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Exam Code: CFSA Practice test 2022 by Killexams.com team
CFSA Certified Financial Services Auditor (IIA-CFSA)

Certified Financial Services Auditor® (CFSA®) test Syllabus
The CFSA test tests a candidate's knowledge of current auditing practices and understanding of internal audit issues, risks, and remedies in the financial services industry.

The test consists of 115 multiple-choice questions.
The testing period is two hours and fifty-five minutes.
Exam questions are all multiple-choice (objective) with four answer choices.
80% of the test covers four domains: Financial Services Auditing, Auditing Financial Services Products, Auditing Financial Service Processes, and The Regulatory Environment.
The remaining 20% relate to the candidates' chosen discipline and will be at the proficiency level.
CFSA candidates may choose any one of the three disciplines as part of their CFSA test test.
Candidates may not choose to be tested on more than one discipline.
The CFSA designation does not distinguish one chosen discipline from another.

The CFSA test core content covers four domains:

Domain I: Financial Services Auditing (25-35%)
Domain II: Auditing Financial Services Products (25-35%)
Domain III: Auditing Financial Service Processes (25-35%)
Domain IV: The Regulatory Environment (10-20%)

CFSA test Individual Disciplines
Banking: Products, Processes, and the Regulatory Environment (20% — Proficiency Level)
Insurance: Products, Processes, and the Regulatory Environment (20% — Proficiency Level)
Securities: Products, Processes, and the Regulatory Environment (20% — Proficiency Level)

Financial Services Auditing (25-35%)
(P) = Candidates must exhibit proficiency (thorough understanding, ability to apply concepts) in these syllabu areas.
(A) = Candidates must exhibit awareness (knowledge of terminology and fundamentals) in these syllabu areas.
A. IIA International Professional Practices Framework (P)
B. Internal Control/Risk Management/Governance (P)
Internal Control Frameworks
Risk Management Frameworks
Governance Models
C. Audit Process (P)
Audit Planning
Audit Fieldwork
Risk Assessment
Analytical Review
Data Gathering and Evaluation
Testing
Tools and Techniques (e.g., CAAT)
Audit Communications
Monitoring Outcomes
D. Implications of Information Technology (P)
E. Auditing Financial Statement Elements (P)
Balance Sheet
Statement of Cash Flows
Income/Expense Statement
Off Balance-sheet Items
Auditing Financial Services Products (25-35%)
(P) = Candidates must exhibit proficiency (thorough understanding, ability to apply concepts) in these syllabu areas.
(A) = Candidates must exhibit awareness (knowledge of terminology and fundamentals) in these syllabu areas.
A. Lending/Loans (A)
B. Deposits (A)
C. Trusts (A)
D. Annuities (A)
E. Derivatives (A)
F. Electronic Services (A)
G. Cash Management Services (A)
H. Stocks (A)
I. Bonds (A)
J. Commodities (A)
K. Mutual Funds (A)
L. Employee Benefits (A)
M. Capital Market Products (A)
N. Securities Lending (A)
O. Insurance Policies (A)
P. Insurance Products (A)
Q. Foreign Exchange (A)
R. Asset Management (A)
S. Money Market Products (A)
Auditing Financial Service Processes (25-35%)
(P) = Candidates must exhibit proficiency (thorough understanding, ability to apply concepts) in these syllabu areas.
(A) = Candidates must exhibit awareness (knowledge of terminology and fundamentals) in these syllabu areas.
A. Risk Management (A)
Asset/Liability Management
Trading Market Risk
Credit, Liquidity, Operational Risk
Allowance for Loan and Lease Losses
Reserves
B. Underwriting (A)
Loans
Securities
Insurance
Private Placement
Initial Public Offerings
C. Securitizations (A)
D. Treasury Operations (e.g., Cash Management) (A)
E. Back-office Operations (A)
F. Marketing Sales and Distribution (e.g., Insurance Agencies, Bank Branches, Brokers) (A)
G. Claims (A)
H. Investments (A)
I. Broker/Dealer Activities (A)
J. Rating Advisory Service (A)
K. Mergers and Acquisitions (A)
L. Loan Operations (e.g., Collateral Issues, Perfecting Liens) (A)
The Regulatory Environment (10-20%)
(P) = Candidates must exhibit proficiency (thorough understanding, ability to apply concepts) in these syllabu areas.
(A) = Candidates must exhibit awareness (knowledge of terminology and fundamentals) in these syllabu areas.
A. Overview of the Regulatory Environment (A)
Function of Central Bank
Function of Insurance Regulators
Function of Securities Regulators
B. Laws and Regulations (A)
Equal Credit Opportunity/Antidiscrimination
Home Mortgage Disclosure
Reserve Requirements
Insider Transactions
Lending Disclosure
Deposits Disclosure
Real Estate Sales Disclosure
Self-assessment of Internal Controls/Risk Management
Investor/Depositor Protection
Financial and Personal Information Privacy
Anti-Money Laundering
C. Stock Exchanges and Other Markets (A)
D. Money and Banking (A)
Role of Money and Banking
Bond and Stock Markets
Effect of Interest Rate Movements
Monetary Management Theories

