1|Page
AWMA Exam 1 ||Verified Exam!!|| Most Recent Exam
Actual Complete Real Exam Questions And Correct
Answers (Verified Answers) Already Graded A+ |
Newest Exam!!!
If a high net worth (HNW) business owner came to your
office, what would you expect her financials to show, as
compared to a HNW non-business owner?
A) About the same income, with more assets and higher
net worth
B) About the same income with more assets, yet lower net
worth
C) Higher income, with fewer assets and lower net worth
D) Lower income, with fewer assets and lower net worth -
Answer-A) Income is similar between all HNW
professions; however, assets and net worth include
business assets, so more assets and higher net worth are
common for HNW business owners. Many business
owners are exposed to a large amount of unsystematic
risk because a significant amount of their capital is often
tied up in their business. Mod 1
,2|Page
When considering the social impact goals of a high net
worth client, wealth planners should expect those clients
to
A)not want their planner to be involved in the charitable
concern.
B)want their children to also develop charitable
tendencies.
C) only want the charitable concern in order to reduce tax
exposure.
D) overwhelmingly donate assets and not volunteer their
time. - Answer-B) The reasons high net worth individuals
make charitable donations are largely humanitarian in
nature—only half of these individuals donate to reduce tax
exposure as a secondary concern. It is important for
advisers to be aware of and research any social impact
their clients find important. In addition, the preferred
methods of accomplishing social impact in the U.S., as
compared to worldwide, are more religious and also
include more aspects that are nonfinancial, such as
volunteerism. Mod 1
,3|Page
As compared to younger high net worth individuals, older
wealthy individuals describe their financial needs as more
geared toward
A)managing cash and credit.
B) digital meetings.
C)investing outside of equities.
D) obtaining and using credit. - Answer-A) Older clients
describe their needs as straightforward: managing cash
and credit, and growing investments. Younger clients
indicate more complex needs, such as a reluctance to
invest in equities, interest in digital meetings, and a
propensity toward using credit. Mod 1
Which one of the following top overall concerns was the
same for those wealthy clients under 30 and above 60?
A)Understanding of risk tolerance
B)Fee transparency
C)Strong investment performance
D)Ensuring children's well-being - Answer-C) The top
wealth concerns of wealthy clients under 30 and above 60
differ greatly, but one area of agreement is wanting strong
, 4|Page
investment performance. Under-30 clients generally want
efficiency and transparency—they want to understand
what is being proposed and the costs and risks involved.
They also will not hesitate to go to other individuals or
sources in order to better understand their options. This is
not the case with a typical over-60 client, who will work
with just one adviser whom they trust, and will want that
adviser to have a strong understanding of their needs and
risk tolerance. In addition, younger investors are more
concerned with child care and older investors with
obtaining advice about risk tolerance. Mod 1
The top reasons for a wealthy client to leave an adviser
have been found to be in the general category of
A)poor firm notoriety.
B)high fees.
C)poor investment advice.
D) poor communication. - Answer-D) The top reasons a
wealthy client would leave an adviser, with the most
egregious reason being first, are: not returning phone calls
in a timely manner, not being proactive with contact, not
providing good ideas and advice, and not returning emails
in a timely manner. Mod 1
AWMA Exam 1 ||Verified Exam!!|| Most Recent Exam
Actual Complete Real Exam Questions And Correct
Answers (Verified Answers) Already Graded A+ |
Newest Exam!!!
If a high net worth (HNW) business owner came to your
office, what would you expect her financials to show, as
compared to a HNW non-business owner?
A) About the same income, with more assets and higher
net worth
B) About the same income with more assets, yet lower net
worth
C) Higher income, with fewer assets and lower net worth
D) Lower income, with fewer assets and lower net worth -
Answer-A) Income is similar between all HNW
professions; however, assets and net worth include
business assets, so more assets and higher net worth are
common for HNW business owners. Many business
owners are exposed to a large amount of unsystematic
risk because a significant amount of their capital is often
tied up in their business. Mod 1
,2|Page
When considering the social impact goals of a high net
worth client, wealth planners should expect those clients
to
A)not want their planner to be involved in the charitable
concern.
B)want their children to also develop charitable
tendencies.
C) only want the charitable concern in order to reduce tax
exposure.
D) overwhelmingly donate assets and not volunteer their
time. - Answer-B) The reasons high net worth individuals
make charitable donations are largely humanitarian in
nature—only half of these individuals donate to reduce tax
exposure as a secondary concern. It is important for
advisers to be aware of and research any social impact
their clients find important. In addition, the preferred
methods of accomplishing social impact in the U.S., as
compared to worldwide, are more religious and also
include more aspects that are nonfinancial, such as
volunteerism. Mod 1
,3|Page
As compared to younger high net worth individuals, older
wealthy individuals describe their financial needs as more
geared toward
A)managing cash and credit.
B) digital meetings.
C)investing outside of equities.
D) obtaining and using credit. - Answer-A) Older clients
describe their needs as straightforward: managing cash
and credit, and growing investments. Younger clients
indicate more complex needs, such as a reluctance to
invest in equities, interest in digital meetings, and a
propensity toward using credit. Mod 1
Which one of the following top overall concerns was the
same for those wealthy clients under 30 and above 60?
A)Understanding of risk tolerance
B)Fee transparency
C)Strong investment performance
D)Ensuring children's well-being - Answer-C) The top
wealth concerns of wealthy clients under 30 and above 60
differ greatly, but one area of agreement is wanting strong
, 4|Page
investment performance. Under-30 clients generally want
efficiency and transparency—they want to understand
what is being proposed and the costs and risks involved.
They also will not hesitate to go to other individuals or
sources in order to better understand their options. This is
not the case with a typical over-60 client, who will work
with just one adviser whom they trust, and will want that
adviser to have a strong understanding of their needs and
risk tolerance. In addition, younger investors are more
concerned with child care and older investors with
obtaining advice about risk tolerance. Mod 1
The top reasons for a wealthy client to leave an adviser
have been found to be in the general category of
A)poor firm notoriety.
B)high fees.
C)poor investment advice.
D) poor communication. - Answer-D) The top reasons a
wealthy client would leave an adviser, with the most
egregious reason being first, are: not returning phone calls
in a timely manner, not being proactive with contact, not
providing good ideas and advice, and not returning emails
in a timely manner. Mod 1
