YT YouTube2Text

YouTube2Text → Transcripts → Series 66 Exam Power Hour 2026:Facts you need to know (Series 65 also)

Series 66 Exam Power Hour 2026:Facts you need to know (Series 65 also) — Transcript

by Series 7 Whisperer · 13,079 words · 1,909 segments · language en · Watch on YouTube

Open in transcriber Summarize with AI Download SRT/VTT

Full transcript

0:01Hey, this is Ken at Capital Advantage
0:03Tutoring. It's my job to get you past
0:05the series 66 exam and all the other
0:07exams. Okay, so I've done a quick and
0:09dirty. It's great. I have a series 66
0:11blitz. I have a bunch of 66 videos. I
0:13have a whole crash course for the 66.
0:16So, I'm doing a quick and duty quick and
0:17dirty and if it lasts an hour, I'll call
0:19it a power hour, but it's a 66 power
0:21hour.
0:23Quick and dirty. Okay. I'm going to do
0:25like hard-hitting stuff, just high
0:27target stuff, not worrying about, you
0:29know, in order. It may be a little
0:30disjointed, disjointed, whatever the
0:32word is. We're going to get this done.
0:34Okay. Also, there is an Easter egg in
0:36here. In here, there will be a way to
0:38access another video which will
0:40absolutely help you get through this
0:42[ __ ] I promise you, it'll be very high
0:45target, very helpful. You will thank me
0:47if you find that, but you got to watch
0:48the video to find the Easter egg. Okay,
0:50so now let's get into this [ __ ]
0:54And again, there's no real rhyme or
0:56reason how I do this. So, what's an IIA?
0:57An IIA is a firm that gives advice as
1:00business for compensation. We know that
1:01[ __ ] right? So, a lot of it hinges on
1:04whether they give advice regularly for
1:07business for compensation, right? So,
1:09like if a publisher gives advice one
1:11time but and they don't get paid for it,
1:13it's not really, you know, they're not
1:15an adviser. If a lawyer gives you advice
1:17one time or incidental, not an adviser,
1:20not an I, not that. So, that's where the
1:22plate comes in. P L A T publisher,
1:25lawyer, accountant, teacher, engineer.
1:26Okay. So now when does an IIA have to
1:29register? Well, we know when they have
1:30an office or more than more than five or
1:33six or more. Same thing. More than five
1:35and six or more retail clients means the
1:38same thing. Okay. Now,
1:40if I'm an adviser, I have to register
1:43either the SEC or state. Now, remember,
1:45never both. It's never SEC and state.
1:47Never. So, if I'm a federal covered
1:50adviser, the only thing I'll ever have
1:52to do on a state level is notice file if
1:54I have an office or more than five
1:55clients. Now, remember something. Place
1:57of business is the key word. Okay? Place
2:00of business and where you regularly
2:02meet. It doesn't have to be an office
2:03that you pay rent at. If you regularly
2:05meet someone at a hotel conference room,
2:07that's a place of business. Okay? If you
2:09regularly meet them at a Starbucks,
2:11that's a place of business. And you
2:12would have to either register if you're
2:14state or notice file if you're federal.
2:16Okay? Now let's talk about a couple
2:18things. So an IR is an individual who
2:21works is an individual who works for the
2:24IIA, right? That's the someone who works
2:27for the IIA. They give advice for
2:29compensation either managing portfolios
2:31or doing that. Now remember a CFO not
2:35managing portfolios or soliciting
2:37clients is usually excluded. That little
2:40[ __ ] like that shows up a lot. Okay? If
2:42you're a CL, if you are a CFO or a CTO
2:45or or even a partner, even if you own
2:4750% of the company and you're not giving
2:50advice or managing portfolios, you're
2:52not an IR. What's an IR? Someone who
2:54gives advice or supervising those that
2:56do. Remember that. Okay. Now, if you're
2:59giving if they say managing or
3:02soliciting to retail clients and they
3:04don't specifically say five or less, you
3:06assume that it's more than that and an
3:07IR would have to register. Now remember
3:10I register on the state only never
3:12federal. The SEC does not register
3:14individuals. So broker dealers and IAS
3:17register with the SEC or not and agents
3:19and IRS never register with the uh with
3:22the SEC because they're individuals. The
3:25SEC only does entities. Okay.
3:32Now any broker deal is a firm. They
3:34register SEC Fer and the state. It's
3:36only one that does all three. I have
3:37that video where I talk about the quick
3:39and easy registration cheat sheet. It's
3:41good. I'm not gonna I'm gonna try not to
3:43do too much overlap because I want you
3:45to go the other stuff and then come here
3:46as a supplement. I'm telling you,
3:48there's an Easter egg in here. It's
3:49going to help you a lot. Now,
3:52an agent pretty much has to register SEC
3:55FIN this I always say agents always
3:57register. That's kind of my deal. Agents
3:59always register. I'm going to go with
4:00that unless an exemption applies. even
4:03if they work for a limited partnership.
4:05The only time an agent wouldn't have to
4:06really register. Now, here's the thing.
4:08So, we know my saying no office, no
4:10retail, no office, no retail, no
4:12register for broker dealers. Well, we
4:13want to add a caveat to that for the
4:15agents, okay? It's now no office, no
4:18retail, no broker dealer, no register.
4:20So, again, if you're in the state and
4:22you only have institutional clients, if
4:25the broker dealer is registered there,
4:27you have to register. If they're not
4:28registered there, you don't. So if the
4:30broker deal is exempt, so are you
4:34because again if you have a retail
4:35client or you're doing or you have an
4:37office then broke that's actually the
4:38broker dealer's client or office. So
4:40they would have to register. Okay, so
4:43agents register pretty much all the
4:44time. The only time they wouldn't is if
4:46they work for the issuer and it's an
4:48exempt transaction and there's no
4:50compensation. Okay, now a lot of people
4:53um confuse exclude versus exempt. Okay,
4:57exclude means you don't meet the
4:59definition at all. Exclude means you're
5:02excluded. Like when I was in high
5:03school. So exclude
5:06means you don't meet the definition.
5:08You're just not it. Like a future is not
5:11exempt. It is excluded. It is not a
5:13security. A real estate is excluded from
5:16the definition because it's not a a
5:19security.
5:20Exempt means that you meet the
5:22definition but you don't have to
5:24register. So like a treasury bond, the
5:27treasury bond is a
5:30is a security but it doesn't have to
5:32register. Immunity is a security doesn't
5:34have to register. Investment company,
5:36stock exchange, all our stuff on a stock
5:38exchange. Those are securities but they
5:40don't have to register.
5:43Let's make sure we have this. Okay.
5:48Exclude means you don't meet the
5:49definition. You're not a security.
5:51Exempt means you are
5:54a security but you don't have to
5:55register. Now under that there's exempt
5:57security and exempt transaction. Exempt
5:59security means the issuer they issue
6:02exempt securities that never have to
6:04register ever. Treasuries munis you know
6:07stock exchange [ __ ] like that. Exempt
6:09transactions are for non-exempt
6:12securities. These are for securities
6:13that would normally have to register but
6:15go where you're doing it or who you're
6:17selling it to. they will allow you an
6:19exemption like unsolicited or um
6:21isolated non-issuer unsolicited
6:24non-issuer by the way um selling to
6:26institutions private placement selling
6:28to underwriters selling to your
6:30employees all kind of n like not really
6:32selling to the public that much because
6:34remember these rules were written to
6:36prevent the retail customer grandma
6:38grandpa from being ripped off by the
6:40evil broker dealer and the evil issuer
6:43and remember some of these things are
6:45absolutely things you know and they're
6:46and I've covered them a million times,
6:48but these are feedback. So, even if it's
6:50something that's simple that I know is
6:51on there and I'm getting feedback, I'm
6:53going to bring it up. Okay? So, if
6:55you're going to register as an IIA, it's
6:57either federal or state, never both. If
6:59you're over 110 million, over 110
7:02million, you're going to register with
7:04the SEC. If you're between 100 and 110,
7:07you're going to choose under 100
7:08million, your state only.
7:11Okay? Federal covered advisor. People
7:13have a problem with that, right? So
7:15understand if you're 110 or more you're
7:18federalally covered and you have to
7:19register with the SEC. If you're
7:21managing a mutual fund in anything under
7:23the investment company of 1940 you have
7:25to register with the SEC regardless of
7:27your money. Okay. If you're over a 100
7:29million in assets regularly on ongoing
7:32you're federally covered but you may not
7:34have to register but between 100 to 110
7:37you can choose state or federal. Under
7:39100 you're going to be state. However
7:42this is where people get confused. If
7:44you're anything above like say 25
7:45million, you could be considered
7:48federally covered but not have to
7:49register. They just remember federally
7:51covered just means they addressed you in
7:54the in the act of 40. So if you're
7:56giving advice in more than 15 states, 15
7:59states or more. Hold on, right? 15
8:01states or more, then you're fed covered
8:04and you're allowed to register with the
8:06SEC. If you're giving advice on an
8:08interactive website, like you're an
8:10internet advisor, you're federally
8:12covered. If you're a pension consultant,
8:15the pension is more than 200 million.
8:17That's federalally covered and you may
8:19have to register with the SEC, but you
8:21are considered federally covered. Okay?
8:23So again, federally covered doesn't
8:25always mean you're registered with the
8:26SEC. It just means they've addressed
8:28your situation like an exempt reporting
8:30advisor. As long as it's under 150,
8:32they're addressed, but they don't have
8:34to register until they go over 150
8:36million. Okay, I'll be back. Probably
8:38dressed different because I have a bunch
8:39of students right now. I'll see you
8:40later.
