1. Which one of the following characteristics is more correct concerning

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• Which one of the following characteristics is more correct concerning

younger wealthy individuals (millennials and GenXers)?

• Younger wealthy individuals are seeking more technological options in

financial planning.

• Younger wealthy individuals have not experienced significant bear markets.
• Younger wealthy individuals have directly opposite financial needs as

compared to baby boomers.

• Younger wealthy individuals likely want to be advised by one of their own

generation.: Ans- 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

• protecting wealth.
• assuring their retirement lifestyle.
• minimizing taxes.
• travelling the world.: Ans- D) The most frequently stated life goals for wealthy

individ- uals are having good health, travelling the world, and achieving financial AWMA Exam 1 Actual Exam Questions and Answers Latest / 100% Correct. 1 / 4

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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

• leaving an estate to their heirs.
• having good health.
• none of these.
• travelling the world.: Ans- 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)?

• Shareholder activism is a part of SRIs.
• Baby boomers are the most likely demographic to invest in SRIs.
• SRIs provide lower returns, but are a "feel-good" option for investors. 2 / 4

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D) SRIs provide only a negative filter of staying away from certain assets.: 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?

• Remains with founder's values
• Needs lengthy IRS approval
• Easier and less expensive to launch

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

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

• About the same income, with more assets and higher net worth 3 / 4

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• About the same income with more assets, yet lower net worth
• Higher income, with fewer assets and lower net worth

D) Lower income, with fewer assets and lower net worth: 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

• not want their planner to be involved in the charitable concern.
• want their children to also develop charitable tendencies.
• only want the charitable concern in order to reduce tax exposure.
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