01-25-2010, 12:19 AM
Hey, all.
Can someone give me an idea of what kind of questions are asked?
I am unsure of if I'm ready to pass the personal finance test. I'm not sure if I should spring the 30 bucks for the practice tests from Petersons (Id rather save the cash if possible). I already took the online one and scored a 33/60 after going through the IC cards and studying that info for a week, but have studied a bit more since then.
Anyway, a previous thread from "Couch Potato" listed the following as the stuff on the test. I am familiar with this stuff, but I'm not sure what kind of questions are asked. If someone can look through this and give me an idea of if this is accurate and what kind of questions are asked about the material, I'd really appreciate it!!
From Couch Potato:
I'm going to list the InstantCert folders and the question numbers that were applicable to my exam.
Foundations - 10%
11, 23, 24, 25, 26, 31, 33, 37
Credit and Debt - 15%
4, 5, 6, 26, 28, 31, 32, 33, 34, 35, 37
Major Purchases - 15%
4, 5, 8, 9, 17, 18, 22, 26, 28, 42, 47, 48, 51
Taxes - 15%
11, 12, 13, 18, 22, 23, 26, 33
Insurance - 15%
4, 9, 10, 23, 31, 36, 40
Investments - 15%
1, 9, 24, 25, 26, 27, 29, 30, 37, 38
Retirement and Estate Planning - 15%
7, 9, 11, 13, 14, 15, 17, 25, 27, 38, 39, 40, 41
Things to Know
* Thereâs almost nothing on CDs (Certificate of Deposit) in InstantCert, but there are a few questions on them
* Mutual Funds, CDs, Money Market, Savings
* Know about Credit Insurance / Credit Life Insurance
* Know what the SEC does, especially what they approve, validate, report (not in-depth)
* A little more on Medicaid, Medicare, and Medigap and their differences like who provides them
* Know what HIPAA and COBRA are, just the very basics
* Yields on Bonds
* Budget vs. Balance sheet
* Mortgage payment = PITI (Principle, Interest, Taxes, Insurance)
* Know that home equity is the difference between what you Owe and the market value of the home not how much you bought it for
* Inflation vs Recession vs Depression vs Stagnation vs Recovery
* Tax Credits vs Deductions
* What these forms are: W-4, W-2, 1040, 1040EZ
* How much Disability Insurance normally pays
* What FDIC insures
* A Will vs Trust
* What Probate is in regards to a Will
* Life Insurance, Comprehensive, Whole Life, Coinsurance
* Who gets money from Life insurance if there was no benefactor listed
* Understand what escrow is in regards to paying property taxes on home
* Very basic difference between Amended, Estimated, Reported taxes
* The benefit of Liquid Assets
* Social Security, how old do you have to be to get benefits?
* What effects credit history/score?
* 1 question on ETF (Exchange Traded Funds)
* IRA, SEP-IRA, Keogh (what's in InstantCert is enough)
Bankruptcy
* Chapter 7 (Liquidation) = straight bankruptcy, most debts eliminated, not exempt from taxes, alimony, child support
* Chapter 11 (Reorganization) = business, keep creditors at bay while a repayment plan is implemented
* Chapter 13 (Wage Earner) = alt. bankruptcy if steady income and is likely to pay off debts in 3-5 years
* Chapter 20 = combo wage/straight indv. wipes out unsecured debt and restructure secured
* Bankruptcy can remain for 10 years
* Mostly Wage Earner and similarities between personal and business bankruptcy and preventing creditors from garnishing wages
Things I did NOT have to know that were previously left as feedback:
know what "churning" means
know what intestate is
number of credits needed for social security
what is a callable bond
FV-PV-FVA-PVA tables
know the term subrogation
know how capital gains and losses affect AGI (adjust gross income)
know how to calculate after-tax yields to be able to compare taxable vs non-taxable investments and loans
old information (like old values used for gift tax maximum)
Calculating interest over time
What is the role of the Federal Reserve
Stocks
/E, EPS - don't remember anything about P/E
Don't remember anything specific about installment loans
Rule of 72 or the Rule of 78
Can someone give me an idea of what kind of questions are asked?
