100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
AWMA Exam 1 Practice Questions and Answers – Updated 2024 $12.49   Add to cart

Exam (elaborations)

AWMA Exam 1 Practice Questions and Answers – Updated 2024

 5 views  0 purchase
  • Course
  • Awma
  • Institution
  • Awma

AWMA Exam 1 Practice Questions and Answers – Updated 2024 Which one of the following characteristics is more correct concerning younger wealthy individuals (millennials and GenXers)? A) Younger wealthy individuals are seeking more technological options in financial planning. B) Younger wealt...

[Show more]

Preview 4 out of 47  pages

  • October 16, 2024
  • 47
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • Awma
  • Awma
avatar-seller
Emillect
EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024




AWMA Exam 1 Practice Questions and
Answers – Updated 2024


Which one of the following characteristics is more correct concerning younger wealthy

individuals (millennials and GenXers)?




A) Younger wealthy individuals are seeking more technological options in financial planning.


B) Younger wealthy individuals have not experienced significant bear markets.


C) Younger wealthy individuals have directly opposite financial needs as compared to baby

boomers.


D) Younger wealthy individuals likely want to be advised by one of their own generation. -

Answer✔✔-A) Younger wealthy investors (millennials and GenXers) are seeking fresh

approaches to financial planning, including more technological options. In addition, young

clients also have been through fewer years of investing but have experienced several significant

bear markets. Mod 1


One of the most important life goals of wealthy individuals is




Page 1/47

,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024


A) protecting wealth.


B) assuring their retirement lifestyle.


C) minimizing taxes.


D) travelling the world. - Answer✔✔-D) The most frequently stated life goals for wealthy

individuals are having good health, travelling the world, and achieving financial success. To

achieve financial success, the most common financial goals are protecting wealth, assuring

retirement lifestyle, minimizing taxes, and leaving an estate to their heirs. Mod 1


One of the most important financial goals of wealthy individuals is




A)leaving an estate to their heirs.


B)having good health.


C)none of these.


D)travelling the world. - Answer✔✔-A) To achieve financial success, the most common financial

goals are protecting wealth, assuring retirement lifestyle, minimizing taxes, and leaving an

estate to their heirs. The most frequently stated life goals for wealthy individuals are having

good health, travelling the world, and achieving financial success. Mod 1


Which one of the following statements is true regarding sustainable and responsible

investments (SRIs)?




Page 2/47

,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024


A) Shareholder activism is a part of SRIs.


B) Baby boomers are the most likely demographic to invest in SRIs.


C) SRIs provide lower returns, but are a "feel-good" option for investors.


D) SRIs provide only a negative filter of staying away from certain assets. - Answer✔✔-A)

Shareholder activism also plays a part in getting companies to listen by passing shareholder

resolutions. Sustainable and responsible investing has been found to be of importance to Gen

Xers and millennials. Several studies have now shown taking into account ESG factors actually

increases long-term returns. For SRI investments, the adviser needs to set up a series of filters

to determine a client's specific wants for a sustainable fund. For instance, tobacco may be a

main prohibition for one client, while religious aspects may be a positive filter for that same or

another client. Mod 1


Concerning control of assets in a private foundation versus a donor-advised fund, which one of

the following aspects is true for a donor-advised fund?




A)Remains with founder's values


B) Needs lengthy IRS approval


C) Easier and less expensive to launch


D) Must pay out a certain percentage each year - Answer✔✔-C) Donor-advised funds (DAFs) are

growing in popularity and have the advantage of being easier and cheaper to launch and not



Page 3/47

, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024


requiring the lengthy IRS approval that private foundations need. Values may change with a DAF,

as major contributors have input into this type of charitable fund. In addition, only private

foundations must make payouts each year; DAFs have flexibility with this. Mod 1


If a high net worth (HNW) business owner came to your office, what would you expect her

financials to show, as compared to a HNW non-business owner?




A) About the same income, with more assets and higher net worth


B) About the same income with more assets, yet lower net worth


C) Higher income, with fewer assets and lower net worth


D) Lower income, with fewer assets and lower net worth - Answer✔✔-A) Income is similar

between all HNW professions; however, assets and net worth include business assets, so more

assets and higher net worth are common for HNW business owners. Many business owners are

exposed to a large amount of unsystematic risk because a significant amount of their capital is

often tied up in their business. Mod 1


When considering the social impact goals of a high net worth client, wealth planners should

expect those clients to




A)not want their planner to be involved in the charitable concern.


B)want their children to also develop charitable tendencies.


Page 4/47

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Emillect. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

83100 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.49
  • (0)
  Add to cart