Certified Financial Services Auditor (IIA-CFSA)
Financial Topics
Killexams : Financial Topics - BingNews http://www.bing.com:80/news/search?q=Financial+Topics&cc=us&format=RSS Search results Killexams : Financial Topics - BingNews http://www.bing.com:80/news/search?q=Financial+Topics&cc=us&format=RSS https://killexams.com/exam_list/Financial Killexams : How To Make Financial Decisions When You Aren’t A Billionaire And You Aren’t Living Paycheck To Paycheck

Personal finance is hard. Investments, mortgages, taxes, insurance- so many things to consider. Once you graduate past opening your first basic checking-savings account, things become infinitely more complicated.

Personal financial management weighs heavily on many Americans causing them serious stress. The American Psychological Association surveys Americans’ stress levels annually and this year’s results found that money stress registered at the highest level recorded since 2015.

A majority of financial planning clients — 71% — report experiencing financial anxiety at least half of the time, (Source: MQ Research Consortium and Kansas State University Personal Financial Planning Program.)

These stresses are felt at all income levels. I came across this Tweet a while back that frames the problem perfectly:

This is the headspace that the majority of Americans have: you are grateful to have options, but those options can be overwhelming. Furthermore, if you want to be confident that you’ll achieve your financial goals, it's critical to look at the entire picture.

You may have the basics of budgeting figured out or stumbled your way through getting your first mortgage, but would you say you have a deep understanding of how to manage your money so that you can confidently and effectively meet all your short- and long-term financial goals?

Where to turn for financial advice

For many young families, couples, and those making big financial decisions for the first time, a trusted mentor is the first place to turn for advice. This is generally a parent or close friend.

The problem with asking family and friends about how to handle your finances is that, unless mom and dad are certified financial planners, they probably aren’t qualified to deliver you advice - even if you consider them successful. In addition, your friends and family most likely don’t have the full picture of your financial situation.

Most Americans do not feel comfortable being completely transparent about finances, therefore any advice will not be offered with the full picture in mind.

Another favorite place to seek financial advice? The internet. As a certified financial planner turned financial blogger, I offer tons of financial advice online. My goal is always to get the conversation started because talking and thinking about our finances is the first step.

That said, unless I’m meeting with you one-on-one, the advice isn’t tailored specifically to you. Personal finance articles have to be broad enough to speak to anyone and everyone.

A third choice is to consult with a financial advisor or financial planner, however, for many this option is too expensive. Many charge more than 1% of assets under management (AUM)- which, due to the nature of compound growth, can end up costing you thousands of dollars over time.

Additionally, financial planners often have a minimum requirement to work with them. This can be as much as a million dollars or more. It logically follows that the best financial planners are the ones who can be choosy and establish high minimum requirements.

For some, particularly those with complicated financial circumstances, a financial planner or a team of financial experts can provide benefits well beyond their costs. “In the ultra-high net worth space, sound financial strategies that are designed to weather financial and market cycles, to grow and preserve wealth for future generations, take a tremendous amount of time to develop and execute - requiring close coordination with tax, legal, accounting, and investment advisors.

In many cases, that team first needs to be assembled, then managed,” says Thomas Callahan, CFP and Director at Boston Family Advisors, LLC. “This process requires patience, prudence, and conviction. There are many potential points of failure which is why it is common for many people to lack a financial strategy or for that strategy to be suboptimal.”

Lastly, many tech companies have recognized the need for personal finance tools. New software, some that are even free, can help you create a financial plan. The challenge is that many will deliver you a map that you don’t know how to read. A plan is just that, a plan.

If you do not understand the roadmap or you don’t know how to act on it, then your situation will never change.

Getting started: understand the fundamentals.

Before diving into a full-fledged financial plan, I used to work with my clients to ensure they understand these five key principles:

Invest early and often.

Investing can be difficult to get into a habit of doing, especially with consistent news stories about inflation and the cost of living rising just about everywhere. Yet, even small investments early on can have outsized returns due to the power of compounding.

Time in the market beats all.

The earlier you can get your hard-earned money into investment accounts and working for you, the better. Got a raise? Congrats!

Treat yourself to something modest in the short term, then sock away the majority of those extra dollars from each paycheck.

If your employer has a 401(k) match, contribute AT LEAST to the match.

This is free money!

