Blog
CFP Board Reviews Competency Standards: What This Means for the Future of CFP® Certification
CFP® Board Updates In June 2025, the CFP Board opened a public comment period to gather feedback on proposed revisions to its Competency Standards – the foundational framework that defines what CFP® professionals must know and demonstrate to serve clients ethically and effectively. Although the August 5 comment deadline has now passed, this initiative marks…
Read More
Crummey Powers
Course: Insurance PlanningLesson 16: The Irrevocable Life Insurance Trust Student Question: Must Crummey powers always be in effect to apply the annual gift tax exclusion in order to transfer to an irrevocable trust? Or is it the case that as long as it was done once, will all transfers be eligible for the annual gift tax exclusion?…
Read More
Tax Avoidance versus Evasion
Which of the following scenarios best illustrates tax avoidance rather than tax evasion? Sarah intentionally underreports her cash income from a side business to reduce her taxable income. Tom invests in a municipal bond fund to receive tax-free interest income. Lisa pays her household employee in cash and does not issue a Form W-2 or withhold…
Read More
CFP Board Survey Reveals Financial Misinformation Crisis: Why CFP® Professionals Matter Now More Than Ever
CFP® Board Updates In June 2025, the CFP Board released results from its latest national survey titled: “Steering Clear of Financial Misinformation: A Survey of Americans.” The findings were striking – and a wake-up call for financial professionals everywhere. Key Findings from the CFP Board Survey 57% of Americans say they’ve made financial decisions they…
Read More
Skip Persons and the Generation Skipping Transfer Tax
Course: Estate PlanningLesson 7: Transfer Taxation IV – Generation Skipping Transfers Student Question: Regarding example below, would the death of the father, Stephen, not move Andrew one step up making him only one generation below Mrs. Jones? Would this not remove the generation skipping transfer tax? EXAMPLE: Upon her death, Mrs. Jones left her estate…
Read More
Appropriate Emergency Fund
James and Lisa are married, both age 40, with two children. They have the following monthly expenses: Mortgage: $2,500 Utilities: $400 Groceries: $1,000 Car loans: $600 Insurance premiums: $500 Discretionary spending: $900 They both have stable jobs and contribute equally to a combined gross income of $190,000/year. According to CFP Board recommendations, how much should…
Read More
CFP Board Appoints New Technology Leader: What It Means for the Future of Financial Planning
CFP® Board Updates On June 17, 2025, the CFP Board announced the appointment of Barry S. Gersten as its new Head Technology Officer – a strategic leadership role that signals where the profession is heading: deeper integration of technology, innovation, and digital enablement across all areas of CFP® education and certification. This appointment isn’t just…
Read More
Investment Receipts Definition
Course: Fundamentals of Financial PlanningLesson 3: Personal Financial Statements Student Question: Hi. The lesson states that when looking at the cash flow statement, investment receipts include: interest, dividends, mf capital gains, etc. Are those funds included in the category of investment receipts even if they don’t withdraw the money from their investment accounts? Instructor Response:…
Read More
Proper Asset Allocation
A client is 40 years old and has a moderate risk tolerance. She has $500,000 to invest and a 20-year time horizon. Which of the following asset allocations best aligns with her risk tolerance and time frame? 80% equities, 20% bonds 60% equities, 35% bonds, 5% cash 50% equities, 50% bonds 90% equities, 10% cash…
Read More