8:42Okay. So, the next thing is we have the
8:45private funded advisor. This is an
8:47advisor that just advises private funds.
8:50I'm kidding. It is literally a um for
8:53like hedge funds, PE firms, venture
8:54capitalists. As long as it's under 150
8:56million, they don't have to register
8:57with the SEC. The employees may or may
9:00not have to register with the state
9:01depending on the state, but they kind of
9:02are exempt. Okay. Now
9:05moving on from that, if they are over
9:09150 million, they have to register their
9:10CC unless they're advising venture
9:13capitalist. So if they do venture
9:14capitalist, they don't have to um they
9:16don't have to register no matter how
9:17much money they have. Now, here's the
9:18thing. That's an exemption. If you want
9:21to be exempt, you have to be eligible to
9:23register. What I mean by that is that if
9:25you are subject to suspension or
9:27statutory disqualification, you cannot
9:32you cannot use this exemption because
9:34you can't use it as a loophole to get
9:36around you being a shitty person. So if
9:37you're an if you are are statuto
9:39disqualified or currently suspended, you
9:41can't do the exempt reporting advisor or
9:43pull some exemption [ __ ] out of your ass
9:45because it doesn't work. You have to be
9:47eligible to register to get an
9:49exemption. Okay, now let's talk about
9:51solicitors. We know that solicitors only
9:53register in the state, not the federal
9:55level. However, they have to register
9:57pretty much register in the state. You
9:59can have an agreement with them. You can
10:00pay them cash
10:03as long as you have a written agreement
10:05saying that you can pay them cash as
10:08long as you um
10:11have a written agreement. Now, remember
10:12solicitors are finding advisor finding
10:14clients for investment advisors, not
10:16broker dealers. So, you can pay them as
10:18long as you have in a written agreement
10:19and pretty much follow the state rules,
10:21which means they'll have to register in
10:22the state. Okay? Now, let's say your
10:24client decides to go on vacation.
10:27You can still work with them, okay? If
10:29they or already your client, if you
10:32can't solicit new ones in new states,
10:34but if it is extinct, then you can
10:36remember there's a Easter egg. So, stick
10:37with my stick with my [ __ ]
10:40If someone leaves the firm, you can no
10:43longer pay them commissions unless they
10:45have a written agreement before they
10:47leave that they're going to get
10:49commissions on existing clients. They
10:51can't like say you say you're going to
10:53leave but you have mom and pop and you
10:55have their clients. So, you're going to
10:56get a piece of whatever they do with
10:57your firm. If all of a sudden their kid
10:59signs up after you leave, you don't get
11:01that. Even if it's from them and because
11:03of you, doesn't matter. You're not at
11:04the firm, you can't get paid. It's it's
11:07they do this so that people [ __ ]
11:09retire at some point. Okay. Um, also if
11:11you leave a firm, you if you're if it's
11:14a broker dealer, the agent tells the
11:16administrator, not really. They just
11:17make sure the U4 and U5 is signed. But
11:20the responsibility falls on the broker
11:21dealer you left the agent and the broker
11:24dealer you're starting with. IAS, it
11:26depends. If you work for a federal
11:27covered IIA, you're responsible for it
11:29because the federal covered IIA isn't in
11:31the state really. So they have no
11:32mechanism to report. And if it's a if
11:35you work for a state IIIA, then the IIA
11:37that tells them you left. Okay. Now, um,
11:41if you want on your advisory contract,
11:42there's a couple things that have to be
11:44in there that I'm seeing pop up. Again,
11:45I'm not covering everything. This is a
11:47supplement to the other quick and dirty,
11:49which I'll put a link somewhere, and
11:50what you're reading. Okay. So, now
11:53advisory contracts, you have to show how
11:55how you're going to calculate the fees
11:56and and all that stuff. You have to give
11:59the refund and and penalty policies if
12:02someone terminates early. And you have
12:04to say whether you have discretion.
12:05Okay? You cannot guarantee performance.
12:07That's prohibited. Okay? Now, if you
12:09have a qualified client, then you can
12:11actually adjust the fee based on
12:12performance. But it has to be in the
12:13contract as a performance based fee and
12:15the client has to be qualified. Again,
12:17advisory contract is a contract between
12:19the issu between the advisor and the
12:21investor. So, they don't care about the
12:23registrations. They care about what
12:25happens to me. So how we meth how we
12:27determine the fees the refund and
12:30penalty if it's terminated early if
12:31there is one and whether we have
12:33discretionary authority and we can't
12:35guarantee performance 100% do that.
12:37Okay. Now
12:39released 1092 just added a couple people
12:41on there right that are now have to
12:43register if you're a pension consultant
12:45a financial planner or like sports or
12:48travel agents. Now you know think of
12:49Jerry McGuire right so if they're
12:51touching the money then they have to. If
12:52you're just negotiating contracts with
12:54them and you're not touching their
12:56money, then you probably don't have to
12:57register. But just sports and travel
12:59agents, financial planners, and pension
13:01consultants now have to register.
13:04Especially remember, they're giving
13:05advice. It's regular compensated and it
13:07involves securities. If all they're
13:09doing is telling you how to sign the
13:11contract, your next contract with the
13:13Jets or whatever, why do you do that? I
13:14don't know. I'm a Jet fan. Um, but that
13:17wouldn't fall under the thing. They're
13:18giving advice on securities.
13:21Now, broker dealers, agents, IAS and IRS
13:25expire on the 31st every year as opposed
13:29to securities which are the anniversary
13:31date, right? So again, broker dealer
13:33agents, IAS and IS expires on the 31st,
13:36that's when you renew and but it's
13:38securities, it's anniversary. So if you
13:40start in March, if you get your firm in
13:43March and then the f as an IIA or broker
13:45dealer and then the following March you
13:47reregister, you're three months late.
13:49You have to so even if you start
13:50December 30th it ends a day later. Now
13:52if it's a security it goes March to
13:54March to March to March it's
13:56anniversary. Okay. Now
13:58um as a you would not have to register
14:01as an IR if you're only providing like
14:04clerical work ministerial impersonal
14:07advice. Okay. And you're not compensated
14:09on the [ __ ] Okay. So you're not an IR.
14:11Now what is an IR? I might have done it
14:13already. Is someone who gives advice or
14:16supervises those that do. Okay. Now what
14:19if you have custody? What is custody?
14:21Control of c of the assets. You have to
14:23bump up what you do. So what would the
14:25custody if you're a trustee in the
14:27account? If you have full discretion,
14:29full discretion. If you get money and
14:31don't forward a return within three
14:32days. If you accept prepaid fees of
14:36stantial prepayment of fees more than
14:39six months ahead of time, $500 for the
14:41state, 1,200 uh for the federal, that's
14:44considered custody. If you send your if
14:48you send your statements to the client
14:49instead of the broker dealer or the
14:51custodian, that's custody. Okay? All of
14:54those things are like to control their
14:55assets. I'm talking fast. I apologize.
14:57I'm trying to get as much as I can in
14:59this hour or whatever it is. Now,
15:01if you have custody, let the
15:03administrator know. Submit to submit
15:05your financials. Submit to an annual
15:07surprise audit by isolated auditor like
15:09an independent auditor. Um, put up a shy
15:12bond. The shy bond is minimum 35 grand.
15:15But if your net worth for IIA is your
15:17net cap for broken dealers is high
15:18enough over the 35 grand, they will
15:20normally wave it. Okay. What else you
15:23have to do? I think that's good on that.
15:25Let's see if there's anything else you
15:26need to add. You're going to have to
15:27deal with my add on this [ __ ] Um
15:32I think we're good. Shy bond, let the
15:34administrator know. Submit financials
15:36audit
15:38and oh, send them a quarterly statement.
15:40Tell them where their money is. Okay.
15:41Now, if material info, if I'm selling
15:44you something, these are for clients. If
15:46Oh, you know what? I'll come back to
15:47that in a minute. So, the brochure rule,
15:48the brochure rule is this. You must send
15:51the you must have the brochure or the
15:54ADV part two or the disclosure doc, same
15:56[ __ ] thing at or prior to signing the
15:58contract. That's the rule. The rule is
16:00add or prior to signing the contract.
16:01That's it. You do that, you're good.
16:03Now, the states go, "Well, that's okay.
16:05We're going to add a caveat to that."
16:07You must give it to them 48 hours before
16:09they sign the contract or they get a
16:11five-day recession where they can just
16:13free look where they can get out without
16:15penalties. Now during that time if you
16:17give them advice you can um charge them
16:20for the advice but you can't penalize.
16:22Okay. Now that's the brochure stuff.
16:24Okay. Now the exemption for getting a
16:26brochure is if it's a mutual fund as
16:28your customer or impersonal advice under
16:31500 bucks a year. And if remember also
16:34if if you charge more than 500 bucks a
16:36year in fees then you also have to send
16:39them a balance sheet no matter what. No
16:40matter what if you charge more than 500
16:42fees you have to send them a balance
16:44sheet every year. Okay. Now
16:47um
16:50that works. Now let's say I sell you a
16:54security and I omitted some material
16:56information. The client can sue for
16:58recession. It's based for damage. it's
17:01agent IIA I broker dealer a recession is
17:04basically trying to get your money back
17:05they can sue for that and say listen
17:06give me my money plus a little bit of
17:08interest plus um lawyers cost now
17:12remember the definition of an IR is
17:15someone who's who gives advice or
17:17supervises those that do or deals with
17:19clients so a CFO or a CEO unless they do
17:21that is not now if you work for a
17:24private fund do the employees need to
17:27register pretty much no because of that
17:30they don't have to unless they're unless
17:32they meet the definition of an IR. Okay.
