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Exam Code: CVA Practice test 2023 by Killexams.com team CVA Certified Valuation Analyst (CVA) Certified Valuation Analyst® (CVA®) Determine, Defend, and Maximize Company Value™
Business valuation is the "Gold Rush" of the century. 10 million small businesses will change hands over the next 10 years. Could you confidently advise your clients if they came to you faced with these issues?
An opportunity arises to sell or merge the business.
They are faced with transitioning the business to family members or other partners.
They are looking to expand the business and need to secure capital.
They are taking on new partners and need to determine buy-in price.
They are reaching retirement and considering an exit strategy.
Business partners or shareholders are exiting, requiring the business to be divided or dissolved.
They are embroiled in financial litigation.
They want to focus energies to grow company value.
Establish your authority in matters of value! Bolster your reputation with your clients. Enhance your credibility within the business community. Demonstrate competency to the courts that you can articulate business value.
I. OVERVIEW 4.0%
A. Purpose for business valuation 0.5%
1. Financial accounting
2. Tax valuations
3. Litigation
4. Merger and acquisition
B. Standards of value 1.5%
1. Definitions of standards of value, including
a) Fair market value (U.S. based definition as starting point)
b) Statutory fair value
c) Financial reporting fair value
(1) IFRS
(2) U.S. GAAP
d) Investment (strategic) value
e) Intrinsic (fundamental) value
2. Relationship between purpose of the valuation and standard of value
C. Premise of value 0.5%
1. Going concern
2. Assemblage of assets
3. Liquidation (orderly or forced)
D. Principles of value 1.0%
1. Value is determined as of specific point in time
2. Value reflects prospective cash flow
3. Value reflects the level of risk into the rate of return
4. Value is influenced by liquidity
E. Levels of value 0.5%
1. Lack of control (minority vs. control)
2. Marketable vs. non-marketable
3. Strategic and investment value
II. PROFESSIONAL RESPONSIBILITIES AND STANDARDS 4.5%
A. NACVA Standards 1.5%
B. Ethical considerations 1.0%
C. Communicating and reporting analysis and results 1.0%
D. Roles of the valuation analyst in litigation services 1.0%
III. ENGAGEMENT ACCEPTANCE AND PLANNING 3.0%
A. Defining the engagement 1.0%
1. Valuation date and its importance
2. Structure of the entity
3. Interest being valued
4. Purpose and objective of valuation
5. Standard of value and premise of value
6. Conflict checks
B. Engagement Letters 1.0%
1. Purpose
2. Content
C. Acceptance 1.0%
1. Experience
2. Staffing
3. Expectations
IV. QUALITATIVE ANALYSIS 9.0%
A. International Sources of Data 1.5%
B. Economic Environment 1.5%
1. Macro-environment
2. Micro-environment
3. Relationship of economic activity to the valuation
C. Industry background 3.0%
1. Economic data
2. Structure, trends, and life cycle
3. Market and competitive analysis
D. Company background 3.0%
1. Company structure and ownership
2. Site visit and interviews with key personnel
3. History and nature
4. Economic data (cost structure, pricing power, marginal analysis)
5. SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats)
1. Measures of central tendency (arithmetic, harmonic, geometric means)
2. Measures of dispersion (including variance and standard deviation)
3. Statistical strengths of numerical relationships (including covariance, correlation, coefficient of determination, and coefficient of variation)
4. Linear regression
D. Types of benefit streams and selection 3.5%
1. Selection of appropriate time periods (including mid-year convention)
2. Selection of appropriate type of income/cash flow
3. Growth assumptions
a) Trend line projected
b) Constant
c) Erratic
d) Level
e) Declining growth approaches
E. Historical vs. projection based on considerations
F. Relating effects due to economic/industry events and trends
G. Pass-through entities – tax effecting of the benefit stream
VI. VALUATION APPROACHES 28%
A. Income approach 10%
1. General theory
2. Defining applicable income/cash flow
3. Sources of data
4. Capitalization vs. discount rates
5. Commonly used methods
a) Discounted economic income/cash flow method (DCF) (multi-stage model)
(1) The method is applied using cash flow available to invested capital
(2) The method is applied using cash flow available to equity
b) Capitalized economic income/cash flow method (CCF), including Gordon Growth
Model (constant growth model)
(1) The method is applied using cash flow available to invested capital
(2) The method is applied using cash flow available to equity
c) Excess earnings (cash flow) method
d) Dividend paying capacity
B. Market approach 8.0%
1. General theory
2. Commonly used methods
a) Transactions in subject companys stock
b) Transactions/sales of companies similar to subject
(1) Guideline public companies
(a) General theory
(b) Selecting guideline companies
i) Sources of data
ii) Size adjustments
(c) Equity vs. invested capital (including multiples)
(d) Selection of appropriate time periods
(e) Selection of appropriate multiples
i) Adjusting for growth, size, and company specific risk
(2) Guideline merged and acquired companies
(a) General theory
(b) Sources of data/relevant transactional databases
(c) Consideration of the selection of data points
C. Asset Approach 6.0%
1. General theory
2. Sources of data
3. Commonly used methods
a) Book value
b) Net tangible value
c) Adjusted net asset method (intangible and tangible assets)
d) Excess earnings method
e) Liquidation method (forced or orderly)
4. Identifying and valuing intangible assets
a) Approaches and methods
b) Estimated life
c) Impairment
5. Off-balance sheet and unrecorded items (including tax issues)
D. Sanity Checks 2.0%
1. General theory
2. Sources of data
3. Commonly used methods
a) Industry formulas (“Rules of Thumb”)
b) Justification of purchase