Don’t worry about timing the market.

Trying to time the market is, at best, silly and, at worst, financially damaging. Humans are emotional investors. It is almost impossible for us to buy low and sell high. Instead, aim to buy “young” and sell “old”.

You don’t need to worry about timing the market if you can spend time in the market.

Make sure your funds are invested in the market.

Money that is intended to make money, like your retirement savings, shouldn’t be sitting in savings or money market accounts. If you do that, your money will lose value by not keeping up with inflation.

Unfortunately, it is surprisingly common that a 401(k) will be invested in a money market account rather than being put in the market, so make sure your assets are invested where you want them.

Pay off your high-interest debt.

While definitions of “high-interest debt” vary, treat anything like credit card debt or personal loans as undesirable. If you are sitting on high-interest debt you are throwing money away in interest and fees.

Past the basics: next level financial planning

There are some things everyone should do across the board, and then there are a number of decisions that really depend on personal factors and preferences such as how much you can save and spend, your risk tolerance, and your goals.

To begin mapping your financial plan, with or without support, you need to be familiar with these concepts.

Balance short- and long-term goals against retirement planning.

Retiring is not your only financial goal. College funds, mortgages, and even purchases, like cars, require planning. A good financial strategy balances your short-term goals against the longer-term ones.

For example, if you want to buy a home in the next two years, you should most likely be saving less for retirement in that time. Or, if you want to retire before age 59, then you will need to save beyond just your 401(k), as those funds are not accessible, penalty free, until age 59.5.

Invest in a diversified portfolio.

Gone are the days of studying the markets and handpicking stocks. Exchange-traded funds (ETFs) are an excellent way to get diversification at a lower cost than other investment vehicles, including mutual funds.

Save for college in a 529.

529s are just one example of a tax-advantaged account, but they are an important one. College is expensive. You know it, your kid knows it, and the government knows it. You want to take advantage of any tool you have to save money for your children’s education in a smart way. That being said, be careful not to overfund this account, as the funds can only be used for specific expenses.

Develop a tax strategy.

To sum it up, everyone likes to save money, especially on taxes. Tax-advantaged accounts, beyond just 529s, are great resources and totally should be utilized.

Set aside an emergency fund.

Not all your money should be put into investment accounts. You should also have cash savings that are accessible to you when unplanned emergency expenses come up - and they will.

A good financial plan is a holistic one

Good financial planning isn’t just about retirement, it should consider the amount and timing of all your goals to see how they interact. For example, aggressively paying down your mortgage might put you in a position where you are cash poor.

Then, if the worst happens - let’s say you lose your job and can no longer make your mortgage payments - you have no ability to get that cash back without selling your home. By looking at your entire financial picture, you can mitigate this kind of risk.

Additionally, your plan should look across your entire financial portfolio inclusive of your mortgage, taxes, and insurance. This is where personalization and customization is key.

You may be purchasing a home, saving for retirement, thinking about college for your children - all of these factors come into play when determining how best to save and invest.

Traditionally, understanding how these factors interact has been difficult without the help of a financial planner, but new tools are appearing that make understanding their impact accessible to everyone.

“We make it easy to understand trade-offs from each financial decision,” said Seth Burstein, Fortunately co-founder. “We take into account major considerations that impact your finances - like your savings rate, mortgage, tax-advantaged accounts, and brokerage account - and how they all interact to affect your chances of achieving your goals.”

To recap, personal finance is hard, but turning to friends and family, unless they are personal finance experts, is just not a good idea. The internet has a plethora of resources. Remember to examine if they are written by someone qualified to deliver advice and keep in mind the intended audience.

I like Ericka Young, of Tailor-Made Budgets, who offers general personal finance information and of course I offer extensive information on a variety of personal finance Topics on my site (GoodFinancialCents.com).

If you are interested in investing in a financial planner I recommend checking their credentials and asking a couple key questions before getting started.

  1. How do you get paid? You should know how your financial professional gets paid as well as whether they earn commissions on the investments they sell.
  2. Are you a fiduciary? A financial advisor who is a fiduciary is legally required to put your interests first as they craft your financial plan.
  3. Do you hold any certifications? Does your advisor hold a certified financial planner (CFP) designation or have another professional certification like certified public accountant (CPA) or chartered financial analyst (CFA CFA )? Professional certifications can show that a financial advisor has gone the extra mile to stay educated and informed in their area of expertise.
  4. Do you have a specialty and what services do you offer? Remember you want someone to look at your finances holistically. Some financial planners may only focus on retirement planning, while others specialize in minimizing taxes. Make sure to work with a professional who specializes in working with people just like you.

Financial tech is rapidly changing and there are some great options available. Betterment is good for asset management and some of their premium plans entitle you to a call with a financial planner. Personal Capital is another robust option that provides a comprehensive look at your complete financial picture.

