 quarters of
coverage (10 YEARS paying into social security!) What would you qualify for? Everything.
Survivor's benefit for your dependent parent who is age 62 or older. Survivor's benefit for
Maxine's spouse or former spouse who is age 60 or older. Dependent child benefits.
How are net LONG term capital gains taxed? - ANSWERS-Subject to a 0% tax rate if the taxpayer
is in a 10% or 15% marginal income tax bracket.
How are net SHORT term capital gains taxed? - ANSWERS-Subject to a taxpayer's ordinary
income tax rate.
What's the long term gain rate applied to long term collectibles? - ANSWERS-A maximum rate of
28% applies to long-term gain on collectibles.
Nonperiodic distributions from an annuity contract prior to the annuity start date? - ANSWERS-
LIFO. It is first considered a taxable interest payment and then a tax-free return of principal. Last
in, first out.
Calculating the exclusion ratio for a fixed annuity? - ANSWERS-The investment in the annuity
contract is divided by the total expected return.
What is the tax treatment for a shareholder participating in a common stock's dividend
reinvestment program? - ANSWERS-The shareholder is treated as if he or she received a cash
dividend equal to the fair market value of the shares purchased under the plan. You literally
bought more stock with the dividends. The dividend you got is treated like cash. The dividend is
cash and you used that cash to buy more stock. The fair market value of the shares purchased is
generally taxed at a 15% or 20% rate.
, What is the valuation date for gifts? - ANSWERS-The valuation date for gifts is when the transfer
is completed!
Joint tenancy with right of survivorship (JTWROS), tenancy by the entirety (TBE), and
community property (CP) are all forms of co-ownership that can be used by who only? -
ANSWERS-A husband and a wife.
Joint tenants or tenants in common are forms of ownership that can be used by who only? -
ANSWERS-Non spouses. Husband and wife can't use these.
Do rights of survivorship property bypasses probate? - ANSWERS-Yes.
Property held as a tenant in common or in which the decedent solely owned his interest does
not what? - ANSWERS-Bypass probate.
The basis that is used in determining gains from mutual funds sales may be calculated by using
what three methods? - ANSWERS-LIFO, Average Cost, Specific Identification method
In a community property state, a person's earnings from their job subsequent (after) to the date
of their marriage will be considered community property. We get married, my earnings then
become yours as well. We "share it". Community property. If I own property before I met you,
that's still just mine. - ANSWERS-Got it?
When gathering data during the retirement planning process, financial goals should be
quantified in what two ways? - ANSWERS-Dollar amounts and established time frames.
The Securities Act of 1933 - ANSWERS-Required that new companies provide full disclosure
through the issuance of a prospectus.
Securities Exchange Act of 1934 - ANSWERS-Created the SEC.
