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Financial Planning - Final Exam Review Sheet 2013

Your Final Exam will have 3 parts as follows: PART I PART II PART III Vocabulary Multiple Choice 1040 Tax Return Problem (All parts) Locating the tax amount from the tax tables Calculating the Tax Liability or Tax Refund

1040 form Schedule A form Schedule B form Form 2441 Child Tax Credit Worksheet You should be familiar with the following TOPICS as covered in class: Investing Credit Taxes and Tax Returns & Related Forms Insurance o General Insurance terms and concepts o Automobile Insurance o Life Insurance o Health Insurance o Homeowners Insurance

Use your binder including all handouts, notes, worksheets, and previous test to help review for the final exam. Investing Terms and Concepts Stocks What stocks represent and different types How investors make money from owning stocks Bonds Corporate, Government, and Municipal What bonds represent and how investors make money Mutual Funds Why companies issue stocks Why companies issues bonds Diversification Dividends Equity Credit Credit Annual Percentage Rate Capacity Collateral Cosigning Credit Line Creditor Bull market Bear market IPO- Initial Public Offering Appreciation Depreciation Capital gain and capital loss Investment Risk levels Investment Liquidity How to read the stock tables Calculating stock purchases, dividends, capital gains and capital losses

Default what is means and the consequences Character Grace Period Credit Scores and Credit Bureaus Credit rating Types of Credit open end and closed end credit Mortgage


Financing Equity Bankruptcy what it is and the consequences

Credit Laws o Equal Credit Opportunity Act o Truth in Lending Act o Fair Credit Reporting Act o State income tax o Mortgage Interest o Medical and dental costs o Tax preparation fees o Safe deposit box Tax liability Tax refund Tax audit Tax Exempt versus deferred W-2 Form W-4 Form

Completing tax forms for 1040 Gross income Net income Adjusted gross income Interest income Internal Revenue Service (IRS) Ordinary dividends Child Tax Credit Federal Income Tax - Itemized deductions o Property tax

General Insurance Basics Risk Hazard Peril Co-payment Co-insurance Deductible Liability Insurer Auto Insurance Liability Coverage Property Damage Liability Collision coverage Life Insurance Term life insurance o What it is and how it works o Advantages and disadvantages Beneficiary primary and contingent Cash Value (Permanent) Homeowners and Renters Insurance Homeowners insurance Renters insurance Replacement Value Actual Cost Value Health and Disability Insurance Copayment

Insured Negligence Policy Premium Policyholder Coverage Relationship between premium and deductible

Comprehensive coverage Uninsured - Hit and Run coverage Type of insurance coverages needed on leased and financed cars Death Benefit Permanent life insurance o What it is and how it works o Advantages and disadvantages

Personal Property Floater Property Damage Liability Calculating a claim with a deductible


Deductible HMO PPO Claim Policy Policyholder

COBRA Medicare Medicaid Disability insurance Elimination period Managed Care