Another choice is Fortunately, which looks across your entire financial portfolio (including savings, mortgage and taxes) to provide step by step guidance on how to achieve your goals.

All this to say is you have options with your retirement planning needs.

While financial planning may feel complicated and overwhelming at first, what’s most important is taking the first step. The route you take can always change over time as your sophistication and comfort grow.

So choose an option and get started today.

Fri, 29 Jul 2022 04:35:00 -0500 Jeff Rose en text/html https://www.forbes.com/sites/jrose/2022/07/29/how-to-make-financial-decisions-when-you-arent-a-billionaire-and-you-arent-living-paycheck-to-paycheck/
Killexams : The Best Free (or Cheap) Financial Courses for Beginners No result found, try new keyword!Educating yourself about money matters is essential, but if you’re already struggling with money you certainly don’t want to spend big on financial literacy courses. Luckily we’re also living in a ... Thu, 28 Jul 2022 04:07:28 -0500 en-us text/html https://www.msn.com/en-us/money/other/the-best-free-or-cheap-financial-courses-for-beginners/ar-AA104do2 Killexams : Financial Market Cycles No result found, try new keyword!Our Chief Equity Strategist & Economist, John Blank, on financial market cycles and Q2 2022 earnings. With John, I’m Terry Ruffolo. Just released: Experts distill 7 elite stocks from the current list ... Fri, 29 Jul 2022 03:41:00 -0500 text/html https://www.nasdaq.com/articles/financial-market-cycles Killexams : 4 Ways Financial Planners Can Help Small Business Owners Succeed

Tue, 26 Jul 2022 22:11:00 -0500 en text/html https://www.wyomingnews.com/online_features/money_and_finance/4-ways-financial-planners-can-help-small-business-owners-succeed/article_62e56b37-287a-5a5b-a211-dac8b1b33b61.html Killexams : Tom and John Mills' Common Cents: Avoid these three financial pitfalls

I often receive questions from people who think my clients are primarily people who are terrible with money. Most assume that financial advisers exist to help people in horrible financial situations; what else would a financial planner do?

One of the ultimate financial ironies is that the people who most need financial advice seldom seek it. I see this every day. The typical person who walks into my office has decades of making good financial decisions.

I have worked with enough people who desperately need financial advice to notice several themes. These themes often stop people from taking that first step toward financial security.

The first strain of faulty thinking is an all-or-nothing attitude. People see where they want to be, and it seems too daunting, so they don't even begin.

People who suffer from all-or-nothing think retirement is an impossible dream, so they never open that first account and make that first deposit. Many parents worry about the high tuition cost and never begin saving.

People are also reading…

No matter how small the deposit, you must make it. Once you gain a little momentum, you will begin to enjoy the process.

The second false belief that stops people from taking that first step is to think the game is rigged. They think investing is for the ultra-intelligent or powerful and that they will get crushed.

Too many people think investing is a zero-sum game where there always has to be a loser. This is simply not true. Movies perpetuate the zero-sum myth, as do news stories that often paint a picture that only the rich get ahead.

In 2008 Warren Buffett made a million-dollar bet with a fancy New York hedge fund. Buffett bet that after fees and expenses, the hedge fund would not beat the S&P 500. The winner would donate the million dollars to charity.

Years before the bet was over, the hedge fund conceded. The S&P was too far ahead to catch up. This victory is not a fluke; most managers can't beat their respective indexes. High internal fees sabotage even the best managers.

The last faulty line of thinking is the idea that financial literacy is complex. Most people who have long-term financial struggles never take a step to learn more about finances.

Gaining financial literacy is a brick-by-brick process. Very few financial Topics are unobtainable; they require little time and discipline.

Common Cents: How do you stay sane in a bad market? John Mills has some tips. 

Self-help guru Jim Rohn once said something profound. He said, "if you think trying is risky, wait till they hand you the bill for not trying."

If you are too afraid to start saving or investing because it seems insignificant or scary, the "bill" of inaction will come, and the "bill" will be more expensive than you can ever imagine.

Tom and John Mills are registered investment advisers and certified financial planners. Reach them at 254-0155 or MillsWealth.com. Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Strategic Wealth Advisors Group (SWAG), a registered investment adviser.

Tue, 02 Aug 2022 04:35:00 -0500 en text/html https://napavalleyregister.com/business/tom-and-john-mills-common-cents-avoid-these-three-financial-pitfalls/article_e733150e-0a14-11ed-b084-ff55d07674b9.html
Killexams : GO in the Know: Social Security Questions Answered, Robinhood’s Woes & Top Financial News for August 3

seb_ra / iStock.com

If you need some help getting over the hump on this hump day, check out our roundup of the top financial stories out there. Lotta good stuff in here today.

