I think it’s as “suitable” a read now as it was back then and I highly “recommend” it. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Your customer is a 66-year-old recently retired school teacher living on a defined benefit pension. The timer of the exam will not stop once the exam starts. Now, digging into the content by sub-topic, you can get much more specific about what to expect. When you’re planning out your last couple weeks before test day, be sure to spend a bit of time with each section before planning – and do a couple practice questions from each one. Which of the following funds seems LEAST suitable given her needs? 4 0 obj
I am selling 100 questions with a separate file for answers. will try to make it 50 by el fin de semana, clase. Her monthly check from the teacher's retirement system covers her expenses, but she also remembers the rampant inflation of the 1970's and is afraid her pension income won't keep up with rising prices. also: bonds are not expected to pay INCREASING income streams. These meetings cover various topics because suitability is not just about profiling customers....It is very important to know the characteristics of securities and which ones to recommend. Conservative growth indicates stock in well-established, blue chip, or large-cap companies that have a strong performance history. It’s always a good idea for a couple in or near retirement to establish an emergency fund, which should be equal to about three to six months of living expenses. 118 Terms. Additionally, many rules and regulations govern financial professionals and their interactions with customers. You can probably already tell which sections you need more practice with. Fixed-income products like bonds are usually the best choice, but preferred stock is also viable because of its fixed dividend. Income also impacts whether alternative investments may be appropriate. 2) You are meeting with a couple who plans to retire within the next two years, and they are asking you to identify the appropriate mix of assets for their investment portfolio. Finally, if the investor wants to maximize income but has high risk tolerance, a high-yield bond fund may work well. Don’t be afraid to take a question at face value, even if it seems too easy. The time horizon of the investor helps further refine the appropriate choice. <>
In that case, a DPP probably isn’t appropriate. By definition, they are fixed-income streams. She has extensive experience in financial licensing and regulatory training, having authored, developed and presented courseware for numerous securities and insurance exam preparation and continuing education and compliance programs. Let’s begin. There must be a way to send a private message, without having these comments show up as part of a topic. Remember to click the 'Finish Exam' link at the bottom of the page once you complete the whole exam. A rule of thumb might help you in these scenarios. Here are some things to remember: The age of the investor helps identify the appropriate portfolio mix. endobj
Looks like you're using new Reddit on an old browser. This section is all about the actual actions that must occur when a security is bought or sold. So I was hoping you could help me out. Which of the following portfolios is most appropriate for them? Suitability of Annuities on Series 7 Exam. I don’t want to lose money.”. Do not use the browser back button while doing this test. Sorry I know that I sound desperate...But I saw your sample questions and believe this will help me a lot on my second time around. m�$�k�v�Z�dQ53�Vt�ڶ.�yK9糗VmQ�ykE)���#������\l������>�'b�}��x���;��#ֳ�[)Iն���^2��/Oh��_��|����j�O�AM`�W����!x"{>�U�XrPz�Rйk+6m�e3o-�b�ں������3������n Marcia Larson is Vice President, Faculty, at Knopman Marks Financial Training, New York, NY. If income is needed over a long time frame, a bond ladder might be a good recommendation to smooth interest rate risk. The SIE Exam is a co-requisite exam for the FINRA license you will need to start your finance career, whether that’s the Series 6, Series 7, Series, 79, or another major license. Currently, I have written over 350 and I am in the process of creating a file with detailed answers to the questions. If the question doesn’t EXPLICITLY state something, don’t assume it to be true. Reply Delete. We’ll also share some important test-taking tips that will give you the edge on test day. 3 0 obj
Because the investor is seeking growth (appreciation) for a long-term objective (retirement), stock is essential. This is one of the reasons why it’s so important to skip questions where you are “stuck”, which we cover more in our Test Taking Strategies post, SIE (Securities Industry Essentials) Exam. I am thinking about selling suitability questions for the series 7 exam. What Does the Series 7 Mean by Suitability? A long-term investment horizon is likely to be more greatly impacted by inflation, so stocks are important in the overall picture. Any student who has a two hour meeting with me that covers suitability can get 150 questions for free. Candidates who take this exam are likely to see as many as 20-25 suitability questions that require analysis of a set of facts and an appropriate recommendation based on a unique customer situation. If the investor has an income need but prefers an equity portfolio, preferred stock is probably