17:35So, if you're selling limited
17:36partnerships, since it's a security,
17:38you're still an agent.
17:40If you're a broker dealer and you're on
17:42vacation, can you register? Yeah, as
17:43long as it's temporary residency, you
17:45can. Okay. We also know that state
17:48versus federal, right? When do you
17:49become a federal covered adviser? When
17:51you hit 110 or higher. Anything under
17:53110 to 100 down, you can choose.
17:56Anything under 100 is state. If you go
17:58over 110, you're federal automatically.
18:02Or if you manage mutual fund, so if you
18:04see, oh, there's a mutual fund, federal
18:06cover advisor, they throw that in as a
18:08trick. Remember, normally if you're you
18:11if you're above the 110 and you're fed
18:13covered, you will still have to notice
18:15file in any state where you have an
18:17office or more than five retail clients.
18:20Remember, and remember something. If you
18:22have no office on the IIA, BD, even one
18:25agent, even if you're a broker dealer,
18:27even one client, retail client, you have
18:29to register, right? But if you're IIA,
18:32if you have five or less retail clients
18:34and no office, you don't have to
18:35register. If you're over five, then you
18:38have to register. Okay? So, remember, if
18:40you're six or more or more than five,
18:41they're the same thing. Or if you're
18:43under six or five or less, you don't
18:45have to. Okay?
18:46um 10Ks, 10 Q's is more for um these are
18:50not for advisers, but if you're an
18:53issuer and you and the annual if you're
18:55a publicly registered in uh issuer, you
18:58do a 10K annually that's audited and a
19:0110 Q which is quarterly and it's
19:03reviewed by the auditor. Um, when you do
19:07a CTR, that's a Fininsen form 112 in
19:10case I say it. Once more than not 10
19:12grand, once there's more than 10 grand
19:15in cash goes in a firm or out of a firm
19:18for, you know, the brochure rule, you
19:19have to give it to them at or prior to
19:21signing the contract. That's the rule.
19:23But the states add on a remember that's
19:25the rule. That's your fine. If you are a
19:27state advisor, then they would like you
19:28to send it to them 48 hours before they
19:30sign the contract. And if you don't,
19:32they should get 5 days to cancel without
19:34a penalty. Now remember you as I said
19:36before you can charge them advisory fees
19:38but that's that. Okay some of the
19:40exceptions one of them is if it's a mus
19:42fund. Okay two if you're giving
19:45impersonal advice under 500 bucks a
19:48year. Okay.
19:50Um
19:54if you if an IIA sends statements to a
19:56customer directly instead of the
19:58custodian that's custody. They have to
20:00get the surprise audit. We know what a
20:02CTR is. More than 10 grand. Remember
20:04it's not about taxes, it's about
20:05detection. Okay. Um
20:09if you want to manage an account when
20:11the person be is if the through
20:13incapacitation right to a power of
20:14attorney if it ends at incapacitation or
20:18death, right? But if you wanted to go
20:20through the incapacitation or coma, it
20:22has to be durable. Now remember, even a
20:25spouse that comes in and goes, "Oh, I
20:27you know, I don't have power of
20:28attorney, but my wife, my husband's in a
20:29coma." Doesn't matter. You can't do
20:31[ __ ] Now, one other thing I'm going to
20:33throw in there that keeps popping up.
20:34There's a thing called springing power
20:36of attorney. Springing power of
20:38attorney. Okay, springing power of
20:40attorney
20:42is what's the best way to explain it?
20:44Springing power of attorney is where it
20:47become goes into effect when
20:50when you become incapacitated. So, you
20:52have no control until you have intel
20:55capacitation and then it goes into
20:56effect. It's kind of protecting you
20:58there. Okay. Churning. This is literally
21:01doing repeated trades for commission not
21:03for the benefit excessive trading and
21:05remember it first of all on the IIA it
21:07violates a fiduciary duty and a broker
21:09dealer it's an ethical breach and it
21:10violates suitability plus they do not
21:14look at what's the best way to do it
21:16they do not look at gain or loss they do
21:20not look at gain or loss to determine if
21:22it's churning or not you could make
21:23money and be churning and you lose money
21:24and not be turnurning okay succession
21:27plans right so that's you the plans when
21:29an IIA a plan to retire, dies or loses
21:31capacity, you really do need to have
21:33one. And basically, the whole point is
21:35that it meets regulatory compliance and
21:38it ensures client continuity. So, the
21:39clients are go, "Wait, what am I doing
21:41there?" Okay. Um, if you're if you're
21:44splitting commissions with agents of the
21:46same broker dealer, you do not need
21:48consent. Now, remember, they have to be
21:50the same broker dealer or affiliated and
21:52equally registered, meaning that they
21:54are you're you're registered in the same
21:57states as a client. Okay? Again, we're
21:58jumping around all over the place, baby.
22:00Okay. Market manipulation. Pump and
22:02dump. That's where you talk about it.
22:04Get it up and then you dump this [ __ ]
22:05That's like um Jordan Belelffort.
22:07Painting the tape, wash sales. No.
22:10Painting the tape, wash trades. That's
22:12where you put um that's where you put
22:14trades on without trying to change
22:16ownership. You're just trying to
22:17increase volume to make it look better.
22:19You're trying to create false volume and
22:20price movement. Okay. So, you know that
22:23there's going to be customer. I keep
22:25saying this. There's going to be joint
22:26account stuff in this. I promise you
22:28that it'll be there. So, let's talk
22:29about a couple of them. We have joint
22:31with rights or survivorship. That means
22:33both. It doesn't have to be married. If
22:35the person dies, the other person gets
22:37the money. Even if it's three or four
22:39people, avoids probate. Boom. Tenants in
22:42common. Each owner has a defined share.
22:44It goes to your heirs, not the surviving
22:46person. But it's an both of them are
22:48undivided accounts. Anyone can place
22:50orders. Any checks have to be written to
22:52both people. But if you die in a tenants
22:54in common, your money goes to your
22:55estate, your heirs, your beneficiaries,
22:57or just goes to probate. That's kind of
22:59what you have to think about, right? Um,
23:02moving on. Transfer on death. It's for
23:04individual accounts mostly. It can be a
23:06joint. And it basically avoids probate
23:08because it says, "Hey, when we die, this
23:10money, this account, all the stuff in
23:11this account goes to this person. It
23:14avoids probate and it supersedes the
23:16will." Remember that. Now,
23:19a
23:20what's another one to go? Oh, T tenants
23:23in entirety. Tenants for the benefits of
23:25I think it's a TBE account that's for
23:27married couples only. And the whole
23:29point is that it protects it's for
23:31property. If you're property and you're
23:32a married couple, you have an an
23:34entirety account that you can't it
23:36protects that property because if I get
23:38sued because I did something stupid,
23:39they can't touch that property unless
23:41both of us are creditors. Okay, moving
23:44on. Um, a living will is not about
23:46assets about it's about medical
23:48directives when you're incapacitated,
23:50whatever. Okay. So now like kill me
23:52don't kill me whatever it is. Um per
23:55sturppies passes to remember. So perpies
23:59is by the branch. It goes to all all the
24:02heirs ch the heirs and the children
24:04everyone alive it goes to the branch.
24:06Three kids one dies it still goes to
24:07their family. Per capita it's equally
24:10among the living people. Okay. Now um
24:13customer identification program you
24:15verify before and or during the account
24:18opening. You need name, address, date of
24:20birth. social security number. That's
24:22part of My chair is [ __ ] squeaking
24:23like hell. That is part of like NL
24:26program
24:35[Music]
24:44again. Random [ __ ] Okay. Cost bases.
24:46Remember cost bases what you pay if you
24:49die. I say I buy stock at 20 and I die
24:51when it's at 30. Whoever gets it gets it
24:53at 30, not 20. They get the stepped up
24:55cost basis. Annuities do not step up
24:58cost basis. Um, again, random [ __ ]
25:01because it's high target [ __ ] that's
25:02popping up. Okay. Now, if I buy stock at
25:0620 and then I give it to you when it's
25:0830, you're going to get my original cost
25:10basis of 20. So, if you sell it at 30
25:1235, you're going to pay taxes from when
25:14I bought it. And it's long or short
25:16depending on from when I bought it. If I
25:19die, it's automatically long-term. I'll
25:20do that. So on if I buy stock at 20 and
25:25it goes to 30 and I die and you inherit
25:26it, you get it at 30 and it's
25:28automatically long-term. If I buy stock
25:30at 20, it goes to 30 and I give it to
25:32you. I haven't died yet. You're getting
25:33it at 20 and it's long or short
25:35depending on how long from my data
25:37buying it. Okay? That your cost basis
25:40will stay where I bought. Okay. Um CAPM
25:42is a risk adjusted return. If you need
25:44to do the math, it's the beta whatever
25:47the market is. If they give you
25:48risk-free rate of return right wherever
25:50the market is, subtract the risk-free
25:51rate, multiply times beta, and then add
25:53the risk-free rate back in. It's beta.
25:55CAPM is the beta formula. Okay? It's
25:58market return times beta. If you have to
26:00take out the risk-free rate, take it out
26:02first, multiply, and then add it back
26:04in. Alpha is what you do better or worse
26:06than that. Okay? So, if you have a
26:08positive alpha, you do better than that
26:10return. If you do have negative alpha,
26:12you do worse than that return. Okay?