E. Reconciliation of indicated values 2.0%
VII. COST OF CAPITAL CONCEPTS AND METHODOLOGY, AND OTHER PRICING MODELS 17.5%
A. Capital asset pricing model (CAPM) 6.0%
1. Risk free rate
2. Equity risk premium
3. Beta (ß) including un-levered and re-levered
B. Build-up method and Modified CAPM 5.5%
1. Risk free rate
2. Equity risk premium
3. Beta (ß) including un-levered and re-levered
4. Size risk premium
5. Industry risk premium
6. Company specific risk
7. Long-term sustainable growth
8. Other
C. Weighted average cost of capital 4.0%
D. Converting after tax risk rates to pre-tax rates 1.0%
E. Other recognized methods (e.g. Gordon Growth, Arbitrage Pricing, Fama- French Three Factor, Market Multiples, Risk Rate Component Model) 1.0%
VIII. DISCOUNTS, PREMIUMS, AND OTHER ADJUSTMENTS 13%
A. Levels of value and effect on discounts and premiums 2.0%
1. Synergistic value
2. Control value
3. Non-controlling, marketable value
4. Non-controlling, non-marketable value
B. Adjustments for Control Issues 3.5%
1. General theory
2. Sources of data
3. Ownership characteristics
4. Magnitude
5. Relationship to how benefit stream is defined
C. Adjustments for Marketability Issues 3.5%
1. General theory
2. Sources of data
3. Ownership characteristics
4. Restrictions on transferability
5. Magnitude
6. Models
D. Discounts and premiums—understanding the empirical studies 2.0%
E. Subsequent events 1.0%
F. Other valuation discounts and adjustments (e.g. Key Person, Blockage, Restrictive Agreement, Lack of Voting, Lack of Liquidity, Contingent Liabilities) 1.0%
IX. SPECIAL PURPOSE VALUATION 5.5% %
A. Intangible assets 2.0%
B. Debt securities 0.5%
C. Convertible securities 0.5%
D. Preferred stock 0.5%
E. Stock options 0.5%
F. Voting vs. Non-voting stock 0.5%
G. Professional vs. practice goodwill 0.5%
H. Other special purpose valuations (e.g. Fair Value, Mergers and Acquisitions, Pension Benefits, Insurance policies) 0.5%
Total 100% Certified Valuation Analyst (CVA) Financial Certified pdf Killexams : Financial Certified pdf - BingNews
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https://killexams.com/exam_list/FinancialKillexams : You Should Get A Financial AdvisorNo result found, try new keyword!A latest survey from the financial advisory fintech Intelliflo found that while 59% of Americans want financial advice, only 32% turn to registered financial advisors. At the same time, more than 40% ...Thu, 17 Aug 2023 01:50:59 -0500en-ustext/htmlhttps://www.msn.com/Killexams : Licenses and Certification
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Individual Professional Licenses
UAB may pay a UAB employee's annual professional license fee with documentation that all three of the following conditions are met:
there is a legitimate UAB business purpose for the expenditure;
the official UAB job description maintained by UAB Humans Resources Management requires that individuals holding that UAB job classification maintain that specific type of professional license; and
the official practice of that major UAB unit (school, Hospital, or executive level) is to pay that annual professional license for all individuals in that major unit in that official UAB job classification
However, if all three of these conditions are not met, then the cost must be treated as a personal expense.
Each major unit of UAB (school, Hospital, or executive level) should review their professional license policy annually, and contact the Controller's Office to request changes. Upon approval of each revised policy, the Executive Director of Accounting will notify the fiscal officer and update the official list of approved individual professional licenses on the web.
Professional licenses should be charged to Oracle Object Code 8705031 "Licenses."
Individual Intern/Resident Professional Licenses
In those instances where a UAB Intern/Resident (Assignment Category 07) requires a professional license beyond the basic license to practice or perform services requires as part of their official training program, UAB may pay both the initial and annual professional license fee provided that the official practice of the school/unit providing the training program is to pay the fee for all Interns or Residents in that training program.
Licensure Exams
Even though UAB will fund the cost of maintaining a professional license once the minimum qualification is met (but only under the conditions stated above), an employee's costs of becoming certified are treated as personal expenses; that is, UAB will not pay the costs of preparing for a licensing certification exam, the test fee itself, travel associated with taking the exam, etc.
UAB Business Licenses
Because UAB is a governmental entity of the State of Alabama, it is exempt from the business license requirements of the City of Birmingham, Jefferson County, and the State of Alabama. This applies to any revenue-generating activity of any organizational unit of UAB, but only if those revenues are appropriately included in UAB's audited financial statements as UAB revenues. Therefore, business license fees should not be paid by UAB.
The certificate is composed of 18 credits of masters-level graduate coursework with the primary goal of providing students with the education, training and skills necessary to be able to sit for the Certified Financial Planner (CFP) examination.
The curriculum is aligned with the CFP® Board’s Principal Knowledge courses and covers principles and practices of essential areas of financial planning, including:
Wealth Management
Investment Management
Tax Planning
Estate Planning
Insurance and Retirement Planning
CFP students enjoy the opportunity to work with clients at the Low-Income Tax Clinic for graduate credit and CFP test experience.
Have Questions? For more information about the CFP Graduate Certificate, including tuition and fee information, please email Justine Tydings, our Sr. Recruiting Coordinator.
The UW College of Business and the certified Financial Planning certificate program are nationally accredited by AACSB.
