IAR case studies
IAR · Put your knowledge to work in context.
The Investment Adviser Representative (IAR) credential is the registration that lets an individual give investment advice on behalf of a registered investment adviser in the United States. Candidates typically reach it through one of two FINRA-administered exams: the Series 65, taken by people who are not already securities-licensed, or the Series 66, which pairs a state-law component with the Series 7 general securities licence. Passing an exam is only one step; registration also requires a sponsoring advisory firm and a filing through the appropriate regulator, usually the SEC or a state securities authority. The content is broad rather than deeply quantitative. The IAR case studies are 5 cases and about 2,625 words.
1Concentrated Bank Stock in an Inverted Yield Curve
Your client Margaret, 58, has a 2.4 million portfolio. Her employer's stock, a regional bank, is 960,000 (40% of the portfolio) with a cost basis of $310,000.
457 words, about 2 min2Municipal Bond Swap in a High-Tax Bracket
Robert and Linda, married filing jointly, have 420,000 of taxable income, placing them in the 32% federal bracket and a 6.5% state bracket. They are 67 and 65 and want income from 600,000 of cash from a maturing CD.
576 words, about 3 min3Retirement Withdrawal and Sequence Risk
James, 63, plans to retire in 12 months. His portfolio is 1.8 million: 1.26 million in a 401(k) allocated 70% equities and 30% bonds, 310,000 in a taxable brokerage account with a 95,000 unrealized gain in a single technology stock, and 230,000 in a Roth IRA.
559 words, about 3 min4Referral Fees, Testimonials, Custody, and Performance Fees
You are an IAR at a small RIA. A local estate attorney, Diane, refers clients to you.
464 words, about 2 min5Diminished Capacity and a Suspicious Wire Request
Harold, 82, has a 1.1 million advisory account. His daughter, Karen, calls and says Harold was diagnosed with early-stage dementia and she holds his durable power of attorney.
569 words, about 3 min