Blog

Bi-weekly Refinance Payment Calculation

By Dan Madden, CFP®

Mark refinanced his home mortgage to a 30-year fixed mortgage with biweekly payments. How much is each payment if he owed $410,000 at the time of the refinance and the interest rate is 7%? $1,021 $1,258 $1,521 $1,601 CLICK TO REVEAL ANSWER Expand B is the answer. Mark pays his mortgage every two weeks which…

Read More

529 To Roth IRA Rollover

By Bruce Starks, CPA, CFP®

Good to Know Your prospect started saving for their child’s college education early and consistently. Fast forward to when the child graduates from college. Now it’s obvious there’s $35,000 in the 529 plan that will not be needed for college.  When they turn to you for advice, how do you advise them? Here’s an interesting…

Read More

Recognition on Installment Notes

By Bruce Starks, CPA, CFP®

Course: Estate PlanningLesson 12: Valuation and Freeze Techniques to Reduce Estate Tax Liability Student Question: I’m not sure how gains are spread out over the course of the note if these are typically structured “as interest only with a balloon payment at the end”.  Here’s the language from the lesson: Instead of an outright sale, an…

Read More

Actuarial Assumptions in Defined-Benefit Pension Plans

By Dan Madden, CFP®

Which of the following statements concerning the various actuarial assumptions used in estimating an employer’s contributions to a defined-benefit pension plan is correct? The higher the assumed rate of investment income, the larger the employer’s assumed contribution rate. The higher the employee turnover or termination rate, the larger should be the employer’s assumed contribution rate.…

Read More

CFP® Certification—A Competitive Edge

By Bruce Starks, CPA, CFP®

CFP® Certificants in the News According to CFP Board, “more than 10,000 firms across the U.S. are employers of CFP® professionals, and with good reason.” The chart below testifies to the explosive growth of clients that prefer working with a CFP® Certificant in 2023, rising dramatically to over eight of every ten clients from only two…

Read More

Interest Rate Risk in a Bond

By Bruce Starks, CPA, CFP®

Course: Investment PlanningLesson 10: Fixed Income Securities Analysis Student Question: I’m not clear why holders of long-term bonds are subject to interest rate risk. If a 20-year bond is purchased at par with a coupon rate of 6.25% ($62.50/year), it seems to me that the investor would still receive $62.50 a year regardless of interest rate changes. What…

Read More

Medicare Part A Expenses

By Dan Madden, CFP®

Which of the following individuals currently covered by Medicare Part A will not have any of their expenses covered by Medicare Part A? Evan who spent one week in hospice care before losing his battle with cancer. Felicia who was treated by her doctor for Strep throat. Greg who was needed a walker following hip…

Read More

Student Loan Forgiveness Fraud

By Bruce Starks, CPA, CFP®

Good to Know The Federal Trade Commission cautions that “scammers might try and tell you they can help you avoid repayments, lower your payments, or get your loans forgiven – for a price.” That sage advice could not be more timely. Whenever there’s confusion over student loans and dishonest money to be had, scammers flock…

Read More

Skip Persons and the Generation Skipping Transfer Tax

By Dan Madden, CFP®

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