26:14Strategic. Okay. Strategic is strategic
26:18versus passive. It's sort of the same
26:19thing. Strategic is long-term. I'm not
26:22going to touch that one. Okay, just
26:23remember strategic is more passive. It's
26:26like you're thinking big picture.
26:28Tactical is you're trying to move [ __ ]
26:30around. Okay, so you can even have a
26:31portfolio that has a strategic
26:33portfolio, but it's tactical to move
26:35stuff around. Okay, good stuff. Okay,
26:38don't care. Don't care. Don't care.
26:40Don't care.
26:45Okay,
26:48efficient frontier. You don't have to
26:49know the math, but it's a concept. The
26:53concept is the efficient frontier means
26:55you're getting the efficient frontier is
26:56like the right amount of reward and
26:58risk. Like you're it's under modern
27:00portfolio theory that you're trying to
27:01stay you're trying to increase the
27:03return without increasing the risk. So
27:05if you move ahead of the frontier,
27:06you're doing better. You're earning more
27:08than the risk would would go. And if
27:10you're behind it, you're kind of
27:11inefficient. Okay,
27:14div discount cash flow DCF is to find
27:17present value. You might have to do the
27:19math. Find my time value mini money
27:21video. Discounted cash flows for bonds
27:23and projects. Dividend discount model is
27:26the method to find present value for
27:28stock. Now, dividend discount model is
27:30more for preferred. Dividend growth
27:31model is for stocks that pay dividends.
27:33If a stock doesn't pay dividends, you
27:35can't really do it. Okay. So, again, DCF
27:37is for bonds and projects to find
27:39present value, which is fair market
27:40value.
27:42Um, DDM is for preferred stock for the
27:44most part because it's dividend and
27:46dividend growth model is more for growth
27:47stocks. I mean for stocks that pay
27:49dividends where the dividend may go up
27:50or down. Okay. Duration is volatility,
27:53right? Long-term bonds have dur long
27:55duration. Short-term bonds have short
27:57duration. But also low coupon bonds have
28:00long duration. High coupon bonds have
28:02short duration. Duration is volatility.
28:04Okay? Now you know how to do current
28:06yield amp annual over market price. You
28:09should [ __ ] know that by now. annual
28:10over market price. That's that. Um,
28:13don't forget I got an Easter egg coming.
28:15Pay attention and deal with this [ __ ]
28:16rambling chaotic [ __ ] that will
28:18absolutely give you points on the test.
28:20Um, the Easter egg will be coming soon.
28:23I promise you it's worth it. I promise
28:25you it's worth it. Okay. Now,
28:31current yield is annual of a market
28:32price. If you have a discount bond, it
28:34goes coupon, then current, then yield to
28:36maturity, then yield to call. Okay? If
28:38you have a premium bond, it's the other
28:39way around. Coupon current yields to
28:42maturity yields are called. It's much
28:43more about the concept than the math. So
28:46if they say, oh, you're if you have a
28:47discount bond and the current yield is
28:49that if they say what's to maturity, it
28:51has to be above that. Okay, if it's a
28:52premium has to be below. Okay, you need
28:54to know that tips, you may have to do
28:56the math. I have a a a video on this, I
28:58think in the burning math. Um, tips,
29:01remember, it's going to adjust the par
29:03for inflation. So if you have a $1,000
29:06bond and inflation is 4% you're going to
29:08increase the par value by 4%,040
29:11whatever the coupon is it is out of
29:13that. Okay? So the coupon is out of the
29:16new number. So if you buy $1,000 5% bond
29:19and inflation is 4%. Your new par value
29:22is 4,040
29:23and you're going to get 5% of,040. Okay
29:26that's tips. Remember they fight
29:27inflation. Total return is your growth
29:30plus income right? So you take So
29:33basically if you buy something at 95
29:35it's not worth the hundred bucks and you
29:36get a $3 dividend that's $5 because of
29:39growth plus the $3 dividend. I have
29:41questions on that. Um $8 divided by 9 is
29:43like 8.4%. So again total return is your
29:47growth plus your income divided by the
29:50original. Now if you ever see anything
29:53about ESG it's um environmental social
29:56governance whatever it is. This is like
29:58a client's avoid a client avoids a
30:00tobacco stock due to personal reasons.
30:02That's non-financial valuebased
30:04restriction. That's a non-financial
30:06base. That's like, oh, I don't like
30:07them. I want you to not invest in
30:09tobacco. So, almost like um you wouldn't
30:12have a far-left liberal invest in
30:13Monsanto and you wouldn't have a
30:15far-right person invest in stem cell
30:17research. It's just not a thing. Okay.
30:20Now, um retirement plans, remember 457
30:23plans are non-qualified. They're for
30:25like firefighters, cops, state workers.
30:27If you remember, here's the big thing.
30:29Since it's non-qualified, they can take
30:31it out earlier. Okay? They can take they
30:33don't have a 10% early withdrawal
30:35because firefighters may retire at 45 or
30:3750 and they want to be able to touch
30:39that money. So, they can take it out
30:40before 59 and a half without a penalty.
30:42It's for state and local government
30:44workers and for the higher end people
30:45like hospital workers, fire, uh, police,
30:48stuff like that, not teachers. If you
30:51have an IRA, you pay a penalty if you
30:53take it out.
30:55Unless it's for so for a qualified
30:57reason. You're 59 and a half for
30:59education. First, not primary home,
31:02firsttime home buyer, medical like uh
31:04disability, [ __ ] like that. Okay,
31:06remember it's not for your primary home.
31:07It's for your first-time home buyer. You
31:09don't pay the penalty. Um usually with
31:11the Roth, you have to hold it in there
31:12for five years to have and take it out
31:14without taxes. Okay.
31:17Um fundamental is the no fun, right? No
31:20fun.
31:22Okay. no fund that you're looking at
31:25balance sheets, income statements,
31:27financial ratios, earnings per share, PE
31:29ratio, industry trends, all the stuff
31:32about the company. Technical analysis is
31:34looking at the trading. Think technical
31:36for trading. That's like overbought,
31:38oversold,
31:40um, resistance, support, a trading
31:43momentum, [ __ ] like nothing to do with
31:44the actual company. Again, CAPM measures
31:47return based on the risk premium times
31:50um, I guess it's risk-free rate. Don't
31:52worry about that. So it's going to be
31:53you take the risk premium which is the
31:55market return minus risk-free rate times
31:58beta and then you add it back in. Okay.
32:00Efficient market theory the weak
32:02reflects as all the past data is built
32:04in and fundamental may you work semi-
32:07strong all public information is built
32:09in but private is not strong all
32:12information including inside information
32:14is built into the price. So they all
32:16kind of believe in buy and hold
32:17especially semi- strong and strong but
32:19weak does believe that maybe if you do
32:21fundamental you might be able to get
32:23into it but remember weak reflects all
32:25the past data is already in there
32:28annualize return okay holding period
32:31return is basically so holding period
32:34return is like total return and then you
32:37annualize it so let's say you earn 5%
32:40over four months well four months
32:42happens three times in a year so you're
32:44going to do that returns Say it's 5%
32:45over four months. You're going to
32:46multiply that times three to get
32:48annualized at 15. If you earn 5% over 6
32:51months, 6 months happens twice. So
32:53you're going to double it. So now it's
32:5410%. Okay. If you earn money over a
32:57year, if your money is if you're if you
32:59do a total run for two years, annualiz
33:02is bringing it down to a year. So you
33:03cut it in half. Okay. Um if you want to
33:07add leverage, you're going to use margin
33:08or leverage ETFs. Remember, it may not
33:11be suitable because it increases risk.
33:13You do not get, remember something, you
33:16do not get um leverage without risk.
33:20Anytime you have more leverage, either
33:21margin or leverage ETFs, you are
33:23increasing your risk. Okay.
33:34Okay. Hey, if you have a promoter or
33:36solicitor, if you pay them over $1,000
33:39in 12 months, you must have a written
33:41agreement with and disclosures. Okay?
33:43You have to have a written agreement and
33:44disclosures. They used to need client
33:46consent. No, they don't. You just have
33:47to disclose all the conflicts of
33:49interest. If you have an advisory
33:50contract, it must include the fee
33:52structure. If there's discretion, a
33:55disclosure, the refund policy, and no
33:57performance guarantees. Okay. Now, um,
34:02an IIA can have oral discretion. He has
34:05an oral for 10 days. How happy is he or
34:07she? Okay, so the point is an IIA can
34:10have discretion orally. God, that sounds
34:12so bad. For up to 10 days and then at
34:14the end of 10 days to continue and you
34:15need it in writing. Broker deals and
34:17agent have to have it upfront in hand.
34:19Okay. Now, um,
34:23again, back to this. It goes back to
34:25this. So, I have a lot of stuff
34:26repeating, right? So durable power of
34:28attorney goes through incapacitation. If
34:30someone's in a coma incapacitation and
34:32they come to you and say, "Hey, I want
34:33to they want to do trades." Not unless I
34:36get unless I had durable power of
34:37attorney. If I had regular power of
34:38attorney, it's gone. Okay. Now, ADV part
34:42two, the brochure has to be updated
34:43every year annual updating amendment and
34:45any material changes promptly. Whatever
34:48the [ __ ] that means promptly. Okay. Soft
34:50dollar. It's good for research,
34:52software, and seminars. office furniture
34:55or not. Salary, no, stuff like that.
34:57Okay. Um,
35:00you remember the elder stuff like you
35:02got to make sure that you know that you
35:04have to look for red flags like if they
35:06come in and they want to withdraw their
35:08money when they didn't do it before, if
35:09they look if they say my my my caretaker
35:14um is going to help me invest, stuff
35:15like that. And if you think something's
35:17wrong, first you do you can do 15-day
35:20hold, then a 10-day hold, then up to 30.
