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Earnings Test Calculation
In 2026, a married couple filing jointly has taxable income of $90,000, which includes $10,000 of long-term capital gains. What federal tax rate applies to the $10,000 of long-term capital gains? 0% 15% 20% Ordinary income tax rates CLICK TO REVEAL ANSWER Expand A is the answer For 2026, the 0% long-term capital gains threshold…
The Fiduciary Standard in Practice: Where Advisors Still Get It Wrong
Good to Know Most advisors would tell you they act as fiduciaries. Many believe it. Some even document it. But in practice, fiduciary failures rarely come from intentional misconduct. They come from misunderstanding what the standard actually requires. The CFP Board’s Code of Ethics is clear: CFP® professionals must act as fiduciaries at all times…
Late Medicare Enrollment Penalty
Course: Insurance PlanningLesson 10: Fundamentals of Social Security and Medicare Student Question: Hi, Under the ‘late enrollment penalty’ link, there is a example given by Medicare. It states that there is a 20% penalty because 30 months had lapsed, or at least 2 12-month periods post initial enrollment had lapsed. The date given for initial…
CFP Board Code of Ethics
In 2026, a client has a 529 plan for her daughter that has been open for 20 years. The beneficiary has graduated college and does not need the remaining funds. The account balance is $60,000, all attributable to contributions and earnings made more than five years ago. The client is considering rolling funds from the…
CFP® Exam Pass Rates: What the Numbers Really Reveal About the Profession
Good to Know Every CFP® exam cycle generates the same reaction: “What was the pass rate?” It’s the wrong first question. Recent CFP Board statistics show overall pass rates generally ranging from the mid-60% to low-70% range.¹ That consistency signals calibration – not randomness. What the Range Signals A pass rate in this range reflects…
Loan Impact on Basis in a Modified Endowment Contract
Course: Insurance PlanningLesson 15: Income Taxation of Life Insurance Student Question: Hello, Can you help me better understand the difference between policy basis in a normal policy and policy basis on a modified endowment contract. From the Coursework: But for MEC purposes, the basis is increased by any portion of loans that were considered taxable…
CFP Board Code of Ethics
A CFP® professional is recommending a rollover from a client’s 401(k) plan into an IRA that will generate higher ongoing advisory fees. The 401(k) plan offers low-cost institutional share classes not available in the IRA. Under CFP Board’s Code of Ethics and Standards of Conduct, which of the following actions is required? Recommend the rollover…
Behavioral Finance in Volatile Markets: Why Technical Skill Isn’t Enough
Good to Know Most market downturns do not destroy portfolios. They destroy discipline. CFP® professionals often emphasize technical expertise – asset allocation, tax efficiency, withdrawal sequencing. Those skills are foundational. But in volatile markets, technical precision alone does not determine long-term client outcomes. Behavioral management does. Volatility Exposes the Planning Gap Research in behavioral economics…
Phantom Stock
Course: Investment PlanningLesson 5: Fundamental Equity Analysis Student Question: Hello, What is the difference between Stock options and Restricted stock plan or phantom stock? Seems confusing. Instructor Response: Hi, Onward and Upward,