I am unsure of if I'm ready to pass the personal finance test. I'm not sure if I should spring the 30 bucks for the practice tests from Petersons (Id rather save the cash if possible). I already took the online one and scored a 33/60 after going through the IC cards and studying that info for a week, but have studied a bit more since then.
Anyway, a previous thread from "Couch Potato" listed the following as the stuff on the test. I am familiar with this stuff, but I'm not sure what kind of questions are asked. If someone can look through this and give me an idea of if this is accurate and what kind of questions are asked about the material, I'd really appreciate it!!
From Couch Potato:
I'm going to list the InstantCert folders and the question numbers that were applicable to my exam.
Foundations - 10%
11, 23, 24, 25, 26, 31, 33, 37
Credit and Debt - 15%
4, 5, 6, 26, 28, 31, 32, 33, 34, 35, 37
Major Purchases - 15%
4, 5, 8, 9, 17, 18, 22, 26, 28, 42, 47, 48, 51
Taxes - 15%
11, 12, 13, 18, 22, 23, 26, 33
Insurance - 15%
4, 9, 10, 23, 31, 36, 40
Investments - 15%
1, 9, 24, 25, 26, 27, 29, 30, 37, 38
Retirement and Estate Planning - 15%
7, 9, 11, 13, 14, 15, 17, 25, 27, 38, 39, 40, 41
Things to Know
* Thereâs almost nothing on CDs (Certificate of Deposit) in InstantCert, but there are a few questions on them
* Mutual Funds, CDs, Money Market, Savings
* Know about Credit Insurance / Credit Life Insurance
* Know what the SEC does, especially what they approve, validate, report (not in-depth)
* A little more on Medicaid, Medicare, and Medigap and their differences like who provides them
* Know what HIPAA and COBRA are, just the very basics
* Yields on Bonds
* Budget vs. Balance sheet
* Mortgage payment = PITI (Principle, Interest, Taxes, Insurance)
* Know that home equity is the difference between what you Owe and the market value of the home not how much you bought it for
* Inflation vs Recession vs Depression vs Stagnation vs Recovery
* Tax Credits vs Deductions
* What these forms are: W-4, W-2, 1040, 1040EZ
* How much Disability Insurance normally pays
* What FDIC insures
* A Will vs Trust
* What Probate is in regards to a Will
* Life Insurance, Comprehensive, Whole Life, Coinsurance
* Who gets money from Life insurance if there was no benefactor listed
* Understand what escrow is in regards to paying property taxes on home
* Very basic difference between Amended, Estimated, Reported taxes
* The benefit of Liquid Assets
* Social Security, how old do you have to be to get benefits?
* What effects credit history/score?
* 1 question on ETF (Exchange Traded Funds)
* IRA, SEP-IRA, Keogh (what's in InstantCert is enough)
Bankruptcy
* Chapter 7 (Liquidation) = straight bankruptcy, most debts eliminated, not exempt from taxes, alimony, child support
* Chapter 11 (Reorganization) = business, keep creditors at bay while a repayment plan is implemented
* Chapter 13 (Wage Earner) = alt. bankruptcy if steady income and is likely to pay off debts in 3-5 years
* Chapter 20 = combo wage/straight indv. wipes out unsecured debt and restructure secured
* Bankruptcy can remain for 10 years
* Mostly Wage Earner and similarities between personal and business bankruptcy and preventing creditors from garnishing wages
Things I did NOT have to know that were previously left as feedback:
know what "churning" means
know what intestate is
number of credits needed for social security
what is a callable bond
FV-PV-FVA-PVA tables
know the term subrogation
know how capital gains and losses affect AGI (adjust gross income)
know how to calculate after-tax yields to be able to compare taxable vs non-taxable investments and loans
old information (like old values used for gift tax maximum)
Calculating interest over time
What is the role of the Federal Reserve
Stocks
/E, EPS - don't remember anything about P/EDon't remember anything specific about installment loans
Rule of 72 or the Rule of 78
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