Financial Planning
What is the recommended minimum size of an emergency fund?
3-6 months of living expenses
Buying a share of stock makes you a partial _____ in a company.
Owner
What does IRA stand for?
Individual Retirement Account
What does “RIA” stand for in the financial planning industry?
Registered Investment Advisor
In which year did the Great Depression begin? (Bonus if you get the day of the week)
October 24th, 1929 (Black Tuesday)
What is the term for the difference between your assets and liabilities?
Net Worth
What does ETF stand for?
Exchange Traded Fund
Which type of retirement plan allows both employees and employers to contribute?
401(k)
What designation is widely considered the “gold standard” for wealth management professionals besides CFP®?
Chartered Financial Analyst (CFA®)
What is Coca-Cola's NYSE ticker symbol?
KO
What are the components of a personal balance sheet?
Assets, Liabilities, Net Worth
What does the acronym “P/E ratio” stand for?
Price-to-earnings ratio
How many federal tax brackets are there currently in the United states?
(10%, 12%, 22%, 24% 32%, 35%, 37%)
Approximately how many wealth managers have earned their CFP® designation, according to the CFP® Board?
100,000+
Who is the current chair of the SEC?
Paul Atkins
In the time value of money formula [ PV=FV/(1+r) ], what does “r” typically represent?
Interest rate/rate of return
What is the name for a type of savings account where you deposit a lump-sum of money for a fixed period in exchange for a fixed, higher interest rate than a traditional savings account?
Certificate of Deposit (CD)
What is the annual contribution limit for an IRA in 2025 (not including catch-up contributions)?
$7,000
What is the term for the legal and ethical duty that requires financial professionals to act in the best interest of their clients?
Fiduciary
How many companies initially formed the Dow Jones Industrial Average?
12
(American Cotton Oil, American Sugar, American Tobacco, Chicago Gas, Distilling & Cattle Feeding, General Electric, Laclede Gas, National Lead, North American, Tennessee Coal and Iron, U.S. Leather and U.S. Rubber.)
What is the name of the government agency that insures bank deposits up to $250,000 per depositor, per bank?
FDIC (Federal Deposit Insurance Corporation)
Diversification helps reduce which type of risk?
Unsystematic
What type of retirement plan is sometimes called a “defined benefit plan”?
The traditional pension plan
Which professional exam must be passed to become a licensed securities representative (broker) in the U.S.?
FINRA Series 7
How is the S&P500 index weighted?
Market-cap weighted (Price * shares)