The Big Lead: Social Security’s 8 Most-Asked Questions Answered

Social Security is a large program affecting many people, so there are often questions that come up about how to receive benefits, age limits, direct deposit and other common topics. GOBankingRates breaks down the most frequently asked questions, as noted by the SSA.

Read the full story here

Business Spotlight: Robinhood

Robinhood announced it was laying off 23% of its staff, following the 9% of staff it laid off in April. While employees from all functions will be impacted, the changes will be concentrated in the company’s operations, marketing, and program management areas, according to CEO Vlad Tenev.

Read the full story here

That’s Interesting: Job-Hopping Trends Upward

Job-hopping is on the rise as workers, given the current market, are finding higher wages outside their current positions. But could switching jobs too often damage your career irreparably?

Read the full story here

Bonus: Have a Teen Driver? Here’s How To Save on Insurance

Back-to-school means lots of added costs for parents, from supplies for K-12 children to books and tuition for incoming college freshmen. But one thing parents may not consider is how expensive having a new driver or a teen driver can be.

Read the full story here

More From GOBankingRates

This article originally appeared on GOBankingRates.com: GO in the Know: Social Security Questions Answered, Robinhood’s Woes & Top Financial News for August 3

Wed, 03 Aug 2022 05:05:00 -0500 en-US text/html https://www.aol.com/finance/know-social-security-questions-answered-170534454.html
Killexams : Why I Have an ‘In Case I Die’ Folder With Important Financial Info No result found, try new keyword!Since my early adult years, I've been somewhat obsessed with financial matters. So when my husband and I got married, I took the lead in organizing much of our shared financial matters. While this ... Sun, 31 Jul 2022 01:00:00 -0500 text/html https://www.nasdaq.com/articles/why-i-have-an-in-case-i-die-folder-with-important-financial-info Killexams : You Just Won the Lottery. Here’s the Very First Thing You Should Do.

The first thing lottery winners hear is “Congratulations!” The second thing they often hear is “Can I have some money?” What they really should be told is “It’s time to hire a financial advisor.”

This is a situation someone likely soon will have to face, as the jackpot for the Mega Millions lottery has soared to $1.28 billion, which would be the second-largest payout in the lottery’s history. The next drawing is set for Friday night, which means that someone’s life could change dramatically, very soon.

The headline jackpot number may be $1.28 billion, but if the winner opts to take the money in a lump-sum cash payout, it drops to a mere estimated $747.2 million before taxes. 

After the initial euphoria has faded—maybe after a night of revelry, maybe the next day—the lottery winner should probably look for a financial advisor to help them navigate the many unforeseen contingencies they will face now that they have suddenly reached a stratospheric level of wealth. 

“You don’t know what you don’t know,” says Stacy Coffey, senior vice president of wealth strategies at Wealth Enhancement Group, a large registered investment advisor based in Minneapolis with offices around the country. “We have to talk about what this money really means. I’m assuming in 99.9% of cases, a $600 million check will be life-changing.”

Investment advisors are always quick to tout the benefits of working with a financial professional—they believe in what they do, after all. But in a case like a lottery winner or some other recipient of sudden wealth, it’s hard to argue against the wisdom of seeking the services of a reputable fiduciary advisor—one who is legally required to work in their clients’ best interest.

“Not even as a financial planner, even as a lay person, I would think, ‘Oh my goodness if you come into a lot of money having a professional who is a fiduciary on the same side of the table as you would be essential,'” says Evelyn Zohlen, president of Inspired Financial, an RIA in Huntington Beach, Calif.

For advisors, even those who’ve never worked directly with a lottery winner, it’s a familiar scenario. Advisors frequently work with clients who come into a sudden windfall of money, maybe through an inheritance, selling a business, or some other major financial event.

“The lottery isn’t as common, as you can imagine, but windfalls are pretty regular,” says Ryan Viktorin, vice president and financial consultant at Fidelity Investments in Framingham, Mass. “In the case of the lottery winner, after taking a breath and slowing down for a minute after that happens, the first thing you should do is assemble a team that is going to construct a full financial plan.”

The playbook is the same. Advisors say they would move quickly to gather specialized professionals for the newly wealthy client—an accountant to help with the tax issues, an attorney to handle estate planning.

Taxes loom large in this kind of situation. And, in the event the winner takes the lump-sum payout, that bill is going to come due for the current tax year, which puts a little more urgency behind tax-mitigation strategies than longer-term spending plans. “Whoever gets this big lottery may or may not be aware of the tax bill that’s going to come along,” Zohlen says.

