Tax Planning
This type of tax-advantaged account allows you to contribute after-tax dollars, but all qualified withdrawals in retirement are tax-free.
Roth IRA (or Roth 401k)
What is the tax treatment of a Traditional IRA?
Tax Deferred
This common investing phrase describes the strategy of "not putting all your eggs in one basket" to reduce unsystematic risk.
Diversification
This "style" of questioning is designed to prevent one-word answers (like Yes or No) and encourages clients to elaborate on their values and life goals.
Open-Ended Questions
On the hit show Shark Tank, what do the Sharks call the percentage of a company they receive in exchange for their investment?
Equity
This is the standard deduction for a single person in the 2026 tax year
$16,100
This type of retirement plan is funded entirely by the employer and promises a specific monthly "paycheck" to the employee for life after they retire.
Defined Benefit Plan (or Pension)
This metric measures an investment's volatility relative to the overall market. A value of 1.0 means it moves exactly with the market.
Beta
To help a client overcome the "friction" of manual saving and the temptation to spend, an advisor might suggest what?
Automated Deposits or Transfers
In the movie The Wolf of Wall Street, Jordan Belfort made his initial fortune by selling these low-priced, highly volatile stocks.
Penny Stocks
If a client sells a stock they’ve held for exactly 12 months, is the gain taxed at the Short-Term or Long-Term Capital Gains rate?
Short-Term (Must be 12 months + 1 day for Long-Term)
Scenario: A worker leaves their company at age 55. They take a withdrawal from their 401(k). Are they subject to the 10% early withdrawal penalty?
No (The "Rule of 55")
This specific type of risk (also called Market Risk) cannot be diversified away because it affects the entire market.
Systematic Risk
During a discovery meeting, an advisor avoids interrupting and uses body language/verbal cues to show they are fully present. This fundamental skill is known as...
Active Listening
This billionaire, is currently the wealthiest person in the world.
Elon Musk
This tax rule prevents parents from shifting large amounts of investment income to their children to be taxed at lower rates. In 2026, it applies to unearned income over $2,700.
The Kiddie Tax
For a person born in 1960 or later (which includes almost everyone in this room), what is the official "Full Retirement Age" (FRA) to receive 100% of their Social Security benefit?
67
This term describes the extra return investors demand for taking on the risk of the stock market over a "Risk-Free" investment.
Market Risk Premium
A client treats a $5,000 tax refund like "fun money" for a vacation, even though they have high-interest debt. This is the tendency to treat money differently based on its source.
Mental Accounting
In the 1996 movie Jerry Maguire, this 4-word catchphrase became a legendary finance mantra after Cuba Gooding Jr. forced Tom Cruise to scream it.
"Show Me The Money!"
Calculation: A client is in the 24% tax bracket. They can take a $1,000 Tax Credit OR a $4,000 Tax Deduction. Which choice saves them more money on their tax bill?
The Tax Credit ($1,000 savings vs. $960 from the deduction: $4,000 * 0.24)
What is the lifetime limit per beneficiary for a 529-to-Roth rollover?
$35,000
Calculation: Using the CAPM formula (Rf + (β x MRP)), find the expected return for a stock with a Beta of 1.5, an Market Risk Premium of 6%, and a Risk-Free Rate of 4%.
13% (4% + [1.5 x 6%])
This is a "mental shortcut" where a client judges the probability of a market crash based only on how easily they can recall a recent one, rather than looking at long-term historical data.
Availability Heuristic
He is responsible for the largest Ponzi scheme in history, defrauding investors of an estimated $64 billion before being caught during the 2008 financial crisis.
Bernie Madoff