Retirement
- 10% additional tax on most retirement distributions before age 59½
- Indirect rollovers must be completed within 60 days
- Roth IRA qualified distributions require the 5-year rule and a qualifying event
Investments
- Beta measures systematic risk; standard deviation measures total risk
- Sharpe ratio = (return − risk-free rate) ÷ standard deviation
- Bond prices move opposite to interest rates; longer duration means more sensitivity
Tax
- Long-term capital gains require a holding period of more than one year
- The wash sale rule covers 30 days before and after a loss sale
- Inherited property generally receives a stepped-up basis
Ethics
- A CFP® professional owes a fiduciary duty when providing financial advice
- Duties of loyalty, care and following client instructions
- Disclose and manage material conflicts of interest
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