Remember, this not a hard-and-fast rule, but it gives some guidance when you’re dealing with questions that ask you to choose the right portfolio mix. In total, 125 questions will count toward your final score. The Financial Industry Regulatory Authority (FINRA) administers the Series 7 Top-Off, which is a 135 question exam. 3 0 obj Suitability of Annuities on Series 7 Exam. A rule of thumb might help you in these scenarios. The timer of the exam will not stop once the exam starts. 1 0 obj Series 7 Suitability Questions. If you’re about to take the series 7 exam, I urge you to look into suitability studying, as much as possible. If the investor has an income need but prefers an equity portfolio, preferred stock is probably best. The answer file is about 30 pages long and contains content that I use in tutoring sessions. The income level of the investor is especially important when determining whether municipals bonds are appropriate for income objectives. The guidance below will help you choose appropriate investments based on these five factors. %PDF-1.5 Currently, I have written over 350 and I am in the process of creating a file with detailed answers to the questions. 2 comments: B Walks October 15, 2012 at 10:33 AM. A long-term investment horizon is likely to be more greatly impacted by inflation, so stocks are important in the overall picture. Unfortunately I’m already using tc and Kaplan. portalId: "4814188", There must be a way to send a private message, without having these comments show up as part of a topic. A common stock investment, even with a high dividend payout, is usually not the best answer here, because dividends are not guaranteed. Which of the following investment choices will you recommend to this client? Don’t sweat this too much – just answer them as normal and be confident in your approach. The Series 7 Exam Subreddit is a professional community of Reddit users focused on the passing of the FINRA Series 7 Exam. All rights reserved ©2016 - 2020 Achievable, Inc. Seeks Business for the Broker-Dealer from Customers and Potential Customers, Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives, Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records, Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions, Equity securities (common and preferred stock), Investment Companies (for example: mutual funds), How to understand a customer’s financial situation, Supervisory requirements for discussions with customers, The Series 7 Top-Off exam that you take will have 135 questions, with 10 of those questions being “experimental” questions that don’t count on the final exam. Keep working through practice questions, and you’ll be well on your way to a passing Series 7 score. Choose from 262 different sets of series 7 practice exam suitability flashcards on Quizlet. Series 7 Suitability Questions. <>/ExtGState<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> The investor objective generally falls into the category of growth, income, or capital preservation. REITs are also appropriate for providing income, especially if the investor is looking for an investment that isn’t highly correlated to stock market performance. This category covers the rules and regulations of prospecting. I would sell them on my own website, Ebay or other platforms. Jane Doe, a client of yours, says to you “Please find me an investment that will generate a high return, but has no risk at all. Here is a piece originally posted for our students in September, 2012. I do not have a timeline for selling them. I don’t want to lose money.”. These meetings cover various topics because suitability is not just about profiling customers....It is very important to know the characteristics of securities and which ones to recommend. Conservative growth indicates stock in well-established, blue chip, or large-cap companies that have a strong performance history. ʧ׎X$��&�wUә�d�J“�@Ш��yܭ��'�����U�1_�U��Z��� [�:E{^6��%�p�6�a�j� I think it’s as “suitable” a read now as it was back then and I highly “recommend” it. The test will inquire on a number of items, including: Once you get someone to agree to have you manage their investments, you will need to know the protocols of establishing relationships with customers. Because money market funds are highly liquid, they are a great choice for emergency funds. She also foresees some major home repairs in the future, none of which is critical for probably 5 - 7 years. If you want to set up a meeting, you can send a note to am not great at Reddit. Don’t worry – while this exam is a step up in difficulty, you can easily tackle it by building on what you’ve learned so far. Sorry I know that I sound desperate...But I saw your sample questions and believe this will help me a lot on my second time around. 