35:22So, a total of 55 days. If you think
35:24they're actually being uh abused, you
35:26have to call the I think it's a senior
35:28care hotl long or something like that.
35:29Okay. Remember front running is always a
35:31violation. It's never not a violation.
35:33Okay.
35:35No, insider trading being in possession
35:37of insider trading is not the crime.
35:41Acting on it is either and remember it's
35:43like treble damage is like uh it's three
35:46three times three times gains or any
35:49loss you avoid. Okay.
35:52Um, we talked about efficient market
35:53theory, modern portfolio theory. Okay,
35:55got it. Okay, top down analysis. So, top
35:57down versus bottom up. Top down analysis
36:00is when you look at the economy, then
36:03the sector, then the industry, and then
36:04the stock. You're using the economy to
36:06make decisions. Top down. Bottom up is
36:08you look at the stock, see the industry,
36:10the sector, the economy to make your
36:11decisions. Okay. Correlation.
36:14Correlation. Oh,
36:17yeah. Correlation is if it's between one
36:19and negative one, right? one all the way
36:21down to negative one. One means they
36:23move the two things correlated. They
36:25move in lock step. Zero means they have
36:26nothing to do with each other. That's
36:28real diversification. Negative one, they
36:30move opposite. That's not
36:31diversification because if one goes up
36:3310, the other goes down 10, you're not
36:34how do you make money because they're
36:35offsetting each other. Okay. Uh so
36:38again, correlation, you want like zero
36:40to maybe a little bit of negative, but
36:42you don't want correlation because
36:43that's diversification. Because if they
36:45move together, you're not you're not
36:46diversifying. Um,
36:49always remember strategic is more of a
36:50long-term target mix. Tactical is
36:53short-term moving with the markets etc.
36:55Rotation engine. Okay. Um, if you do a
36:58trade and you don't mention a method,
37:00it's you have the IRS will automatically
37:03base the cost basis on FIFO. You can do
37:05a share share identification. If you
37:08have a non-qualified retirement account,
37:10usually like an annuity, when you take
37:12the money out to do LIFO, which means
37:14the growth comes out first. Oh, my eye
37:16is going to blow up. There we go. Okay.
37:21If if the exam doesn't specify which
37:23shares are sold, assume FIFO. Okay.
37:26Again, ESG, I don't want to buy tobacco
37:28company. Remember, ESG considerations
37:30are not tied to performance. They're but
37:33the investor's personal beliefs. Okay.
37:36IRA premature e no distribution. I'm not
37:38going to say that other thing. Qualified
37:39exceptions are firsttime home buyer,
37:42qualified education, disability death,
37:45substantially equal payments, that's
37:46like like annuitizing it, medical
37:49expenses over seven and a half, and
37:51health insurance if you're unemployed.
37:53Okay. Now,
37:55we talked about firefighters or now if
37:57you have retirement plan, you need an
37:59IPS. Not IBS like you got to poop all
38:01the time. Um, IPS, investment policy
38:04statement. It's a written document
38:06outlining the objectives, the time
38:08horizon, risk tolerance, and asset
38:10allocation. So basically, you personally
38:12can have your own investment policy
38:14statement saying what you want to do.
38:15But all qualified retirement accounts
38:17have to have this an IPS, which is
38:19objectives, time, horizon, risk,
38:21tolerance, and asset. It's in writing.
38:22And any kind of plan, a riska plan has
38:25to whoever manages it has to follow the
38:27prudent investor rules. Remember,
38:29there's no there's when you're managing
38:31an account and you have a trustee or
38:32you're a fiduciary, it's not always so
38:35much that you have to get the safest
38:37thing. You have to do a trade. So, you
38:39can put crypto or NFTs, don't put in
38:42there, but you can put digital assets in
38:43it or futures in account if you think
38:46it's worth it. Now, let me explain
38:48something to you. My my little Easter
38:50egg here, okay, that you had to suffer
38:51through to listen to. Let's say it once.
38:53I have basically a hundred probably 150
38:58questions that are very very similar to
39:00the 66. They're going to be at the end
39:02of this video, but what I'm going to do
39:03is I'm going to have like a five minute
39:05gap from when I start talking. Maybe
39:07I'll pay music or something until the
39:09thing starts. So, all you have to do is
39:11wait till the end and then listen. Wait,
39:14go through the five minutes and then
39:15boom, you have 100 over 150 questions
39:18that really have a very very high chance
39:21of being very close. I'll say that as
39:23being on the test. I'm not saying that
39:24word for word. I say they're going to
39:25give you the same vibe. It's going to be
39:27it's like my series 7 brutal exam but
39:29for the 66 and I'll mention that again
39:31later in case you miss it.
39:34Behavioral and risk concepts. Okay.
39:36Political risk instability due to
39:39elections, coups, nationalization of of
39:41like oil rigs and [ __ ] like that. Um
39:43duration is sensitivity of bond prices
39:46to interest rate. That is interest rate
39:47risk. Longer duration is more interest
39:49rate risk. Okay. 529 versus covered 529s
39:54state higher contribution limits, no
39:56income limits, no age limits. Um, but it
39:59could you can use soon it'll be for
40:01everything, but right now you can use it
40:03for any any college education and up to
40:0610 grand for primary. That's going to
40:07change next year, but whatever it is. No
40:09income limits. The contribution limits
40:11are very high. The only problem is you
40:13can't invest in specific securities. You
40:15do like funds and portfolios. Coverdale
40:18is run by the federal government. So, by
40:20the way, 5 trillion9 is covered by the
40:21MSRB. It's considered an immunity fund.
40:24Coverdale is run by the federal
40:26government. So, it does a lot of stupid
40:27rules. Income limits, contribution
40:30limits of two grand a year. Age limits,
40:32once a kid turns 18, you can't you can't
40:34put money in anymore. They have to use
40:35it by the time they're 30, but you can
40:38um but you can pick specific securities.
40:41That's great. That's the differences.
40:43Now the same both of them. The money
40:45goes in after tax which you mean to pay
40:46tax on it. Post tax it grows tax
40:49deferred and when you take it out it
40:51comes out taxfree if you use it for
40:52education. Remember Coverdale for any
40:55level of education. 529 is only for
40:58really college and up to 10 grand for
41:00sub college.
41:02Okay. You have to know present value
41:04future value discounted periods. Right?
41:05Don't worry about the math so much. But
41:07present value is what we have to invest
41:09now to get to a future value. Future
41:12value is what an investment now will be
41:13worth in the future. Discount I
41:15discounted cash flow is the method to
41:17find present value. So look, if I think
41:20I'm earning 5% on my thing on my return
41:22and I have my $1,000 I'm and say it's
41:25for five years and I'm earning 5%. I'll
41:27do a,000 times 1.05 then that number
41:30times 1.05 that times I want to keep
41:33doing that for five years. If I'm if I
41:35get future value and I want to find the
41:37present value, I divide by 1.05. If it's
41:408% 1.08. If it's 9% 1.09. Okay. I have
41:44find my time value of mini video. So if
41:46I get a future value and I go what's it
41:48going to be worth today? Say I have a
41:49future value in 3 years and what's the
41:52fair value? What's the present value
41:53today? I'm going to take a,000 divided
41:55by 1.0 whatever the inflation whatever
41:58the rate is and bring it back. That rate
42:00of return is called internal rate of
42:02return. If the market price is below
42:05their present value, it's a positive NPV
42:07and worth investing. If the market price
42:09is higher than the present value, it's a
42:11negative MP and not worth investing in.
42:16A nom remember nominal is coupon.
42:19Real rate of return is minus inflation.
42:23Hold in period and total return are the
42:24same thing. It's growth plus income
42:26divided by original. Annualized is
42:28you're taking whatever the return is and
42:30either stretching it to a year or
42:32shortening it to a year. That's
42:33annualized. What it be if it was by the
42:34year? after tax return, you take the
42:37return, multiply it times the a by the
42:40100 minus the tax bracket. If you earn
42:43800 bucks and um and then you're in the
42:4720% tax bracket, you do 800 times 80%
42:50100us 20 that's going to give you 6 $640
42:54and that could be the number or you
42:55divide that by the original. So again,
42:58you put a,000, you put 10 grand in, you
43:00make 800 bucks, you're in the um
43:05let's say it's you're in the 20% tax
43:07bracket, you times 800 * 80. I think
43:10that gives you I don't know. I'm saying
43:12it's 64, but I don't know. I'll do it.
43:16800 *
43:19800 *8. Yeah. So that's $640. And you
43:23divide that by the 10 grand, that's
43:256.4%. Okay. A tax equivalent, you take
43:28the return and you divide it by 100
43:30minus the tax bracket. Okay. Duration,
43:33you won't have to do the math. Just know
43:34it's volatility. Current yield, you will
43:36have to [ __ ] know.
43:38It's assets amp. Amps. Currents have
43:41amps. AM annual market price. Credit
43:44spread. Just understand that the credit
43:45spread is the difference between
43:47treasuries, which is safe, risk-f free
43:49kind of, and corporates. They measure
43:51that yield. If it's getting narrower
43:53between the corporates and the and the
43:55treasuries, the the yield getting
43:56narrower, that's a sign of a good
43:58economy. If it's widening, remember,
44:01widening equals weakening. So, if the
44:03spread's getting wider, it's a
44:04weakening, not a weird economy, a
44:06weakening economy. Um, normal means that
44:09the lower yields are higher than the
44:10long longer yields, right? So, normal
44:13yield curve means I don't know if I'm
44:14going the right way. Normal yield curve
44:16means that the lower the shorter term
44:18are lower yields and the higher the
44:20longer ones are higher yields. Inverted
44:22means the short is higher which is not
44:24normal and the long-term is lower.
