Question

50.

Which of the following income tax credits, tax-advantaged accounts, or deductions are available to taxpayers who are in high income tax brackets?

		Coverdell Education Savings Account
		Lifetime Learning Credit
		Section 529 plan
		Deduction for interest on education loans

49. Ron is trying to determine a new client’s risk tolerance. Which of the following sources of information could help Ron?

              I         Response from the new client when asked directly about risk tolerance

            II         Questionnaire completed by the new client

           III         The new client’s previous actions

           IV         The new client’s demographic characteristics

		I only
		I and II only
		I, II, and IV only
		I, II, III, and IV

41.

Kaylee wants to fund her 21-year-old daughter Jenna’s master’s degree as a present for finishing her undergraduate degree. Jenna will start her master’s program in one year. The current cost of tuition is $25,000 per year and she expects it to increase 8% per year. She also anticipates earning 6% per year on her investments. Approximately how much does Kaylee need to contribute today to fund her goal?

		$24,500
		$25,000
		$25,500
		$26,000

Physical attending requires the financial planner to do all of the following, EXCEPT:

		Look the client directly in the eye
		Lean back in the chair to not invade the client’s personal space
		Sit at the table directly across from the client
		Maintain a relaxed behavior with the client

Answer 1

50) Section 529 plan

this plan do not have phase outs or rules to limit their use to any particular income bracket.

49). I, II, III, and IV

all sources of information could help Ron to access risk tolerance of the client.

41). tuition = $25,000 per year a

increase 8% per year = 25000 * 1.08 = 27,000

rate of return 6% = 25,000 * 1.06 = 26,500

difference = 500

therefore initial amount of 25,000 + 500 = 25,500.

Lean back in the chair to not invade the client’s personal space.

leaning back may convey negative message.