1. You just obtained a client.This client owns several properties and spends their time managing the properties. Their net worth is over 7 figures. The client has minimal funds in his bank account. After meeting with the client and listening to his concerns you tell the client

A.you have concerns about his tax planning

B.you have concerns about his liquidity

C.you have concerns about his retirement strategies

D.you have concerns about his long term care planning

2. For UGMA/UTMA accounts, all of the following statements are true except:

they are taxed at child's rate

they are custodial accounts set up in a child's name

they are an irrevocable gift for the child

they can be used for any purpose by the child

3. When it comes to budgeting,people will spend their money where ever they want.You budgetary analysis for the client and show a negative cash with significant room improvement in several areas.Your client does NOT take any of your recommendations.

What could have possible went wrong?

A.The determination of a client's risk tolerance level is improperly done

B.Nothing.The client just likes to spend money

C.There was a miscommunication from the planner to the client.Planners should do their best to understand behaviors.

D.The client did not like budgets.

E.A andB

4. Major drawbacks of Section 529 plans are:

IYou must start early to derive significant benefits

II They could result in a decrease in the amount of the financial aid

III Once you join a plan, you cannot open an Educational IRA

The correct answer is:

A.I and II

B.II and III

C.I and III

D.I, II and III

5. In buying property casualty insurance

1. insure against significant risks and bear small risks
2. compare rates before making a commitment
3. increase risks through preventative measures
4. review coverage periodically

A.All the statements are correct

B.Only IV is correct

C.III and IV

D.II, III and IV are correct

E.III andIV