Isn’t this tax part in wealth management exact same as in L2 this year? Looks so familiar
It is, it was moved from level 2 to level 3 for 2010. Furthermore, the 2009 level 2 exam had no questions on this chapter. Get ready for some boring reading for after this one, you learn about Estate Planning.
wow…! Taxes again. Chalk that as done (and I have not even started)
crap, I took a gamble and didn’t really study that at level II, thought i was done with it.
jut111 Wrote: ------------------------------------------------------- > crap, I took a gamble and didn’t really study that > at level II, thought i was done with it. +1, I thought my calculated risk paid off handsomely. I finished the readings, but the formulas all blend together.
#1 selling t-shirt in Green Bay we’ll never forget you “BRENT”
I just got to this reading. I think I’ll skim through it this time through b/c there’s no way I’m learning those formulas again until May.
Not much to tax really. All the formulas are very similar. Anyone know if there is a more complicated way it can be tested? Maybe as a step in an essay?
I’m stuck on page 235 of CFAI book 2. At the bottom of the page, they give the calculations for accumulation of 640000 inflation adjusted dollars. I do not understand how did they get it ? Can anybody explain ? Thanks in Advance.
Yes, I am confused by it too.Under the assumtion of “Taxfree gifts”, my calculation is : Sigma(n=1~30)13,000 x [(1+0.08)/(1+0.025)]^n = 969,347.- I am also confused by the US$305,000.-/US$695,000.-/US$843,000.- on P.236. Anyone can explain ?
Taxes much easier when u read them 3d time^), EOC questions just the same and even not so boring- there’re some formulas. But IPS for institutionals is total ****. After reading them - i’m at the same point - knowing nothing.
derswap07 Wrote: ------------------------------------------------------- > I’m stuck on page 235 of CFAI book 2. At the > bottom of the page, they give the calculations for > accumulation of 640000 inflation adjusted dollars. > I do not understand how did they get it ? > > Can anybody explain ? > > Thanks in Advance. Under the assumption that the real return rate is 5.36585% [(1.08/1.025)-1] 1. $13,000.- is gifted at the end of each year for 30 years FV = $919,981.- 2. $13,000.- is gifted at the beginning each year for 30 years FV = $969,347.- I don’t know what is the $640,000.- ! Do you know how to get the US$305,000.-/US$695,000.-/US$843,000.- on P.236 ?
AMC, I did the calculations as you suggested and got the same answers. But CFAI book says something else. They got the accumulation of 640,000 at 5.365% ??? I did not get the US$305,000.-/US$695,000.-/US$843,000. on P.236 also. I do not follow the CFAI’s reasoning here at all. Am I missing something obvious here???