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From “ When Does The IRS Start Viewing A ‘ Hobby ’ As A Business ?,” page 12 1 . ____ allows taxpayers to deduct some of the expenses from an activity even without establishing a profit intent . A . Section 183 of the Internal Revenue Code B . Section 174 of the Internal Revenue Code C . The SECURE 2.0 Act D . The Tax Cuts and Jobs Act of 2017
2 . The IRS audit technique guide says examiners should look at what details when deciding if a hobby is actually a business ? A . Are the losses offsetting gains from other businesses ? B . Does the business have recreation elements ? C . Are there years it records no income ? D . All of the above
From “ Faking Growth ,” page 27 3 . What is author Steve Gresham ’ s definition of “ growth ”?
A . Net new assets C . New revenues
B . Net assets
D . New product sales
4 . What does Steve Gresham mean by “ 150 clients on average ”? A . Advisors should prospect 150 new clients per year . B . That number is the optimal client number for an advisory practice . C . That number is too many clients for an advisor to deliver “ retirement planning .” D . The number is misleading . It should be fewer because most clients aren ’ t engaged .
From “ Being Prepared For The Worst ,” page 38
5 . Advisors say to keep at least six months of living expenses in a liquid account for emergencies . In times accounts are frozen , you should consider all but which one of these ? A . Keep some cash on hand C . Keep a fireproof and flood-proof safe B . Keep accounts at separate banks D . Keep traveler ’ s checks
6 . Important documents should be kept how ? A . Online or in the cloud B . At a neighbor ’ s house or office C . At your lawyer ’ s office D . In a home safe or safe deposit box
From “ ESG Funds Meet The Skeptics ,” page 49
7 . A Harvard study found which two things about ESG funds ? A . They perform well while doing good . B . They matter to 89 % of investors and are growing in popularity . C . The majority of their holdings are the same as those of non-ESG funds , yet ESG funds charge more . D . The majority of their holdings are the same as those of non-ESG funds , yet ESG funds charge less .
8 . What political event concerned ESG in March 2023 ? A . Congress reinstated restrictions on using ESG in some retirement and pension plans . President Biden vetoed that . B . The House of Representatives voted to restrict ESG in certain retirement and pension plans , but the Democrat-controlled Senate did not . C . President Biden signed an executive order forcing ESG considerations in retirement and pension plans . D . Former President Trump made a speech against “ woke capitalism .”
From “ Growth And Income In A Tiny Package ,” page 52
9 . The investment mix of the American Funds Capital Income Builder Fund averages roughly __% stocks and __% fixed income . A . 50 , 50 B . 60 , 40 C . 70 , 30 D . 100 , 0
10 . The Capital Income Builder Fund ’ s recent 30-day SEC yield was ____ as of early April while the S & P 500 ’ s dividend yield was ____. A . 2.65 %, 1.65 % B . 1.65 %, 2.65 % C . 3.5 %, 4.6 % D . 4.6 %, 2.65 %
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Financial Advisor ( ISSN 1545-0163 , USPS 021-488 ) is published monthly by Charter Financial Publishing Network Inc ., 499 Broad Street , Shrewsbury , NJ 07702 . Tel : 732-450-8866 . Periodicals postage paid at Red Bank , NJ and additional mailing offices . Subscription Rates : $ 79 per year . Postmaster : Send all address changes to Charter Financial Publishing Network Inc ., P . O . Box 7550 , Shrewsbury , NJ 07702 . Copyright 2022 by Charter Financial Publishing Network Inc . Reproduction , photocopying or incorporation into any information-retrieval system for external or internal use is prohibited unless permission is obtained beforehand from the publisher in each case for a specific article . The subscription fee entitles the subscriber to one original copy only . Unauthorized copying is considered theft . May 2023 Financial Advisor ( Volume 24 , Number 4 )
MAY 2023 | FINANCIAL ADVISOR MAGAZINE | 57