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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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