Students must take the following required courses to receive their certificate*:
*Accelerated path candidates — candidates who bypass the other education requirements — are only required to take FIN 5800: CFP Capstone.
As a CFP® professional, you can assist with developing and executing financial strategies for your clients. You will help others create financial goals based on existing financial conditions and risk tolerance. CFP®s can offer guidance on managing debt, picking investments, preparing for retirement and setting aside money for both short- and long-term goals.
Certified Financial Planner Careers
Here are just a few places our University of Wyoming alumni are making a difference with a certified Financial Planning certificate:
University of Wyoming Foundation
Wyoming Retirement System
Wells Fargo Advisors
Northwestern Mutual
Raymond James
Creative Planning
Merrill Lynch
Golden Tree Asset Management
Frontier Asset Management
Hiltop Bank
Edward Jones
Financial Planning Certificate Program Highlights
In 2021, the University of Wyoming's certified financial planning certificate program had a 100% pass rate on the CFP exam.
100% Online
Due to the entirely online nature of our curriculum, you can continue working according to your usual schedule. We want this program to benefit a wide range of people, whether you're pursuing another graduate degree or acquiring your Financial Planning certificate as a non-degree-seeking student. Developing your career doesn't have to make your daily life more difficult or demanding.
Exceptional Faculty
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Thu, 01 Jun 2023 19:05:00 -0500entext/htmlhttps://www.uwyo.edu/uw/degree-programs/certified-financial-planning.htmlKillexams : What is a Certified Financial Planner (CFP) and what do they do?
Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.
A Certified Financial Planner (CFP) is a trade-industry designation for advisors and other professionals in the financial field.
CFPs must have a certain amount of experience, pass a rigorous exam, and commit to ongoing financial education.
CFPs advise their clients on courses like retirement, investments, tax planning, and risk management.
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Working with a Certified Financial Planner (CFP) can often be a good idea if you're in the market for financial guidance. A CFP is one of the most experienced and knowledgeable financial advisors you'll find. They are held to a strict code of ethics and professional standards that have to be continually maintained. CFPs offer their clients a very specific level of expertise.
Here is a closer look at what CFPs do and what you need to know before working with one.
What is a CFP?
A CFP is a financial professional who has completed all requirements to earn certification from The Certified Financial Planner Board of Standards, Inc. (CFP Board). This encompasses years of education in 72 financial specialties, thousands of hours of practical experience, and ongoing adherence to high ethical standards and certification requirements.
CFPs are usually fiduciaries. "A fiduciary is a legal and ethical standard that requires financial advisors to act in their clients' best interest at all times," says Chloe Wohlforth, CFP and partner at Angeles Wealth Management.
This means CFPs are bound to always deliver advice that is in the best interest of their clients. They also take a holistic approach to financial planning, looking at both long-term and short-term goals.
"Establishing goals will help you keep on track for financial success by holding you accountable," explains Jordan Gilberti, CFP and senior lead planner at Facet. "It serves as a way to measure progress, tweak the plan as needed, and curb spending toward aspects that we may not prioritize as much as reaching our goals."
The cost of working with a CFP can vary greatly depending on what services they offer, how much experience they have, whether they work as part of a firm or as an independent advisor, etc. Because CFPs have a fiduciary responsibility to their clients, they often use a fee-only model for compensation. That means they don't accept commission for products they sell or recommend and charge the client directly for their services. This could be through a retainer, a percentage of earnings, or some other arrangement that is agreed upon by both parties.
What is financial planning?
Financial planning is what it sounds like: making a plan to reach your financial goals over time.
"The purpose of a financial plan is to achieve personal and professional goals through strategic allocation of resources, management risks, enabling us to live our lives to the fullest," says Gilberti.
Because everyone's goals and resources are different, financial planners can help people use tools like retirement accounts and investments strategically to achieve what they want in the long term.
"The critical step to make sure a financial plan is successful is to make sure that the data going into the plan is accurate," says Wohlforth. "Taking time to identify what expenses truly look like today and then think how those numbers might change in the future is key to the validity of the plan and therefore its successes in keeping clients on course."
You don't have to hire a CFP or another type of financial advisor to make a financial plan, but their expertise means they have a full picture of the tools at your disposal and the smartest way to use them. Some people also like working with a financial planner for sheer accountability. Sure, you could create your own financial plan — but will you?
What does a Certified Financial Planner do?
CFPs work with individual clients in any number of areas related to personal finance advising and planning. To earn their certification, CFPs have to:
Complete extensive coursework in financial planning specialties
Pass a six-hour test that tests them in eight core courses they are likely to come across in real-life planning situations
Complete at least three years of financial planning work with actual clients
Comply with the CFP Board's Code of Ethics and Standards of Conduct
CFPs may be sole practitioners who solely provide financial planning services, wealth management advice, analysis, or investment and portfolio management. Some are credentialed professionals in a field related to financial planning who choose to earn CFP certification to add to their main practice. You'll often find CPAs, attorneys, insurance agents, and other legal, financial, or business professionals with CFP certification.
"Often questionnaires are sent to gather information and software is used for data aggregation and analysis. That said, every financial plan must start with a conversation, and then what the output looks like will carry from client to client depending on what type of information is most useful to them," says Wohlforth.
A CFP may provide one or more services related to any of the specialty areas they've studied. Some of these include saving for retirement or college, creating a trust or fund for charitable giving, helping develop financial plans to attain a short-term goal, guiding your investment strategies, assessing risks to your wealth, and other specialties they choose to focus on.
