eQuizShow
Finance 101 Review
JeffNat
Question: What is a "RD"?
Answer: Regional Director
Question: What FINRA licenses are required of all JeffNat sales team members?
Answer: Series 6 & 63
Question: What year did Jefferson National launch Monument Advisor?
Answer: 2006
Question: What is the name of the board room?
Answer: King Moonracer
Question: Name the three members of the "Telebank team", now management team for Jefferson National?
Answer: Mitch Caplan, David Lau, Larry Greenberg
Investing
Question: What are the two types of retirement investment accounts?
Answer: Qualified and Non-Qualified
Question: Give one example of a Qualified Account.
Answer: 401k, IRA
Question: The process of generating earnings on asset's reinvested earnings?
Answer: Compounding
Question: What does tax-deferred mean?
Answer: Pay taxes at withdrawal.
Question: Do we at JeffNat typically see more Non-Qualified money or Qualified money? (Bonus: Why?)
Answer: Non-qualified - investors already getting tax-deferral through Qualified Accounts. No need to pay an additional fee for same tax deferral benefit.
Asset Classes
Question: What are the three traditional asset class types?
Answer: Stocks, bonds, and cash.
Question: Investment vehicle - gives investor diversification, professional management, economies of scale.
Answer: Mutual Funds
Question: Low correlation to traditional asset classes.
Answer: Alternatives
Question: Blend between stocks and mutual funds. (Hint - SPDR)
Answer: ETFs
Question: Name two asset classes that are tax-INefficient.
Answer: Bonds, REITs, alternatives...
Taxes
Question: Name two of the three tax rates.
Answer: Ordinary income, short term capital gains, long term capital gains.
Question: What does tax-efficiency mean?
Answer: An attempt to minimize tax liability of investments.
Question: The practice of holding asset classes in the most tax-efficient location.
Answer: Asset Location
Question: $10 cost basis (initial investment, post-tax)
+ $10 gains
$20 total
How much of the $20 total will be taxed?
Answer: $10 gains
Question: Of the three tax rates, which is the lowest?
Answer: Long-term capital gains
Annuities
Question: What are the two phases of an annuity?
Answer: Accumulation and Annuitization.
Question: Name two cons/disadvantages of traditional annuities?
Answer: Costly, surrender charge, long surrender period, inflexible, high advisor commissions...
Question: What does M&E stand for?
Answer: Mortality & Expense
Question: What type of an annuity might be a good fit for a very conservative/risk averse client?
Answer: Fixed Annuity
Question: What does "fee drag" refer to?
Answer: Asset-based (%) fees on traditional annuities. As the contract size increases, the fee increases with it.