44:26That's usually sign of a recession
44:28coming in. Okay. Duration again longer
44:30maturity higher duration. Lower coupon
44:32higher duration. Current ratio is
44:35current assets minus current
44:36liabilities. Quick ratio is current
44:39assets minus inventory over current
44:41liabilities. Now, income statement is
44:43revenues and expenses. Balance sheet is
44:45assets and liabilities. That's really
44:47what it is. Mean, median, and mode.
44:49Okay, mean is the average. Median is the
44:52middle. Mode is what shows up the most.
44:55Um, I think that works. We've done the
44:58accounts.
45:03And don't forget, everything's going to
45:04be kind of like out there and all over
45:06the place because I'm just giving you
45:07feedback from what people are seeing,
45:09not questions, but like ideas of what to
45:11work on. So not it's not always going to
45:13be like, oh, it's this and this and
45:14this. It jumps around a little bit. So
45:16remember, if you hear anything about a
45:17forward rate, basically they're asking
45:19about the implied future rate if you
45:21look at a yield curve. So if you see
45:23that the yield is normal, that means the
45:26low rates are the short rates are lower,
45:28the long rates are higher. That's
45:29normal. That means eventually it's
45:31probably going to go the other way where
45:32eventually the shorter rates will go up
45:34and that usually mean the Fed is going
45:35to start raising rates and then if you
45:37see an inverted yield curve that means
45:39Fed is going to start lowering rates.
45:42Okay, back to this real quick. Joint
45:44tenants versus joint tenants rights to
45:46survivorship money goes to the other
45:48person in the account. Tenants in common
45:50goes to the estate, the heirs, the
45:51beneficiaries to probate. TOD is best
45:54for individuals. that goes to an a
45:56beneficiary, supersedes the will and
45:58does not go through probate. Now,
46:01different kinds of things. Sole prop is
46:02a single person, one person. If you see
46:05the word two people, that's really two
46:07words. If you see more than one person,
46:08it can't be a sole prop. Soul prop
46:10offers no protection. Okay? But it's
46:13easy and cheap to set up. Sound like my
46:15some of my old girlfriends. Totally
46:17kidding. Don't cancel me for that [ __ ]
46:18Okay. Um don't I got dates with them
46:20because they were easy. Now again LLC
46:25multiple one person or multiple people
46:27you get limited you get limited
46:29liability not a lot you don't you get a
46:30lot of protection um and the money
46:32passes through gains and losses
46:34partnership is the same thing but
46:36remember something if they say
46:37partnership they mean general
46:39partnership they will absolutely say
46:42limited partnership if they mean limited
46:44and why that matters a general
46:46partnership means they're all general
46:48partners even those who are partnership
46:50which means they all have unlimited
46:51liability. If they say limited
46:53partnership, the limited partners have
46:55limited liability. The general partners
46:56have general liability unlimited. And
46:58remember, they all get passed through
47:01gains and losses. An S Corp, that's a
47:03max of 100 shareholders, passive gains
47:06and losses, which means you get write
47:07offs, max of 100 shares. Okay? Um they
47:10have to be US residents and non and
47:14individuals. It can't be corporations or
47:15foreign residents cuz then the if they
47:17do that, if they have anyone done a
47:19non-resident or a corporation, then it
47:22has to be taxed like a C corp, which
47:23means CC corp means that it's the best
47:25way to raise a lot of money. very
47:27expensive but it's the best way to go
47:29big but it is going to be double tax
47:31because the actual corporations the
47:33first of it of all the things we talked
47:35about in the last 30 seconds which I
47:37swear is a long time C corps are taxed
47:41as an entity and then they pass through
47:44in the term of dividends and then you
47:45pay tax on that also so keep that in
47:47mind okay now um trust revocable versus
47:52irrevocable okay revocable
47:56means means that the granter sets it up.
47:58It's still part of his estate. So if he
47:59dies, she dies. It's part of their
48:01taxable estate. But they can take the
48:02money back and change all the [ __ ] as it
48:04goes on. Usually a living one. Usually
48:06intervivos where you do it there. Now,
48:10but I if I did a trust, I would make it
48:11irrevocable because I don't want that on
48:13me. Irrevocable means once it's in
48:15there, it can't be touched. Ugma,
48:17they're not trust, but that's
48:18irrevocable. Once the money's in there,
48:20it's it's the trust of the kids, not
48:22yours anymore. You lose it. But again,
48:24when you die, it's not part of your
48:25estate. Revocable means you can change
48:27it. Irevocable, you can't. Now,
48:29remember, a living will is does not
48:32avoid probate. A living will is
48:34literally for your um medical stuff like
48:38do I want to unplug unplug it or not?
48:40Okay.
48:44If you want, you do the trust for you
48:46want privacy. So, if a client want to
48:48leave something to the boyfriend or
48:50girlfriend discreetly, you set up a
48:52trust.
48:57Okay, here's some one hitters. Kind of
48:58doing it anyway. 457. Let me know that
49:01best for government employees,
49:02firefighters, police, no early
49:04termination. IRA penalties. We already
49:06went through the We went through the
49:07exceptions for if you pull the money out
49:09of an IRA early. We went through those
49:11that list already. RMD, you know, it's
49:12the April 1st after you turn 73. If you
49:15want to do ORISA 404C, that's where you
49:18the the administrator of the or the
49:21sponsor for the retirement account,
49:23okay, can't be sued if they give them
49:27the ability to at least three different
49:28choices of risk rate risk for
49:30investments, the ability to choose
49:33change every court at least quarterly
49:35like adjuster [ __ ] and education. They
49:37give those three things then they then
49:40they can't be sued if the [ __ ] goes bad.
49:42making having them buy your own the
49:45company stock is not part of it. Okay,
49:47remember if someone dies they step up
49:48the cost basis if it's a gift it's
49:51called carryover which stays the same.
49:53Um
49:57every remember remember remember
49:59something everything happens in December
50:01to broker dealers IAS IS agents their
50:04thing ends on December 31st remember
50:06that so if they try to if they say if
50:09they start in April and then they
50:11reregister in April they just spent four
50:13months unregistered which is because
50:15even if you start December 2nd it ends
50:17on December 31st. Even if you just start
50:19December 30th it ends on December 32nd.
50:22Okay. Now mutual again one hitters
50:24mutual fund will the redemption of a
50:27mutual fund or moving from one fund to
50:29another again it the whole point here is
50:31that if you have a mutual fund and you
50:33move from one fund inside the family to
50:35another one or you redeem your mutual
50:37fund shares that is taxable if you sold
50:40it for more than your cost basis. Right?
50:42So if you buy into the large Fidelity
50:44large cap and you move into the Fidelity
50:46Midcap, if you move it, yeah, you won't
50:48pay a sales charge. That's the exchange
50:50privilege, but you may have to pay taxes
50:53if you redeemed it for more than you
50:54paid for, more than your cost basis.
50:56Good.
50:58Okay. Spaxs. What I have videos on
51:01what's a spa? It's like a blind pool,
51:03but it's not exactly a blind pool. You
51:04put the money in. Okay. AL It's
51:07basically you put the money in and
51:08they're going to find a takeover target
51:10within two years. The money is held in a
51:12trust. I have videos on this. The money
51:14is held in a trust. If you don't get the
51:16money back, if they don't find a person,
51:20a firm to take over and being public,
51:22usually a reverse merger kind of thing,
51:24then they or some version of that. Um,
51:28then they you get your money back.
51:32Okay. The problem with that is it could
51:34be two years where the market went up a
51:35lot. See these things going up, you're
51:37missing out on that. So, you have you
51:38actually have opportunity cost risk.
51:40Okay. Now, what else can we talk about?
51:42Okay,
51:45you got to know about ETN, ETFs, UTS,
51:47read them up. Remember, ETN is
51:48considered debt. ETF is not debt. It's
51:52equity. Remember, so the risk that an
51:53ETN has is default risk that an ETF does
51:56not have default risk. They both track
51:58an index. They both trade on exchange.
52:00They're both pretty liquid. None of them
52:01really pay to the end. So, ETFs are tax
52:04efficient. ETNs are debt. Again, an ETN
52:06is I lend you money. 30 years from now,
52:09you're going to pay me back. Okay? And
52:11you're going to pay me whatever the
52:13interest is over that whatever the index
52:15we're tracking is over that time. So, I
52:17get nothing during the life of it. It's
52:18a long-term thing. It's not for income.
52:20Remember that. Okay? Remember UITS,
52:23they're like a mutual fund a little bit,
52:24but they're not managed. They're
52:26supervised. They have a fixed portfolio
52:28and they mature on a date. This is [ __ ]
52:30should you know already. UITS basically
52:32have a maturity date. Most of the stuff
52:34I'm talking about, you have to know.
52:36Okay?
52:38If a client wants to increase capital,
52:41say they're talking about options and
52:42they want to increase capital, add
52:44yield, increase return, you're going to
52:46be you're going to basically sell a
52:48call. Okay. A restricted stock that's
52:51usually for like a reggg d if you buy a
52:53regggd. Your restricted stock is you
52:56have to hold it for six months fully
52:57paid and then you can sell it after
52:59that. Okay. Control stock is different.