Specifically, all CFPs have experience with each of the following:
Professional conduct and regulation: Consumer protection laws, fiduciary responsibilities, ethical obligations, how financial institutions work, and what regulations govern them
General principles of financial planning: The process of financial planning, cash flow management, working with financial statements, debt management, financial counseling, financing strategies, money concepts and calculations, financial values, attitudes, biases, and behaviors
Education planning: Analyzing needs, savings options, how financial aid works, strategies around gifts and income tax, and vehicles for financing education
Risk management and insurance planning: Risk and insurance principles, analysis, and evaluation; health, disability, long-term, life, property, and casualty insurance; annuities; and business insurance needs
Investment planning: Risk evaluation, investment concepts and measures of returns, asset allocation, portfolio development, diversification, and analysis, tax issues related to investments, valuation of stocks and bonds, and investment strategies (including alternative investments)
Tax planning: Basics of tax law and calculations, how taxes apply to businesses, trusts, property transactions, and estates, how to reduce and manage liabilities, and how to manage charitable giving
Retirement savings and income planning: Analyzing retirement needs and advising the best plans for clients, how entitlement programs impact retirement needs, regulatory and distribution considerations, selecting the right plan for a business, and planning to pass a business on
Estate planning: Tax implications and strategies for transferring property, estate liquidity and taxation, business transfers, how laws and regulations apply to marriages and non-traditional relationships, and trusts
CFP vs. CFA
In your search to find a financial advisor or planner, you will certainly come across many CFPs. You may also find financial pros who are Chartered Financial Analysts (CFAs). This is a certification similar to what CFPs earn. However, the CFA program focuses only on investment analysis, where CFPs have a much broader scope of experience.
CFP vs. Financial planner
Financial planners are financial experts who take your whole financial life into consideration when developing a financial plan and strategies for long-term and short-term goals. They often offer services for tax planning, retirement plans, budgeting, investment guidance, insurance, and more.
Regular financial planners aren't regulated by the CFP Board of Standards and don't have the same ethical and legal obligations that Certified Financial Planners do. In fact, financial planners don't technically need to be licensed to provide finanical planning services. Unlicensed planners must then work with other licensed advisors or consultants to coordinate specific transactions.
CFPs, on the other hand, offer the same services as financial planners, but they also have the accreditation and ethical obligations to act in their client's best interest. If you want to ensure you're receiving the best advice, a CFP is the way to go.
If you're mainly focused on investment strategies and portfolio advice, a financial advisor may be a better fit.
"Investing can be a good way to grow wealth over the long term, and offers the potential for higher returns compared to a typical checking or savings account," says Gilberti. "It is important to consult with a CFP professional to ensure you are choosing investments that reflect your time horizon and risk tolerance."
How to find a CFP
One of the easiest ways to find a CFP in your area is to search on LetsMakeAPlan.org, which is the Certified Financial Planner Board of Standards' consumer site. There, you can input your location, the radius you'd like to search, and the planning services you're looking for. If you already know the name of a CFP and would like to find more information about them, you can search for their last name, as well.
Search results will show an address, map, year of certification and their current certificate (if applicable), planning services offered, languages spoken, and any disclosures, disciplinary actions, or bankruptcies involving an individual CFP. If you want to verify the credentials of someone who says they are a CFP, you can do so at CFP.net.
Once you find a CFP you might want to work with, plan on interviewing them to see if they are a good fit for your needs. Consider asking about:
Education and credentials
Specific services offered and their experience in these areas
Their approach/philosophy when it comes to financial planning
What types of clients they usually work with
Fee structure and fiduciary responsibilities; does commission play any role in their business?
Who will be working on your account and personally with you
Any disciplinary or legal actions associated with the CFP or their firm
Remember, a CFP works for you and you need to feel comfortable with them. Don't feel like you have to hire any one person over another. Go with whoever has the best qualifications to help achieve your goals and the right chemistry to build a long-term professional relationship.
CFP frequently asked questions (FAQs)
A Certified Financial Planner is a professional who has completed all requirements to earn certification from the CFP Board. A CFP can be an expert in one or more fields like retirement, college savings, financial planning, investing, wealth management, and more.
You may need a financial planner if you're struggling to create a financial plan, don't know how to reach your financial goals, or are having trouble managing your money. Financial planners are great resources and can help with a wide range of courses including savings, wealth management, and investing.
How much a financial planner costs varies for each individual planner. It also changes based on how they charge. Some financial planners earn commissions, while others are fee-only. Fee-only means they may charge a flat fee, hourly fee, or a percentage of the total assets they are managing for you. For example, it may cost anywhere from $100 to $300 an hour, or $1,000 to $3,000 a year.
A financial planner helps clients with budgeting, financial planning, purchasing insurance, and reaching long-term and short-term financial goals. Financial advisors, on the other hand, often focus on helping clients reach investing goals, managing portfolios, and wealth-building strategies.
The best way to find a financial planner is by searching online for one in your area. If you want to find a CFP, you can visit the Certified Financial Planner Board of Standards' consumer site, LetsMakeAPlan.org. You can also verify a CFP's credentials with CFP.net.
Should you hire a certified financial advisor?
If you're in the market for someone to help you with just about anything related to your financial health or future, looking into CFPs in your area might be a good place to start. These professionals are held to a very high standard of education, ethics, and experience that is ongoing to maintain certification. This may supply you some reassurance that your finances are in good hands.
That doesn't mean financial planners who are not CFPs are any less qualified to meet your needs. It all comes down to what you want to get out of your relationship with your financial guide and what kind of experience you feel they should have. This is a very personal decision that only you can make. Remember that CFP certification is only one tool to use in researching financial professionals — not the only one.