As an alternative to the $747.2 million lump-sum payment, lottery winners have the option of taking annuitized payments over 29 years of the entire $1.28 billion jackpot. Most winners opt for the lump sum, which some advisors see as a smart move, thinking that they can put that money to work for the clients with investments right away. On the other hand, there is an argument for taking the larger prize as an annuity, especially if the winner is relatively young.

Charitable contributions can help offset the winner’s tax liabilities, but scrambling to find an array of worthy causes before the tax deadline can be daunting. Instead, advisors suggest parking the money the winner wants to set aside for charitable giving in a structure that will allow them to bank the tax deduction while postponing the detailed decision making about giving to specific causes.

“If you have any charitable intent, the year they win that lottery they can make a sizable donation to a donor-advised fund,” Zohlen says. “You don’t have to make a decision about who the genuine recipients will be until you want to.”

A lottery winner could accomplish the same end by setting up a private foundation, though that’s a much more drawn-out process than giving to a donor-advised fund, which is an established vehicle managed by a sponsoring organization that holds the assets and disburses them over time at the direction of the donor.

Tax mitigation is only the beginning of the financial plan a lottery winner should develop. The core of the financial plan—a client’s goals, time horizons, cash flow management—isn’t fundamentally different for the ultrawealthy as it is for typical clients. Viktorin starts with a who/what/when format: who were the people in your life (before winning the lottery) that mattered; what do you hope to accomplish, and when.

An overnight windfall of hundreds of millions of dollars obliterates some of the normal concerns of a financial plan (such as saving enough money for retirement), but some fundamental considerations still apply.

“Previously your goals might have been to retire at age 60. Now your opportunity is you can retire tomorrow,” Coffey says. “But what does that mean for you?”

She suggests advisors try to help clients visualize what their life would be like—day to day—if they immediately exited the workforce. “Maybe you really enjoy work. Maybe you started your own business and you don’t want to retire,” she says.

Barron’s Advisor Finder

Winning the lottery could have a multiplier effect that doesn’t alter a client’s primary objectives, but makes it possible for them to widen the lens. Think about saving for children’s college tuition. Winning the Mega Millions will probably be enough to comfortably send all of your kids to the college of their choice. But what about their kids? Working with an advisor, a lottery winner could set up a structure designed as a “self-perpetuating fund for anybody in your family who wants to go to college,” Coffey says.

“You can change not just your own life but your family’s life,” she says. “Your goal hasn’t necessarily changed. It’s just broadened.”

In drawing up a financial plan for the latest millionaires, advisors will want to talk to clients about their spending goals and how they envision their lifestyle changing. It might not be the first—or second or third—conversation they have with a suddenly wealthy client, but at some point they will want to start plugging hard numbers into the cash-flow analysis component of the financial plan.

“If the lifestyle you want is going to cost you $25,000 a month before taxes for the rest of your life, I can calculate that,” Zohlen says. “We can say this is how much you can protect. This is how much is off limits.”

Outside of that core level of assets, she tells clients they can spend “anything you want but you must, must protect this if you don’t want to go back to work or be one of those sad stories you read about in the paper.”

And those stories abound. As exciting as the prospect of winning the lottery is, it can also bring copious amounts of unwanted attention, especially if you don’t live in one of the 11 states that allow multistate lottery winners to remain anonymous.

“One of the common things that happens when someone has something like a lottery windfall is friends and family come out of the woodwork with their hands out,” Zohlen says. “There are some things the planner can do to help the recipient of that to put some structure around that.”

For instance, in 2022, the federal limit on individual gifts is $16,000. Any amount above that, the giver must notify the IRS—not that the gift itself triggers an immediate tax event, but it will count against the lifetime estate and gift tax exemption. 

There’s also the general awkwardness of being in a position of great and sudden wealth, and feeling beset by requests for money. Most people want to be generous, but within reasonable limitations.

The “structure” Zohlen suggests building around giving could include setting up a written process for submitting requests for money, sort of like applying for a grant from a foundation, but at an individual level.

Alternatively, lotto winners could get in front of the process and make a list of important friends and family, deliver each one the maximum gift of $16,000, and make it clear that that’s the end of it. Zohlen says that discussion would end along the lines of: “I love you. God bless you. Have fun with it, but don’t ask me for more.”

It’s tempting to view a payout of almost $750 million or some comparable sum as forever money. And it should be. But if there is no plan to manage the cash flow, and no guided strategy for handling investments with all the considerations advisors bring to the table, even nine-figure windfalls can dissipate quickly.

“The number one thing that can happen is you stick your head in the sand and you don’t plan at all, and then it just kind of gets away from you,” Viktorin says. “When there’s no plan, that’s when it can erode really quickly. And it’s sad to see.”

A sudden, massive wealth event can move quickly from euphoric to scary, she says. “Sometimes you can feel like you’re in the eye of the storm that’s happening.”