53:01Control stock is if you're a if you're a
53:04pods partner office of directors or big
53:06ass shareholder more than 10% you have
53:08to follow the 144 rules. That's more of
53:10a federal thing. I don't think they're
53:11going to go into it much more about
53:13restricted stock that you can't sell it
53:15for however many days. Okay. Now 6
53:17months um
53:25okay so what are some things that are
53:27exempt? We have a video on this.
53:29Treasuries, munis, commercial paper
53:31under 270 minimum $50,000 denomination,
53:36an insurance company if they the
53:40variable like the variable life
53:41insurance is not exempt, but buying
53:43their bonds or stock is. Okay, banks,
53:46anything issued by a bank, religious,
53:48nonprofit, charitable, um, anything on
53:51an exchange, there's a whole list of
53:52that [ __ ] I'm not going to go crazy on
53:54that. Okay, now let's do a little math.
53:57I'm going to show you something that may
53:58or may not show up.
54:00Okay, so you get some version of this
54:02total calculate overall return. So you
54:04invest 10 grand three 10 grand in three
54:06different companies, right? And we're
54:08going to figure out what the overall
54:10return is. So let's do the math. So you
54:11invest 10 grand, you lose 20%, so you
54:13lose two grand, right? And then you got
54:16a $200 dividend plus that's a plus,
54:19right?
54:21So you lost 1,800. This is all you're
54:23going to do. Okay, the next one up 5%.
54:26So now you made $500, right? And you got
54:29a $600 dividend, right? Plus $600.
54:34So you're now this remember this 1,800.
54:37Now you're plus $1,100.
54:43And then the next one, you you made 7%
54:46which is $7.
54:49To change this to a plus just so you
54:51guys have it.
54:55and no dividends. So, so if you go okay,
54:57we lost 1,800 but we made 11 and seven.
55:01Well, this is 1,800. So, we lost 1,800
55:03or made 1,800. That would be a zero
55:06return. So, the answer would be zero in
55:08this. In case you see a question like
55:09this, just do it step by step. That's
55:12all you have to do. So, let's say your
55:14client, you have 27 grand left and
55:16you're after you lose money on a tech
55:18stock, you want income. Maybe an
55:20immediate annuity is the answer. Okay.
55:21So again, if I'm 40% money market, it's
55:2350% bonds and 10% stock and I'm in and
55:27I'm 85 years old, that's probably a good
55:29makeup. I wouldn't touch that. If
55:30anything, maybe add more bonds to make
55:32sure they have money. Okay, remember
55:33something. So if someone wants to redeem
55:35their mutual fund and move it, you have
55:37to follow suitability rules by finding
55:38what's matching and keeping them in the
55:41same keeping them in the same
55:45um fund family. Again, if you're going
55:47to move them out of the fund family, but
55:49there better be a damn good reason.
55:50Okay, there better be an incredibly good
55:52reason to move them out of the fund
55:54family cuz there really is no reason to
55:56do that. Okay, because you're going to
55:59have sales charges and they're not going
56:00to honor that and that's not going to be
56:01a good thing. Okay.
56:04Okay. So, if you were listening before
56:06and you heard me say it's going to be
56:08the end of the video, that's a trick.
56:10You had to be paying attention. I'm
56:11actually going to put the link here for
56:13the unlisted video which is going to be
56:15a magic thing for you. It's a bunch of
56:17questions that you might get the same
56:19vibe as the real test. So, don't go to
56:22the end, but then look for the link.
56:24Look for the link here. I maybe put it a
56:25second time. It's an unlisted video that
56:27you will only get if you saw this link.
56:30I will see you later. Let's [ __ ] go.
56:32Social media influencer. So, maybe
56:34there's a social media influencer and
56:36you're telling them what to do. They're
56:37not making disclosures. That could be
56:39considered market manipulation. If
56:40you're using an influencer to move a
56:42stock up and down, if you're on vacation
56:44as a rep, can you solicit clients? Yes,
56:47if they're on vacation or you're on
56:48vacation. As long as it's temporary
56:50residency, you're okay. I'll get to the
56:52CE stuff. Okay. Now,
56:55if an investor wants to buy gun stocks
56:57but not worried about political risk,
56:58that's not political risk. That's ESG or
57:00social criteria. Okay. Now, most likely
57:03um values. Okay. Now um tenants in
57:07common deceased goes to my estate it
57:09goes through probate the trade deficit.
57:12Okay if investors are spending remember
57:15you got we'll see maybe questions on
57:17this if you have a it's a trade deficit
57:20if US investors are spending money in
57:22another country that leads to the
57:24deficit. If foreign investors are
57:26spending money here that leads to a
57:28surplus. Okay,
57:30remember small cap is Russell 2000, not
57:33the Dow Jones, not the S&P 500. Okay,
57:37again, Orisa, if you want to be
57:38protected, you have to offer different
57:40asset classes, equity, bond, cash, stuff
57:42like that, and give them education and
57:44the ability to change every quarter.
57:46Okay, back to this. Um, I think we're
57:48good.
57:51Hedge funds versus venture capital.
57:53Okay, hedge fund is long. They could be
57:55long, short, they use arbitrage, they
57:56use leverage. They're looking for
57:58absolute returns. They're very they're
58:01lightly regulated usually under a reg.
58:03Only accredited investors can buy and
58:06then they can have some nonacredited but
58:08very limited. They're very liquid with
58:10with lockup periods. Okay. But they're
58:12looking for absolute returns. Venture
58:15capitalist sounds the same. They usually
58:17invest in early stage startups. They're
58:19extremely liquid, very, very long time
58:21horizon. again like a regggd pretty much
58:24accredited investors and they're looking
58:26for like big big returns early stage
58:30much longer time frame like hedge funds
58:32six months a year whatever venture
58:34capitalist 5 to 10 15 years okay QDIA
58:38qualified default investment alternative
58:40when so if you invest in if you open up
58:42a 401k and you don't make a choice on
58:44anything it will automatically pick age
58:46appropriate diversified and long-term
58:48focused funds for you automatically an
58:51example is like a target date fund or a
58:52balance fund. Like a balance fund always
58:54keeps you balanced, right? Between
58:56stocks, bonds, and preferred, right? Um
58:58or a managed account, but big one is a
59:00target based fund, right? So, say you're
59:0125, they're going to be much more in
59:03equity. As you get older, they do more
59:05bonds and less equity, and they they
59:07adjust automatically. That's a QDIA.
59:09Okay?
59:11If you do, this kind of protects you
59:13under Orisa because if you as the uh
59:16sponsor because if you do a QD if the
59:18QDAA goes into effect, it's going to put
59:20them in an appropriate hopefully
59:23um investment investment choice even if
59:26they don't choose one. QDRO is for
59:28divorce. Okay? It splits a retirement
59:30plan for child support, divorce, [ __ ]
59:32like that. Um the plan administrator
59:35will have to read it and approve it. you
59:37can take the money out with the QDRO
59:38without the 10% penalty if they roll it
59:41over. Okay? If so, they get it. They
59:44usually have 60 days like a wife for
59:45kids, they have 60 days to roll it over
59:48into into another um retirement account.
59:51This is for 401ks, not for IAS. Okay?
59:54Now, a QCD, qualified charitable
59:57distribution. Okay. This is where if you
59:59want money coming out of your IRA, you
1:00:02can never go into into a charity right
1:00:04away, but there are limits, right? It's
1:00:05like you can only do 108 grand a year.
1:00:08It's use basically you can use this to
1:00:12satisfy your RMD without getting taxable
1:00:15income because you take the money out up
1:00:17to 100 108 whatever it is a year. They
1:00:19may just say up to the distribution
1:00:21amount. You take the money out of your
1:00:22IRA, you send it to a charity right away
1:00:25and then you don't have to rev your RMD.
1:00:27Okay? Because it's not taxable. Maybe
1:00:29you have enough money and you don't want
1:00:30to take the money out. So you donate to
1:00:32charity, get the deduction and all that
1:00:33[ __ ] Now, this is a weird one. You must
1:00:35be 70 and a half. I know that's the old
1:00:38RMD number, but RMD is normally 73. They
1:00:42didn't upgrade it. It's still 7 and a
1:00:43half, which was the original RMD from
1:00:45like 5, 10, 15, 20 years ago. So, again,
1:00:47a QCD is a direct transfer from an IRA
1:00:50to a qualified charity. Probably can't
1:00:52be your charity. It's to help retirees
1:00:55satisfy their RMD requirement without
1:00:57having to pay taxes
1:01:00or increasing their taxable income. That
1:01:01could be more of it. Okay. NASA remember
1:01:04so any state that adopts this you have
1:01:07to do at least 12 hours of CE every year
1:01:10six hours of products and practice which
1:01:1210 FINRA so now six hours of products
1:01:15and practice if you're duly registered
1:01:17and you do FINRA CE you can use it for
1:01:20that six now another one is six hours of
1:01:24ethics and professional responsibility
1:01:26if you do share duty [ __ ] like that half
1:01:28of that 50% of that must be ethics okay
1:01:31so of the six three have to be at least
1:01:33ethics. So even if you're duly
1:01:35registered, you can only use the FINRA
1:01:37stuff for the products and practice, but
1:01:39only that six. Okay? You can't carry
1:01:41forward un you can't carry forward
1:01:42unused hours. Now
1:01:46C is tied to registration. If you don't
1:01:48finish
1:01:50your CE by the end of the first year,
1:01:53you're either called deficient or
1:01:54inactive. Okay? So So that means if you
1:01:56don't finish by the end of the year, you
1:01:58have another year to complete all of it,
1:02:00even the previous year. So, let's use an
1:02:01example. End of 2025, you don't complete
1:02:04the 12 hours. You're now CE inactive.