Fidelity Investments, commonly referred to as Fidelity, is a top choice when you’re looking for a low-cost online broker. The same company also offers other financial services to its customers, including the Fidelity Cash Management Account, which shares many features of both savings and checking accounts. In fact, you can use this flexible account to spend, save, or invest your cash.
The Fidelity Cash Management Account doesn’t provide anywhere near the highest interest rates available on savings accounts. Yet at the time of publication, interest rates on the Fidelity Cash Management Account are many times higher than the national average APY for savings accounts and several dozen times higher than the national average APY for checking accounts. The account features no minimum balance requirements, no monthly maintenance fees, free checks, and free ATM access.
The APYs listed below are up to date as of the date of publication of this article. We review the bank’s savings account rates every two weeks and update the information below accordingly.
Account Name
Balance for Highest APY
APY Range
Monthly Fee
Fidelity Cash Management
$0
2.60%
$0
See the best savings account rates today:
Fidelity Cash Management Account: Key Features
Fidelity Cash Management Account Key Features
APY Range
2.60%
Minimum Balance to Earn Highest APY
$0
Minimum Deposit
$0
Withdrawal Limit
No limit on the number of monthly withdrawals. (debit card may have daily spending limits and electronic funds transfer has daily amount limits)
Monthly Service Fee
$0
Interest rates on the Fidelity Cash Management Account are above average, but they’re usually not the highest APYs you can find. Yet the account does come with other notable features that could make it a good fit for individuals who are looking for an alternative to a traditional checking or savings account.
One convenient aspect is the fact that there are no minimum deposit requirements to meet. You don’t have to worry about paying any monthly fees to maintain your account, either. Customers get free online bill pay and free unlimited check writing, as well mobile check deposit capabilities.
Another big perk of using the Fidelity Cash Management Account comes in the form of global ATM fee reimbursement. If you use a Fidelity debit card at an eligible ATM (any ATM with the Visa, Plus, or Star logo) to withdraw cash, Fidelity will credit your account for all ATM fees deducted from your account. In most cases, fee reimbursement happens the same day.
The account offers you the flexibility to invest, save, or spend your money. If you opt not to invest your cash, however, any cash balance you keep in your Fidelity Cash Management Account may be eligible for insurance coverage through the Federal Deposit Insurance Corporation (FDIC).
The Federal Deposit Insurance Corporation will insure your deposits for up to $250,000 (per depositor, per FDIC-insured bank, per account ownership category) if you bank with a financial institution that’s a member of the FDIC.
Keep in mind that the Fidelity Cash Management Account is technically not a bank account but a brokerage account. However, the company works with partner banks to create Fidelity’s FDIC Insured Deposit Sweep Program.
Through the deposit sweep program, Fidelity will distribute the uninvested cash balance from your Fidelity Cash Management Account into different bank accounts—up to $245,000 per account—to make sure you stay below FDIC insurance limits. You could enjoy up to $5 million worth of FDIC insurance through your cash management account, assuming the partner banks in Fidelity’s deposit sweep program have available capacity.
About Fidelity: Other Account Options
Fidelity Investments is not a bank but an online broker that serves over 42 million customers. In addition to its online trading platform, the Boston-based company also offers financial planning services and wealth management advice through human advisors, in addition to offering a robo-advisor service.
The Fidelity investment platform doesn’t offer many traditional deposit accounts, like savings or money market accounts, but you can work with Fidelity to open other types of investment accounts:
Customers that use Fidelity have access to mutual funds, options, currencies, and a variety of fixed-income products like bonds (e.g., treasury bonds, corporate bonds, municipal bonds) and CDs. Investors can also take advantage of their robo-advisor, Fidelity Go, by opening an account, and accessing it on Fidelity’s website or mobile app.
Compare Savings Account Rates
As mentioned, Fidelity’s Cash Management Account does outperform the average national APYs for both savings and checking accounts. The account also exceeds the national average APYs for money market accounts and CDs as well.
According to the FDIC, below are the national deposit rates for a variety of deposit accounts as of July 17, 2023.
Interest checking: 0.07%
Savings: 0.42%
Money market: 0.63%
1-month CD: 0.20%
3-month CD: 1.11%
6-month CD: 1.30%
12-month CD: 1.72%
24-month CD: 1.47%
36-month CD: 1.37%
48-month CD: 1.30%
60-month CD: 1.37%
Of course, if you take the time to shop for interest rates from the best online banks, you’re likely to find APYs that far exceed the national deposit rates above. And you will probably discover interest rates that are higher than what Fidelity offers with its Cash Management Account as well. Yet the free Cash Management Account could still pair well with a Fidelity brokerage account for certain customers.
Does Fidelity Have a High-Yield Savings Account?
Fidelity doesn’t offer its customers traditional deposit accounts like savings accounts—high-yield or otherwise. However, Fidelity partners with several banks to make its Cash Management Account available to customers who want an account to meet basic banking needs and earn interest on their cash savings at the same time. Its APYs, unfortunately, don’t usually stack up to the best high-yield savings accounts available now.
What’s the Minimum Balance for a Fidelity Savings Account?
There are no minimum deposit requirements you must meet to open a Fidelity Cash Management Account. Furthermore, Fidelity doesn’t charge any monthly maintenance fees for the account. And unlike some savings accounts, there’s no minimum balance you must maintain to qualify for a fee waiver, either.
What Do You Need to Open a Fidelity Savings Account?
In most cases, you can open a Fidelity Cash Management Account by completing an online application. You can open both a Fidelity Cash Management Account and a Fidelity brokerage account in a single online session, if you’d like.