But advisors can both aid clients with the challenges that can come with sudden wealth and help them keep perspective.

For Coffey, that starts with a reminder of the obvious: Cheer up, you just won the lottery!

“Ultimately this is a great thing. While there’s a lot of responsibility with it, maybe take off a piece and go have some fun with it before you get into the rest of these topics,” she says. “You should be able to have some fun with it as well as taking on this responsibility.”

Write to advisor.editors@barrons.com

Fri, 29 Jul 2022 14:07:00 -0500 en-US text/html https://www.barrons.com/advisor/articles/mega-millions-lottery-winner-financial-advisor-51659120468
Killexams : Plc Prudential Sells 4,500,000 Shares of Jackson Financial Inc. (NYSE:JXN) Stock

Jackson Financial Inc. (NYSE:JXNGet Rating) major shareholder Plc Prudential sold 4,500,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 3rd. The shares were sold at an average price of $27.00, for a total value of $121,500,000.00. Following the completion of the transaction, the insider now directly owns 7,635,443 shares in the company, valued at $206,156,961. The transaction was disclosed in a filing with the SEC, which is available at this link. Large shareholders that own more than 10% of a company’s stock are required to disclose their transactions with the SEC.

Plc Prudential also recently made the following trade(s):

  • On Monday, June 13th, Plc Prudential sold 4,200,000 shares of Jackson Financial stock. The shares were sold at an average price of $40.79, for a total value of $171,318,000.00.

Jackson Financial Price Performance

Shares of Jackson Financial stock opened at $28.15 on Friday. Jackson Financial Inc. has a one year low of $23.56 and a one year high of $47.76. The stock’s fifty day moving average is $28.43 and its 200 day moving average is $36.31. The stock has a market cap of $2.43 billion and a P/E ratio of 1.12. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.34 and a current ratio of 0.34.

Jackson Financial (NYSE:JXNGet Rating) last announced its earnings results on Tuesday, May 10th. The company reported $3.94 EPS for the quarter, missing analysts’ consensus estimates of $4.53 by ($0.59). Jackson Financial had a return on equity of 20.22% and a net margin of 29.79%. The company had revenue of $4.30 billion during the quarter, compared to the consensus estimate of $1.80 billion. Sell-side analysts anticipate that Jackson Financial Inc. will post 13.63 earnings per share for the current year.

Jackson Financial Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 16th. Shareholders of record on Thursday, June 2nd were paid a $0.55 dividend. The ex-dividend date of this dividend was Wednesday, June 1st. This represents a $2.20 dividend on an annualized basis and a yield of 7.82%. Jackson Financial’s payout ratio is presently 8.74%.

Institutional Investors Weigh In On Jackson Financial

A number of institutional investors have recently bought and sold shares of the business. Apollo Management Holdings L.P. purchased a new stake in Jackson Financial in the 4th quarter worth $439,049,000. Sessa Capital IM L.P. increased its stake in Jackson Financial by 5.8% in the 4th quarter. Sessa Capital IM L.P. now owns 4,759,038 shares of the company’s stock worth $199,071,000 after buying an additional 260,301 shares in the last quarter. Dodge & Cox increased its stake in Jackson Financial by 1.1% in the 4th quarter. Dodge & Cox now owns 3,819,494 shares of the company’s stock worth $159,769,000 after buying an additional 40,700 shares in the last quarter. EJF Capital LLC increased its stake in Jackson Financial by 2,218.3% in the 1st quarter. EJF Capital LLC now owns 1,759,620 shares of the company’s stock worth $77,828,000 after buying an additional 1,683,720 shares in the last quarter. Finally, Ruffer LLP increased its stake in Jackson Financial by 88.7% in the 2nd quarter. Ruffer LLP now owns 1,361,152 shares of the company’s stock worth $36,404,000 after buying an additional 639,877 shares in the last quarter. Hedge funds and other institutional investors own 81.17% of the company’s stock.

Wall Street Analysts Forecast Growth

JXN has been the syllabu of several research analyst reports. Morgan Stanley lowered their price target on Jackson Financial from $40.00 to $33.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 6th. Evercore ISI lowered their price target on Jackson Financial from $40.00 to $35.00 and set an “in-line” rating on the stock in a report on Wednesday, July 6th. Jefferies Financial Group lowered their price target on Jackson Financial from $55.00 to $45.00 in a report on Monday, May 16th. Finally, The Goldman Sachs Group lowered their price target on Jackson Financial from $40.00 to $36.00 and set a “neutral” rating on the stock in a report on Monday, June 6th. Four analysts have rated the stock with a hold rating and one has assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $35.80.