1:02:06You can still work and all that stuff,
1:02:08but then you have until the end of 2026
1:02:10to get both 25 and 26 is CE done. If you
1:02:14don't get it done, you will not be able
1:02:16to renew. Good. Ethics, fraud, and elder
1:02:18abuse. So, now elder, see, these are red
1:02:21flags. An elder withdraws a big amount.
1:02:23Family pressure suspected, you delay.
1:02:25Notify the um you delay. Maybe you delay
1:02:28it. Maybe notify the administrator.
1:02:30Maybe definitely if you think they're
1:02:31being fraud, um you notify you notify
1:02:34senior protection things. Okay. Um
1:02:38what else can we do with that one? Um
1:02:40you can do 15 days, a hold for 15 days
1:02:42on either distributions or trading,
1:02:44another 10 days, and another 30 days.
1:02:46Okay, moving on. And again, who are
1:02:49specified adults? Anyone over 18 with
1:02:51mental incapacity or anyone over 65,
1:02:54they should get a trusted contact
1:02:55person. We can't make them, but if they
1:02:57don't get it, you should notify. Um, you
1:02:59can now moving on from this, you c a
1:03:02client cannot wave the IA's duty of
1:03:05care. Okay? If they try to wave it like
1:03:07an exculpatory clause, they cannot wave
1:03:09the duty of care because the fiduciary
1:03:11always have to take the prudent dut
1:03:13prudent investor rule, the duty of care.
1:03:14I have to care for you. I, as a client,
1:03:16cannot wave that for you. Okay, inside
1:03:20information. You can do the trade if you
1:03:22decision made before you knew the inside
1:03:24information. So, let's say you place an
1:03:27order and then two minutes later you
1:03:29find out right you say you decide to buy
1:03:32shares 100 thou you know 5,000 shares of
1:03:34IBM and as you're entering the order you
1:03:37or right before you hit the order but
1:03:38they've already said they want to do it
1:03:39then you you find out inside information
1:03:41you can still place the order. Okay.
1:03:43Front running is jumping in front of a
1:03:45customer order or a trading head of a
1:03:46research report. They will be tested on
1:03:48that
1:03:51tax equivalent yield. I talked about
1:03:52already. Okay. Um I have some questions.
1:03:54I'm not gonna some of these I'm going to
1:03:56do. RMD.
1:03:58Okay. Proceeds from an IRA are included
1:04:00in your state taxes. Okay. Um I think
1:04:03that works. If you want it a if you get
1:04:06audited, you want the unqualified
1:04:08opinion. Pay attention to what I'm
1:04:09saying. Okay. If you're sending
1:04:11statements, if the IIA is sending
1:04:14statements to the client, that mean
1:04:16directly, that means they have custody.
1:04:17They need a surprise audit. Okay,
1:04:19remember something. Record keeping is
1:04:21for five years minimum. All record
1:04:23keeping for IAS is at least five years.
1:04:25Not five years exactly at least five
1:04:28years. Soft dollar it has to benefit the
1:04:31client. You're going to see the audit a
1:04:33couple times. If you have custody, you
1:04:35get an audit. Okay, that's the big
1:04:36thing. Okay. Now,
1:04:39IAS, I ARS, and agents cannot lend to
1:04:42clients unless they're a lender. The
1:04:44whole lending borrowing thing is not
1:04:45available to them unless it's an
1:04:47affiliate of the firm or or they're a
1:04:50lending institution. Broker dealers can
1:04:52lend to clients all the time, any client
1:04:55under reggg t margin rules. And you have
1:04:57to let them know if I lend money on a
1:04:59margin, increase risk, increase reward,
1:05:02but also increase risk because you're
1:05:03leveraging. Okay. Um, an investment
1:05:06advisor can't pay pay a former rep
1:05:08trailing commissions if you're not
1:05:10licensed unless they sign an agreement
1:05:11ahead of time. Okay. Um, advertising.
1:05:15It's considered advertising if you send
1:05:17it to more than one person. If it's up
1:05:18to 10 people, you have to keep a record
1:05:20of who you send it to. Over 10, just
1:05:22keep a record of what you sent. If you
1:05:24give someone a chart or some sort of
1:05:26tool, you have to disclose the
1:05:27limitations and the difficulties.
1:05:32SEC 1092. Just know that they add in if
1:05:35you're giving investment advice and you
1:05:36have to register if you're a pension
1:05:38consultant, financial planner, or sports
1:05:41agent. Okay? If it's regular,
1:05:42compensated, and involved securities. If
1:05:44the sports agent is literally just
1:05:46helping you sign contracts, don't really
1:05:48[ __ ] care. Okay? Private fund
1:05:50advisor. That's if you're only managing,
1:05:53give advising private funds, hedge
1:05:54funds, venture capitalists, PE firms. As
1:05:57long as your assets
1:05:58AUMumumumumumumumumumumumumumumumumumumum
1:05:59aren't under 150, you're exe you're an
1:06:01exempt reporting advisor. You still have
1:06:03to report by filing an ADV, but you
1:06:04don't have to register. That 150 number
1:06:07is not for venture capitalists. You
1:06:08could be a billion dollar VC and you
1:06:11don't have to register.
1:06:14The this the state can require higher
1:06:17net worth or bonding requirements if
1:06:19they have custody. Freed print shy bond
1:06:21is only for custody but discretion is 10
1:06:24grand usually full custody full custody
1:06:26or full discretion is usually 35 grand.
1:06:28Okay. If you have discretionary
1:06:30authority over accounts you will
1:06:31probably have to put a shy bond or held
1:06:33to a higher net worth. You are excluded
1:06:36from the definition of an AR if you only
1:06:39give ministerial or impersonal advice
1:06:41and you're not compensated on any of
1:06:43this [ __ ] Okay. Now cyber security
1:06:46there's five points. Somebody got a
1:06:47question on this. Okay. So on cyber
1:06:49security there's five things you five
1:06:51things you got to worry about. One you
1:06:53have to identify understanding and
1:06:55managing cyber you got to identify the
1:06:57risks that are from that are for your
1:06:59firm. You have to protect which means
1:07:01you have to have some sort of safeguard
1:07:03to protect the controls data security
1:07:05and have training. That's where they
1:07:07send the link to you and you got to like
1:07:09don't click on the link detect. You have
1:07:11to be able to find when there's an
1:07:13intrusion or unauthorized activity. You
1:07:15have to have a thing responding how
1:07:17you're going to respond. Outline the
1:07:18actions when the cyber security event
1:07:20happens because it's going to happen.
1:07:21And then how do you recover? How do you
1:07:23restore the capabilities? So identify,
1:07:25protect, detect, respond, and recover.
1:07:27Sounds like stop, drop, and roll. Sounds
1:07:29like dip, duck, duck, dip, duck, duck,
1:07:31cover, and dip. Okay, now identify, find
1:07:34the risks, protect. How do you safeguard
1:07:36them? Detect. H how do you find them?
1:07:38Respond. How do you respond to it? And
1:07:41recover is how do you fix this [ __ ]
1:07:43Okay, now thank you very much. That's
1:07:44the end of the video. Hopefully it's
1:07:46around an hour. called my Siri 66 quick
1:07:48and dirty power hour. Um, I will see you
1:07:51later. Hopefully you got an idea of what
1:07:52the what this Easter egg is. If not, go
1:07:55watch it again. We'll find it. I will
1:07:57see you guys on the flippity flop side.
1:07:59Adios. Have a great night.
1:08:03[Music]
1:08:25Heat. Heat.
1:08:32[Music]
1:08:51Heat. Heat.
1:08:58Heat. Heat.
1:09:00[Music]
1:09:14[Music]
1:09:25[Music]
1:09:33Hey,
1:09:41[Music]
1:09:46hey, hey.
1:09:48[Music]
1:10:05[Music]
1:10:12[Laughter]
1:10:14[Music]
1:10:24[Music]
1:10:39[Music]
1:10:46[Laughter]
1:10:52Heat. Heat.
1:11:01Heat.
1:11:18Heat.
1:11:24[Music]
1:11:41[Music]
1:12:06Haha, you fell for it. You didn't watch
1:12:07the whole video cuz I did a fake out. If
1:12:09you made it this far, that means you
1:12:11didn't get to the rest where I gave you
1:12:13actually where the unlisted video was.
1:12:15You got to go back and find it. It's
1:12:16It's not too far back. I'm not that much
1:12:17of a dick, but you got to go back and
1:12:19find it because it's not at the end of
1:12:21this video. It's an unlisted video that
1:12:23you will have to find in a link from
1:12:24this video. Let's go and go. I got to be
1:12:26a little funny. See you later.

About this transcript

This page contains the full transcript of Series 66 Exam Power Hour 2026:Facts you need to know (Series 65 also) by Series 7 Whisperer, generated from the public captions YouTube serves with the video. The transcript has 13,079 words across 1,909 segments, with the original timestamps preserved so you can click any line to jump to that moment in the embedded player.

What you can do with it

Use the transcript to take notes, quote the speaker, build a study guide, generate a summary with ChatGPT or Claude via the YouTube Summary tool, or export it as a timed subtitle file with YouTube to SRT. You can also re-open it in the transcriber to translate the transcript into 100+ languages.

Free YouTube transcript tool

YouTube2Text is a free YouTube transcript generator — no signup, no daily limit. Paste any YouTube link and get the full transcript instantly, with timestamps, click-to-jump, translation to 100+ languages, AI prompts for ChatGPT, Claude, and Gemini, and exports to TXT, SRT, VTT, or Markdown.