If your cash management account features any special trust registrations, however, the process is slightly different. Accounts with trust registrations require you to download, print, and complete a PDF application form.
How Often Does Fidelity Pay Interest?
Interest accrues daily on the Cash Management Account, and Fidelity pays customers interest on the last business day of the month (for balances swept into partner banks through the Deposit Sweep Program). Keep in mind that if you opt to invest the money in your Fidelity Cash Management Account, it’s not eligible to earn interest.
Thu, 08 Jun 2023 09:08:00 -0500entext/htmlhttps://www.investopedia.com/fidelity-cash-management-account-interest-rates-7505903Killexams : How to decide if it's time to hire a financial planner
There are quite a few misconceptions when it comes to working with a financial planner. For one, you might think that financial planners only work with the rich. Or, you may expect that they're just developing investment strategies for clients. However, financial planners are actually versatile in their offerings and, no, you don't already need to have millions of dollars to work with one.
Anyone can benefit from speaking with a financial planner. And in fact, getting advice from a financial planner sooner rather than later can make a huge difference.
Select asked John Loper, a CFP and Managing Director of Professional Practice at the CFP Board, to break down what you should know about working with a financial planner.
What can a financial planner help with?
According to Loper, certified financial planners (CFP's, for short) can typically help with a variety of concerns.
"CFP's can help people who need a strategy to pay off loans or need ways to generate income," he said. "They can also help young families settling down, mid-life individuals who need help maximizing their retirement savings and those who need assistance with tax planning and estate planning."
But their services don't stop there. Here are some other areas where a certified financial planner can be of assistance:
Loper also asserts that CFP's can play a role in providing guidance with what's known as "triggering events," — events that can result in significant changes in income or wealth. Triggering events can include, but aren't limited to, large inheritances, divorce and death.
There are a few ways to go about finding a financial planner. You might want to start by finding out if your employer offers financial planning services as an employee benefit. This could be a good, non-intimidating place to start working with a financial professional. Plus, depending on the company's terms, the service may be complimentary through your employer.
If you already have a specific issue that you need help with, you can try searching for a financial planner using Zoe Financial, which can match you with a list of professionals who specialize in your concerns.
Another option is to use PlannerSearch.org to find a professional in your state. It'll supply you a list of CFP's near you, and you can also filter by specialties such as employee benefits, getting married, getting divorced, bankruptcy, home buying and more.
When should you think about speaking to a financial planner?
Working with a financial planner can be a big and exciting step. Although, not everyone needs to have an ongoing, regular relationship with a financial planner, there are some instances where it might make sense to get a professional's input.
"I don't know that everyone should hire a financial advisor, but everyone could benefit from consulting one upfront to see which services may apply to them," Loper said. "Most planners offer free consults. Until you actually sit down and have an initial conversation you're just guessing what your next step should be."
You need a new perspective on your finances
Maybe you already have an idea of what your next move should be, or how to best manage the rest of your finances. Or, maybe money management just feels really confusing and overwhelming. If you aren't totally confident or wonder if there are better next steps for you to take, you might consider consulting a financial planner. Their expertise may be able to provide an option you haven't yet considered. After taking a bird's eye view of your financial profile they may be able to tell you if there's something else you should be prioritizing.
Loper does caution, however, that sometimes the best next move a person can make with their finances is to do nothing and maintain their current actions. A CFP would be able to clarify if this is really the best thing for their client.
A triggering event has occurred or will occur soon
Triggering events, such as marriage, death, divorce and receiving a large inheritance, can have a large impact on how you manage your money — and sometimes even the progress you're making toward your financial goals.
As these events occur, you may think about getting a professional's opinion on how an influx or a decrease in your wealth can impact what your next financial move should be. Plus, according to Loper, as you move through different phases of life, you start to focus on different areas of your finances.
For example, maybe you go through a divorce right as your kids are about to begin college — a financial planner can help you create a plan for funding your kid's tuition.
You're nearing retirement
Of course, you can also see a financial planner if you need help getting started with saving for retirement. But if you're going to retire soon, it could be helpful to check in with a professional to make a plan for how you're going to make your money last the rest of your life. This can feel like a weight off your shoulders even if you've been using a robo-advisor like Wealthfront or Betterment to make investments that are just right for your risk tolerance and goals. A CFP can help you better analyze your lifestyle expenses and your savings so you can decide on a safe amount of money to withdraw each year.
A financial planner can also help you spot any holes in your retirement plan. Like, maybe you'll need to save a little extra money — which could mean having to remain in the workforce for an extra few years.
Bottom line
While not everyone needs an ongoing relationship with a certified financial planner, pretty much everyone can benefit from having a consultation — and some initial input — with a CFP. Especially since there are a variety of concerns that a financial professional can assist with.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Sat, 29 Jul 2023 17:49:00 -0500entext/htmlhttps://www.cnbc.com/select/how-to-decide-if-its-time-to-hire-a-financial-planner/Killexams : Best Reverse Mortgage Companies of 2023 | MoneyNo result found, try new keyword!View OfferADVERTISEMENT A reverse mortgage is a type of home loan for seniors that works backward. Rather than making payments to your lender, you receive payments — sort of like an advance on your ...Wed, 23 Aug 2023 02:29:24 -0500en-ustext/htmlhttps://www.msn.com/Killexams : What it means to hire a fee-only financial advisor
Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.
Fee-only financial advisors supply financial planning advice for a flat rate fee or percentage of your assets.
They are often fiduciaries and don't receive commissions from the sales of products.
