WEALTH DEPARTMENT
What two professional areas does VESTA connect for many clients?
Tax/CPA services and wealth/financial planning.
In simple terms, what is Cetera’s role for the wealth department?
Cetera supports financial advisors through broker-dealer, advisory, compliance, technology, and investment platforms.
What does IRA stand for?
Individual Retirement Account.
What does “advisory account” usually mean?
An account where the advisor provides ongoing advice or management, often for an advisory fee.
What is retirement planning?
Planning how someone will save, invest, and create income for the future.
Why is it helpful for tax professionals and wealth advisors to communicate?
Tax decisions and investment/retirement decisions affect each other.
In simple terms, what is Pershing’s role?
Pershing helps with custody, clearing, trading, settlement, account records, and reporting.
What is the biggest difference between a Traditional IRA and a Roth IRA?
Traditional IRA money may be taxed later when withdrawn; Roth IRA money is contributed after tax and may be tax-free later if rules are met.
What does “direct business” usually mean?
An investment or product held directly with a fund company, insurance company, or sponsor rather than inside a standard brokerage/advisory account.
Why is starting early helpful for retirement savings?
More time allows money to potentially grow and compound.
Name one client decision that could involve both a CPA and a wealth advisoRR
Roth conversion, retirement withdrawals, business sale, charitable giving, capital gains, tax-loss harvesting, estate planning.
Who generally holds or safeguards the client’s investment assets: the advisor or the custodian?
The custodian.
What is a taxable brokerage account?
An investment account that is not a retirement account; interest, dividends, and gains may be taxable.
How are advisory accounts often charged?
Usually through an ongoing advisory fee, often based on assets under management.
What does “compound growth” mean?
Earnings can generate more earnings over time.
Why might a tax return be useful to a wealth advisor?
It shows income, deductions, capital gains, retirement contributions, business income, and possible planning opportunities.
Why does the wealth department need a broker-dealer or advisory platform?
To support regulated investment business, compliance, trading, supervision, account access, and advisor operations.
What is a joint account?
An account owned by two or more people.
Give one example of something that might be direct business.
Direct-held mutual fund, annuity, 529 plan, insurance product, or certain retirement/product accounts.
What is one reason retirement planning should include taxes?
Different accounts and withdrawals can be taxed differently
What is one way an intern can help the wealth team without giving advice?
Organizing documents, preparing meeting materials, updating data, taking notes, checking forms, or helping with client service tasks.
What is the difference between the advisor and the custodian?
The advisor gives advice and manages the client relationship; the custodian holds assets and processes account activity.
What is a beneficiary designation?
Instructions naming who receives an account after the owner dies.
Why is it important to know whether an account is advisory or direct business?
It affects paperwork, fees, reporting, service process, supervision, and how account changes are handled.
Name three things a retiree may need to plan for.
Income, taxes, healthcare, Social Security, Medicare, housing, inflation, investments, estate planning.