best. Choose from 262 different sets of series 7 practice exam suitability flashcards on Quizlet. Candidates who take this exam are likely to see as many as 20-25 suitability questions that require analysis of a set of facts and an appropriate recommendation based on a unique customer situation. Give yourself a time budget for how many hours you plan on studying between today and test day. An investor saving for the future or wanting capital appreciation has a growth objective. I don’t see anyone else offering this. Remember, munis should only be recommended for persons with a high income level (more than $100,000 for a single investor is a good rule of thumb), and never within retirement accounts. Take note of your confidence with each section. She has indicated willingness to take some risk, so a mid-cap stock fund is appropriate. Explanation: The best choice for this customer is C, a mid-cap stock fund. I would sell them on my own website, Ebay or other platforms. Suitability and Recommendation questions….. Series 7 style Hello Series 7 students! Enjoy! A best practice is to read the question all the way through, read all four answer choices, and then read the question one more time. %PDF-1.5
It will be common for questions to provide various aspects of a customer’s financial situation and ask for the best possible recommendation. If you’re. Here is a piece originally posted for our students in September, 2012. Equity Indexed Annuities: the industry perspective, FINRA Enforces MSRB rules on David Lerner Associates, Series 7 Exam Sample Suitability Question, Sample Suitability Question for Series 7, Annuities, Big 3: Objectives, Time Horizon, and Risk Tolerance. If you’ve already been reading through the material and are just planning your final review, 10-20 hours is often recommended. %����
Suitability questions will get easier as you practice them. But if the investment need is only for a very short period, money market securities may be appropriate because they historically retain their NAV of $1.00 per share, but with a very low return. New comments cannot be posted and votes cannot be cast, More posts from the Series7exam community. rule for determining asset allocation: tax implications for retirement. Alright, you’ve taken the SIE (Securities Industry Essentials) Exam, but now it’s time for you to take the Series 7 Top-Off exam? How Many People Are Taking FINRA’s SIE and Top-Off Exams? . These may include: The Series 7 Top-Off exam that you take will have 135 questions, with 10 of those questions being “experimental” questions that don’t count on the final exam. Ah you don’t happen to have any samples I could use?
High-grade bond funds and REITs (real estate investment trusts) are also appropriate for income objectives. now up to 40 questions . �:y����8_D�r.��kQH��N'-���!g. If you want to set up a meeting, you can send a note to tutor@series7examtutor.com.....I am not great at Reddit. formId: "d0aadfd4-8374-4fc0-9ec9-4b878c9ccc2b" At the moment, we have written over 250 suitability questions covering various topics. Series 7 Suitability Questions by Michael Weiss, CFA on 05/24/15 As you may or may not know, Series 7 Exam Tutor writes suitability questions and when appropriate, distributes them to existing students. All rights reserved ©2016 - 2020 Achievable, Inc. Seeks Business for the Broker-Dealer from Customers and Potential Customers, Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives, Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records, Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions, Equity securities (common and preferred stock), Investment Companies (for example: mutual funds), How to understand a customer’s financial situation, Supervisory requirements for discussions with customers, The Series 7 Top-Off exam that you take will have 135 questions, with 10 of those questions being “experimental” questions that don’t count on the final exam. The guidance below will help you choose appropriate investments based on these five factors. You need to interpret the story. A preferred stock ETF is more suitable for an income objective because of preferred stock’s fixed dividends. Series 7 Suitability Questions by Michael Weiss, CFA on 05/24/15 As you may or may not know, Series 7 Exam Tutor writes suitability questions and when appropriate, distributes them to existing students. <>/ExtGState<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>>
Long-term growth. 10 of the questions are considered “experimental” and do not count towards your grade. Aggressive growth points toward stocks in technology companies, start-ups, small-cap companies, or companies with high price/earnings ratios. Suitability and Recommendation questions….. Series 7 style Hello Series 7 students! The new Series 7 top-off exam places more emphasis than ever on the concept of suitability. The main focal point of this section is suitability, which involves making proper investment recommendations to customers. 1) Your customer, age 40, is asking your advice on investment options for her recent bonus. Younger persons need more growth to keep pace with inflation over a long investment period; older investors need to be more conservative because they don’t have time to earn back investment losses. For reference, most Series 7 courses recommend around 100 hours to master the subject.