Fee-only and fee-based advisors have several differences to consider when deciding which to work with.
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Seeking a professional to help you manage your money is a great step to achieving your financial goals. But not all financial advisors are the same; some may offer varying services — and more importantly, they may have different fee structures.
A fee-only financial advisor will be one option you'll come across during your search. While many financial advisors are adopting the fee-only structure, some advisors still prefer traditional commissions.
Here's everything you need to know about fee-only financial advisors.
What is a fee-only financial advisor?
A fee-only financial advisor is an advisor who's paid a set rate based on the services they provide a client, rather than being paid based on commission. These types of advisors are often fiduciaries, meaning that they're required to make recommendations that are in a client's best interest.
While that seems like common sense, a lot of other advisors only act on a suitability basis, meaning that they only have to provide recommendations that are suitable for a client's situation.
Fee-only advisors are usually fiduciaries. Fiduciaries advisors are advisors who are legally bound to make financial decisions on a client's behalf instead of their own self-interest. Fiduciary duties include the duty of care, the duty to act in good faith, and the duty of loyalty.
Fee-based financial advisors typically can't be fiduciaries since they earn commissions on certain investment products and services (aka putting themselves before the client).
While Certified Financial Planners (CFPs) can also have fee-only practices, it's important not to confuse the two. Although CFPs take a fiduciary oath to put their client's needs first, they may still be able to receive commissions depending on the firm that they work for. This can cause a potential conflict of interest, as selling certain products or services to a client will provide income to the advisor.
Pros and cons of fee-only financial advisors
Advantages of fee-only advisors
Since a majority of fee-only financial advisors operate as fiduciaries, there are fewer conflicts of interest. Some fee-based advisors may be required to sell certain products from their employers regardless of whether or not it's a good investment strategy for you. While everyone carries their own internal bias, you won't have to be concerned that a fiduciary is selling you financial products for their own benefit.
Fiduciaries also can't accept payments on the recommendations or sale of investments and insurance products, so fee-only advisors are only able to make recommendations solely for your benefit.
Another big perk of using a fee-only advisor is the transparent fee structure. Clients can access hourly rates, ongoing fees, flat fees, or the percentage of assets under management ahead of time. That way individuals can better assess whether or not a specific advisor is in their price range.
Disadvantages of fee-only advisors
While many fee-only advisors are bound to fiduciary duty, you should still be critical of the quality of the advice you're being given. Advisors are still subject to their own internal biases that may skew investment advice. And while many fee-only advisors are fiduciaries, not all of them are. It's important to do your own research, talk with friends and family who have met with this advisor, and double check their credentials before using their services.
Fee-only financial advisors also tend to be pricier. In trying to earn the same amount as fee-based advisors who also earn commissions for selling products, fee-only advisors tend to charge higher fees. For those who need basic saving or budgeting advice, or want to purchase an investment or insurance product and don't mind paying fees, it may be less expensive to work with a different type of advisor.
You may also need to find financial products, such as insurance products and additional services like trading, elsewhere.
"Fee-only advisors don't typically sell insurance, so they refer clients to a third-party insurance broker or salesperson. A fee-based advisor can often sell insurance directly to clients (although it might not be the best policy for the client)," states Matthew Jenkins, CFP and president of Noble Hill Planning, a fee-only financial planning firm.
What's different between fee-only and fee-based advisors?
There are a few differences between fee-only advisors and fee-based advisors. Fee-only advisors do not receive any product sale commissions, such as those through the sale of life or disability insurance, mutual funds, or annuities. They charge clients a fee for their expertise and advice, and the opportunity to work together.
Fee-only advisors can be paid in a number of ways including:
An hourly rate: Advisors are paid per hour for services provided.
A retainer fee: Clients pay an ongoing fee to continue the advisor-client relationship.
A percentage of assets under management (AUM): Advisors take a certain percentage, such as 1%, of all assets a client has under their management.
A flat fee: Some advisors choose to charge a flat fee, typically paid monthly, semi-annually, or annually.
Fee-based advisors can be paid in a number of ways including:
Commission-based model: Fee-based advisors can receive a fee from the sale of insurance and investment products.
A combination of a commission and fee model: Fee-based advisors can receive a fee from the sale of products as well as a fee to supply the client advice.
Through a percentage based on assets under management (AUM): Like fee-only advisors, fee-based advisors can also charge a fee based on the number of assets they manage for a client.
Through an hourly or retainer model: Like fee-only advisors, fee-based advisors can also charge an hourly or ongoing fee for their advice.
There are often downfalls of working with fee-based advisors, mostly because they can still make commission off of product sales.
"One [drawback] of working with a fee-based advisor is that there exists an inherent conflict of interest," says Scott Turner, CFP and fee-only advisor at Rockstar Financial Planning. "You can't tell if they are offering the best products, or they are only limited to selling their own proprietary/limited products offered by the company they work for or represent."
How to find a fee-only advisor
The best way to find fee-only financial advisors is through popular organizations like the National Association of Personal Financial Advisors (NAPFA). You can search on NAPFA's site for fee-only advisors across the country based on zip code, specialization, and rates.
Another popular professional organization of fee-only financial advisors and planners is the Garrett Planning Network. You can advisors based on services and specialties, as well as browse the network's list of virtual advisors.
The Certified Financial Planner Board also provides a directory of financial advisors. But keep in mind that not all of those advisors are fee-only advisors. Advisor profiles include compensations classification, like fee-only and commission-based.
What does a fee-only advisor cost?
