Online Investing: Evaluating Investment Alternatives - 16 CPE Credit Hours
All tax professionals need to know the tax-economics of investing for themselves and their clients. This need is accentuated by the rapid rise of the Internet as a broad-based and effective investment tool. Over 20 million investors have switched to online investment brokerages. Learn about: investing in Bull and Bear markets, direct investing, investment vehicles for maximum tax savings, risk management, investment evaluation, alternative investments and the impact of global economic factors - all this at the speed of the Internet. This course will explore the use of the Internet in company research, fundamental analysis, technical research and the use of key ratios. Whether you intend to invest yourself or just assist clients in reporting their transactions - this course is a must for the techno-accountant!
Completion Deadline & Exam: This course, including the examination, must be completed within one year of the date of purchase. In addition, unless otherwise indicated, no correct or incorrect feedback for any exam question will be provided.
Course Level: Overview. This program is appropriate for professionals at all organizational levels.
Field of Study: Taxes
Prerequisite: General understanding of federal income taxation.
Advanced Preparation: None
Learning Assignments & Objectives
As a result of studying each assignment, you should be able to meet the objectives listed below each assignment.
Online Investing: Evaluating Investment Alternatives
At the start of the course, participants should identify the following topics for study:
* Investment purposes
* Investment vehicles & entities
* Analyzing your present situation
* Asset allocation – risk & return
* Developing a financial plan
* Cash management & savings
* Asset types
* Life insurance
* Investment selection & evaluation strategies
After reading the materials participants will be able to:
1. Identify at least seven advantages of the Internet noting the depth and volume of investment and financial planning information that is available.
2. Define financial independence using the five major steps in the mapping process.
3. Recognize individual personal and financial goals as a mapping tool for financial planning by:
a. Stating differences between financial goals and purposes, and listing four major investment purposes, and naming eight retirement myths;
b. Identifying investment goals in retirement planning noting timing, careers, investment philosophies, insurance needs, risk management, and estate planning;
c. Recognizing resource allocation including necessary generational changes, identifying investment ownership and naming those who will be involved in the financial planning process; and
d. Listing the tax consequences of title holding methods by identifying nine basic ways to hold title and stating the various types of private retirement plans.
4. Define net worth using a balance sheet, show how to take an asset inventory listing assets and liabilities, and identify where changes may be made to meet financial goals.
5. State an individual’s primary responsibility for the investment planning including necessary self-education, identifying the allocation of financial resources among investments to maximize return, and recognize the economic impact of inflation, risk versus return, and basic income tax planning tactics.
6. Identify spending habits, show how to convert an operating loss into an operating surplus, and select a budget to build savings and increase discretionary income.
7. Illustrate the development and implementation of a financial plan for retirement by:
a. Identifying how to manage income to generate and inflation protect cash stating key savings elements;
b. Defining physical and financial assets naming which assets have more liquidity and stating the potential investment opportunities of real estate;
c. Listing at least six types of stocks that influence the potential earnings andnaming the pros and cons of at least five types of bonds;
d. Locating mutual funds based upon an investor’s personal objectives and risk tolerance and naming the two major types of life insurance that can be used as financial planning tools; and
e. Outlining the Social Security system identifying which payments are subject to Social Security taxes and stating the commitment needed to create a successful financial plan.
8. Name eight active strategies and two passive strategies associated with purchasing investments.
After studying the materials, answer the exam questions 1 to 80.
This course and test have been adapted from materials and information contained in the above text and any supplemental material provided. This course is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice and assumes no liability whatsoever in connection with its use. Since laws are constantly changing, and are subject to differing interpretations, we urge you to do additional research and consult appropriate experts before relying on the information contained in this course to render professional advice.