Int Rates / Risk / Random
Within 20 bps, what is the 10 Year Treasury Yield?
3.22%
The average (after tax) costs a couple will spend on healthcare in retirement.
What percentage of equity returns has SAI been able to keep via our equity tax managed solutions.
95% of equity returns have been captured after taxes using FPP (See Hoskins)
This company ensures that annuity payments are made if an insurance company fails and a new buyer/suitor is not found.
Name a Fidelity Large Value, Large Blend, and Large Growth fund. Must match Morningstar benchmark.
What regions make up the EMEA market and is this considered a developed or emerging market investment.
Europe, the Middle East and Africa. Emerging.
Name 3 of the many qualifying events for COBRA.
The qualifying events for employees are:
The qualifying events for spouses are:
The qualifying events for dependent children are the same as for the spouse with one addition:
Name the 5 pillars in our WPO.
Investment Strategy, Retirement Planning, Income Protection, Asset Protection and Family Conversations
This guaranteed investment is exempt from state and local taxes but is taxed on the federal level.
US Treasury securities
How many years has Danoff been managing the Contrafund? Answer must be within 5 years of date.
28 Years, since 1990
Explain R2
R2 - correlation to a benchmark and how much that benchmark affects the performance.
A measurement of how closely the portfolio's performance correlates with the performance of the fund's primary benchmark index or equivalent. R2 is a proportion which ranges between 0.00 and 1.00. An R2 of 1.00 indicates perfect correlation to the benchmark index, that is, all of the portfolio's fluctuations are explained by performance fluctuations of the index, while an R2 of 0.00 indicates no correlation. Therefore, the lower the R2, the more the fund's performance is affected by factors other than the market as measured by that benchmark index. An R2 value of less than 0.5 indicates that the Annualized Alpha and Beta are not reliable performance statistics.
John Doe, age 40, is eligible for an HSA. John is not married does not have kids. What is the max John can contribute to a HSA in 2018?
$3,450
What is the current yield of our muni SMA strategy? Gross or Net.
2.30% Gross, 1.90% net (as of 6/30/18, only data SA provides)
What is a QLAC and what is the 2018 limit?
A QLAC is a type of deferred income annuity purchased inside of your IRA. You can defer RMDs to as late as age 85 . Max is $130,000 or 25% of your 401(k) or IRA account balance
Name of the new sector created this year.
Communication Services
According to Morningstar, re-balancing adds X amount of return to a portfolio over the long-term. Answer to be within 25bps.
200bps
Jim Lanahan, makes $1,000,000 a year, is single, has no kids, and is 18 years old. What is his marginal tax rate?
37%
Calculate the taxable equivalent yield for a client who:
1) Lives in FL and has a 4% tax-free muni
2) Is in a 10% marginal bracket
Tax Free Muni Rate / (1 - tax rate) = 4.44%
Mary is 40, makes $1,000,000 a year working for a small company who does not offer a retirement plan. Mary is single and uses standard deduction. How much can Mary contribute in an IRA using pre-tax dollars for 2018?
$5,500
Index vs Active. What percentage of Fidelity equity funds outperform their benchmark over a 5 year period? Answer must be within 10%.
72% of Fidelity equity funds managed by the same portfolio manager for at least 5 years are beating their benchmark over the manager's tenure (39 of 54 funds)
https://www.fidelity.com/mutual-funds/investing-ideas/beat-the-benchmark
When was the last time the yield curve inverted? Yield curve defined by 10 yr minus 3 month. Answer to be within 12 months.
Sept 2006.
Side note, Clevelands Fed Reserve says there is a 11% predictability we are going to a recession.
https://www.clevelandfed.org/our-research/indicators-and-data/yield-curve-and-gdp-growth.aspx
Explain the differences between qualified and non-qualified dividends.
Qualified dividends are taxed at capital gains rate. Non-qualified are taxed at ordinary income rate.
A qualified dividend is a type of dividend that is taxed at the capital gains tax rate. Generally speaking, most regular dividends from U.S. companies with normal company structures (corporations) are qualified. For individuals, estates, and trusts, qualified dividends are taxed at the current capital gains rate of 15%. For individuals whose income tax rate is 10% or 15%, then the capital gains tax rate is zero.
In our recent Q3 QMU, Fidelity recently polled corporations and asked what they would do with their tax savings. What percentage of respondents said they would do nothing with the additional savings?
A) 5%
B) 20%
C) 40%
D) 80%
If a client is currently collecting income from a SPIA, AND the insurer goes bankrupt (unable to make payments) AND the company has not been taken over, how much does Florida Life & Health Insurance Guaranty Association guarantee to pay until it finds a suitor?
Annuity in Benefit: $300,000 per contract owner
Explain our Selection Criteria for our Fidelity Fund Picks.
https://www.fidelity.com/mutual-funds/all-mutual-funds/selection-criteria-for-fund-picks
Must be NTF, 3 year performance history, 300MM size for large caps, 200MM mid, 100MM small cap, funds in the bottom three year performance quartile for their respective investment category, as well as funds with a Morningstar rating of 1 or 2 stars, are eliminated.