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.