Prices for a fee-only advisor tend to vary based on region, expertise, services offered, and years of experience. There's no standard cost or fee adopted by all fee-only financial advisors, but most advisors charge based on assets under management (AUM). AUM is a fee structure that charges you based on how much an advisor is managing for you, typically as a percentage. Percentages often range from 0.25% to 1% per year.
For example, a 0.25% management fee with a $10,000 investment will pay $25 per year.
Financial advisors may decide to charge a yearly or hourly flat fee instead. Flat fees tend to charge between $2,000 and $7,500 yearly, or between $150 to $400 hourly.
Some advisors may charge more depending on their fee structure and the size of your portfolio.
Should you hire a fee-only financial advisor?
Working with a fee-only financial advisor can be a great way for clients to get fiduciary financial advice that's in their best interest. However, not all clients will be able to afford the fee to work with an advisor or can justify the fee they may charge to manage the client's assets.
"Working with a fee-only advisor minimizes conflicts of interest, but just because someone is a fee-only advisor does not inherently mean they have the particular expertise you are looking for," says Brandon Renfro, CFP and owner of Belonging Wealth Management. "You still need to vet a fee-only advisor to make sure they have the appropriate education and training to help you."
While working with a fee-based advisor is also an option, potential clients need to understand the fees they charge and how they get paid in order to determine if it will be a good fit.
Tue, 25 Jul 2023 12:00:00 -0500en-UStext/htmlhttps://www.businessinsider.com/personal-finance/fee-only-financial-advisorKillexams : Waterdrop Inc. Earns Personal Financial Information Protection Capability Certification
BEIJING, Aug. 3, 2023 /PRNewswire/ -- Waterdrop Inc. ("Waterdrop", the "Company" or "we") (NYSE: WDH), a leading technology platform dedicated to insurance and healthcare service with a positive social impact, has recently obtained the Personal Financial Information Protection Capability Certification from the National Financial Technology Certification Center (Beijing). Receiving the certification distinguishes Waterdrop as one of the first insurance brokers to comply with these rigorous standards.
The Personal Financial Information Protection Capability Certification assesses organizations involved in financial services that handle the collection, storage, transmission, and processing of personal financial information. It evaluates compliance with data security laws, regulations, and institutional standards, making it a benchmark in the protection of personal financial data.
Securing the Certification underscores Waterdrop's commitment to establishing a robust protection system for personal financial information throughout its business operations. This system, grounded in data classification and grading, implements protective measures at every stage of the data lifecycle. The certification not only validates Waterdrop's efforts in privacy protection by a third-party organization but also fosters enhanced trust among its stakeholders.
Waterdrop is firmly dedicated to safeguarding personal information and upholds a strong commitment to its protection. To achieve this, Waterdrop fully complies with national cyber security and information technology security regulations, along with adhering to the guidelines of the Personal Information Protection Law of the People's Republic of China. The primary objective is to ensure that all procedures concerning the collection, storage, and utilization of personal financial information are strictly governed by the principles of legality, appropriateness and necessity.
Waterdrop's Data Security Committee has developed and routinely updated the Waterdrop Personal Information Security Compliance Management Measures. These measures cover a comprehensive array of areas, ensuring an enhanced level of protection for users' personal information. These comprehensive protocols further bolster the protection of user data, addressing aspects including collection, usage, storage, third-party management, personal rights management, network security, security incidents, and cross-border data provision.
Sun, 06 Aug 2023 23:18:00 -0500en-UStext/htmlhttps://finance.yahoo.com/news/waterdrop-inc-earns-personal-financial-101000820.htmlKillexams : DOZR's Certified as a Great Place to Work®!
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The leader in marketplace and e-commerce solutions for heavy equipment rentals has earned its certification by Great Places to Work® for the third year in a row.
KITCHENER, Ontario, July 26, 2023 (GLOBE NEWSWIRE) — DOZR is thrilled to have been recognized as a Great Place to Work® for the third year in a row. This remarkable achievement showcases DOZR’s ongoing efforts to maintain a vibrant culture and trust among employees. An independent survey was shared with all employees through the Great Place to Work Institute® Canada and the certification is based on confidential and direct feedback from employees.
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At DOZR, our company culture defines our identity and guides our actions. We are dedicated to imbuing our culture into every aspect of our work, firmly rooted in problem-solving and teamwork. We fearlessly address challenging issues and tackle unspoken problems head-on. Embracing new challenges and fostering mutual learning among team members is at the heart of what we do.
“We truly appreciate each member of our team and receiving this certification, for the third year in a row, further establishes DOZR as a great employer,” said Kevin Forestell, DOZR CEO. “As a scaling tech business, we are proud of how we have adapted and grown over the last eight years. Our identity is shaped by our employees, and it is their collective contributions that drive our success.”
DOZR has always worked to foster an environment where employees are encouraged to bring their genuine and authentic selves to work. Our unwavering commitment to inclusivity and diversity creates a workplace that celebrates individual differences. Beyond the basics like health and dental packages and continuous learning opportunities, we extend our support with in-office policies such as company socials and flexible hours. Our goal is to ensure that each team member feels truly valued and appreciated.
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About DOZR:
DOZR is the leader in marketplace and ecommerce solutions for heavy equipment rentals. DOZR.com offers the world’s largest fleet of heavy equipment and has quickly become the contractor’s first choice for online equipment rentals. DOZR-powered solutions including WebStores enable equipment suppliers and rental houses the opportunity to digitize their businesses through ecommerce. Founded by experienced construction and technology veterans, DOZR connects contractors and rental companies, ensuring a seamless, touchless equipment rental experience.
