1) All adults should engage in the estate planning process.
2) Having both a checking and a savings account can help one get credit and at lower
rates.
3) The insured carries the burden of proof whenever a property or liability loss occurs.
4) When calculating the break even prices for both puts and calls, it is critical to include
all transaction costs in the contract cost.
5) Usury laws establish the maximum loan amounts, interest rates, and credit-related
fees for different types of loans from various sources.
6) The highest marginal tax rate is currently 35 percent.
7) The lower the insurance company’s claims ratio, the lower the percentage of the
premium dollar paid out in claims.
8) Corporate earnings are the profits a company makes during a specific time period.
9) The IRS says you must do what a “reasonable business person” would do to make a
profit when running your own business.
10) Because each individual employee makes his or her own investment decisions, a
salary-reduction plan could be described as a self-directed retirement plan.
11) Your earnings subject to Social Security taxes in your early years will be indexed
for inflation when calculating your benefit amount at retirement.
12) A growing number of life insurance companies now make a policy’s death benefit
available to a terminally ill insured.
13) Flexible spending accounts reduce taxes because contributions to these accounts are
made with pretax dollars.
14) The services of a real estate attorney will be needed to help handle the real estate
purchase, sale, building inspections, zoning issues, tenant problems, insurance disputes,
and any liability issues.
15) Checks mailed to the bank for deposit should always be endorsed with a restrictive
endorsement.
16) A person who has a negative net worth is technically insolvent.
17) Lenders who focus primarily on borrowers with low credit scores make up the
secondary lending market.
18) Theft damage is the most common peril for automobiles.
19) Systemic risk is easier to avoid than random risk.
20) FHA mortgage insurance premiums may only be paid as a single up-front,
lump-sum payment.
21) For children younger than 18, unearned income in a custodial account in excess of
$950 is taxed at the parent’s rate.
22) The smallest round lot of stock is 50 shares.
23) Net asset value of a mutual fund is calculated weekly.
24) For Social Security purposes, the full-benefit retirement age is 67 for those born
prior to 1960 .
25) The finance charge on a loan is simply the interest charged by the lender.