1) Your customer, age 40, is asking your advice on investment options for her recent bonus. This section covers that topic and what rules and regulations need to be followed. If you’re preparing for the Series 7, you might think these are some of the most difficult questions, but with practice and the right approach, they become manageable. Examining the different types of questions on the exam and how to answer them is a smart way to achieve your goal of passing the Series 7. A best practice is to read the question all the way through, read all four answer choices, and then read the question one more time. Finally, if the investor wants to maximize income but has high risk tolerance, a high-yield bond fund may work well. Transparency is key and customers must fully understand the situations they’re in and how to navigate them. It’s safe to say that you will not pass the Series 7 Top-Off unless you have a firm grasp of the concepts in this category. She currently teaches the SIE, Series 6, 7, 24, 50, 52, 63, 65, and 66 exams. Log in Sign up. We welcome students, current Registered Representatives and anyone who is curious. <>>> . © 2018 copyright KNOPMAN MARKS FINANCIAL TRAINING, This error message is only visible to WordPress admins, How to Ace Series 7 Suitability Questions, What to Do While Waiting for a FINRA Exam Date, New Crowdfunding Rule for Securities Sales, 60% bonds, 30% stocks, 10% money market securities. The Financial Industry Regulatory Authority (FINRA) administers the Series 7 Top-Off, which is a 135 question exam. It’s important to ensure that the investment keeps pace with inflation, so a growth objective generally aligns with a common stock recommendation. stream If income is needed over a long time frame, a bond ladder might be a good recommendation to smooth interest rate risk. Press question mark to learn the rest of the keyboard shortcuts, In total, 125 questions will count toward your final score. However, if common stock is the only choice, look for a utility stock that historically pays a high consistent dividend. This is one of the reasons why it’s so important to skip questions where you are “stuck”, which we cover more in our Test Taking Strategies post, SIE (Securities Industry Essentials) Exam. Series 7 Study Guide: Content Breakdown. Aggressive growth points toward stocks in technology companies, start-ups, small-cap companies, or companies with high price/earnings ratios. Learn series 7 practice exam suitability with free interactive flashcards. The new Series 7 top-off exam places more emphasis than ever on the concept of suitability. Income also impacts whether alternative investments may be appropriate. However, the question doesn’t always call this out clearly. I would sell them on my own website, Ebay or other platforms. rule for determining asset allocation: tax implications for retirement. It’s always a good idea for a couple in or near retirement to establish an emergency fund, which should be equal to about three to six months of living expenses. For example, a 30-year-old investor should have about 70% of his or her portfolio in equity; an 80-year-old about 20%. Do not use the browser back button while doing this test. Achievable has excellent prep courses for the FINRA Series 7 Top-Off Exam or FINRA SIE Exam – try them for free and see if they’re right for you. Knowing the full spectrum of the client’s investment portfolio holdings, financial situation, tax sta… Leave a comment How Many People Are Taking FINRA’s SIE and Top-Off Exams? This will include: Do you ever wonder what rules you must abide by while soliciting business from a customer? So I was hoping you could help me out. Looks like you're using new Reddit on an old browser. Be realistic – the goal here is to set an appropriate schedule. endobj At the moment, we have written over 250 suitability questions covering various topics. I think it’s as “suitable” a read now as it was back then and I highly “recommend” it. If you are interested, you can take a look at some samples: Currently, I have written over 350 and I am in the process of creating a file with detailed answers to the questions. 10 of the questions are considered “experimental” and do not count towards your grade. Any student who has a two hour meeting with me that covers suitability can get 150 questions for free. I just took my exam and didn’t pass first time around. Enjoy! Maybe the investor had a bad experience with a limited partnership in the past. This is one of the reasons why it’s so important to skip questions where you are “stuck”, which we cover more in our Test Taking Strategies post. Free Series 7 Sample Exam Questions. Explanation: The best choice for this customer is C, a mid-cap stock fund. A preferred stock ETF is more suitable for an income objective because of preferred stock’s fixed dividends. Equity Indexed Annuities: the industry perspective, FINRA Enforces MSRB rules on David Lerner Associates, Series 7 Exam Sample Suitability Question, Sample Suitability Question for Series 7, Annuities, Big 3: Objectives, Time Horizon, and Risk Tolerance.

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