Jackson Financial Company Profile

(Get Rating)

Jackson Financial Inc, through its subsidiaries, primarily provides a suite of annuities to retail investors in the United States. The company operates through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The Retail Annuities segment offers various retirement income and savings products, including variable, fixed index, fixed, and immediate payout annuities, as well as registered index-linked annuities and lifetime income solutions.

See Also

Insider Buying and Selling by Quarter for Jackson Financial (NYSE:JXN)

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Sat, 06 Aug 2022 20:12:00 -0500 admin en text/html https://www.defenseworld.net/2022/08/07/plc-prudential-sells-4500000-shares-of-jackson-financial-inc-nysejxn-stock.html
Killexams : First American Financial Co. (NYSE:FAF) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of First American Financial Co. (NYSE:FAFGet Rating) have been given a consensus rating of “Moderate Buy” by the six brokerages that are covering the stock, MarketBeat.com reports. Two analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $64.68.

FAF has been the syllabu of several exact research reports. BTIG Research cut their target price on shares of First American Financial from $81.00 to $79.00 and set a “buy” rating on the stock in a research report on Friday, July 8th. Barclays dropped their price target on shares of First American Financial from $87.00 to $83.00 and set an “overweight” rating on the stock in a research report on Monday, July 11th. Finally, Truist Financial lowered their price objective on shares of First American Financial from $86.00 to $77.00 and set a “buy” rating for the company in a research note on Wednesday, July 13th.

First American Financial Stock Up 0.3 %

FAF stock opened at $55.41 on Friday. First American Financial has a 12 month low of $48.81 and a 12 month high of $81.54. The firm has a market cap of $5.77 billion, a P/E ratio of 6.74 and a beta of 1.21. The company’s 50-day moving average price is $55.10 and its two-hundred day moving average price is $61.68.

First American Financial (NYSE:FAFGet Rating) last released its earnings results on Thursday, July 28th. The insurance provider reported $2.23 EPS for the quarter, beating the consensus estimate of $1.62 by $0.61. First American Financial had a net margin of 10.11% and a return on equity of 15.41%. The firm had revenue of $2.06 billion for the quarter, compared to analyst estimates of $2.12 billion. During the same period last year, the firm earned $2.13 EPS. The business’s quarterly revenue was down 9.0% compared to the same quarter last year. Equities analysts predict that First American Financial will post 6.41 EPS for the current year.

First American Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 15th. Stockholders of record on Wednesday, June 8th were paid a $0.51 dividend. The ex-dividend date of this dividend was Tuesday, June 7th. This represents a $2.04 annualized dividend and a dividend yield of 3.68%. First American Financial’s payout ratio is 24.82%.

Insider Transactions at First American Financial

In other news, COO Christopher Michael Leavell sold 39,206 shares of the company’s stock in a transaction on Monday, May 23rd. The shares were sold at an average price of $59.61, for a total value of $2,337,069.66. Following the completion of the sale, the chief operating officer now owns 166,465 shares in the company, valued at approximately $9,922,978.65. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 3.20% of the company’s stock.

Institutional Trading of First American Financial

Several institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. boosted its holdings in shares of First American Financial by 2.1% in the 1st quarter. Vanguard Group Inc. now owns 12,031,143 shares of the insurance provider’s stock worth $779,858,000 after buying an additional 245,974 shares during the last quarter. HG Vora Capital Management LLC lifted its holdings in First American Financial by 5.3% during the first quarter. HG Vora Capital Management LLC now owns 10,850,000 shares of the insurance provider’s stock valued at $703,297,000 after purchasing an additional 550,000 shares during the last quarter. BlackRock Inc. lifted its holdings in First American Financial by 3.3% during the first quarter. BlackRock Inc. now owns 9,629,986 shares of the insurance provider’s stock valued at $624,215,000 after purchasing an additional 303,214 shares during the last quarter. State Street Corp lifted its holdings in First American Financial by 2.9% during the first quarter. State Street Corp now owns 3,193,170 shares of the insurance provider’s stock valued at $206,981,000 after purchasing an additional 90,276 shares during the last quarter. Finally, LSV Asset Management lifted its holdings in First American Financial by 8.0% during the first quarter. LSV Asset Management now owns 2,499,311 shares of the insurance provider’s stock valued at $162,005,000 after purchasing an additional 185,694 shares during the last quarter. Institutional investors own 84.95% of the company’s stock.

First American Financial Company Profile

(Get Rating)

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Specialty Insurance segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services.

Read More

Analyst Recommendations for First American Financial (NYSE:FAF)

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Sat, 06 Aug 2022 21:08:00 -0500 admin en text/html https://www.defenseworld.net/2022/08/07/first-american-financial-co-nysefaf-receives-average-recommendation-of-moderate-buy-from-brokerages.html
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