Filet Minyon has decided she wants to invest in a mutual fund that has stocks with cattle. She plans to invest $100,000 over the next year. Today she…

Filet Minyon has decided she wants to invest in a mutual fund that has stocks with cattle. She plans to invest $100,000 over the next year. Today she meets you with only $10,000. The current load on her purchase is 5.5%. How can you help he

A.You can’t help her but you could get her to utilize a group discount from her defined benefit plan and she will qualify for a discount

B.She will qualify for a discount because $10,000 is enough to get her a discoun

C.She could combine her money with that of your firm and qualify for a discount

D.She could sign a letter of intent and pay a load of 3.5%

E.She could sign a letter of intent and pay a load of 5% ($100,000 ­ $10,000)

Which of the following is true with respect to an IRA?

A.Every IRA must have a trustee or custodian

B.The individual’s interest must be forfeitable

C.Investments may not be made in highly speculative investments

D.Distribution must begin when annuitant is age 70­1/2 or the IRS will impose a penalty tax

E.A, C and D

550 days ago William Tell purchased some Apple stock for $4500. Today he sold the stock for $7500. He currently earns $150,000 year. (33% tax bracket) What taxes will he have to pay; if any? What was his gain; if any?

A.33% taxes on $7500 ­ $4500 = $990 with a 67% gain

B.20% taxes on $7500 = $1500, with no gain because he sold the same stock

C.15% taxes on $7500 = $1,125 and 33% gain

D.$450 in taxes and 67% gain

When an individual reaches age 70­1/2 but does not withdraw the “minimum withdrawal” amount

A.there is a 50% excise tax on the shortfall

B.

there is a 50% tax on the entire account

C.

D.

E.

Which of the following is a major advantage of a qualified plan?

a.An immediate tax deduction for the employee

b.An immediate tax deduction for the employer

c.Tax deferred build up of funds

A and C

A, B and C

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