CFP® Certificants in the News Despite the specter of the pandemic, the number of CFP® Professionals grew in 2020 to 87,726. We will rely upon selected excerpts from CFP Board Reports Impressive 2020 Growth to summarize the growth and increasing diversification of CFP® Professionals. Increasing Diversity According to CFP Board CEO Kevin Keller, “The increase in…

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Course: Fundamentals of Financial PlanningLesson 1: The Personal Financial Planning Process Student Question: Good evening.  In Practice Standard B-3 (shown below), is the “reasonable basis” why advisors have client agreements stating what services are provided? Practice Standard B-3 The Practice Standards set forth in the Financial Planning Process – a CFP® professional must comply with…

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Good to Know President Trump signed the COVID-19 and Tax Extenders Bill into law on December 27, 2020. This blog will focus upon the following key provisions: Pandemic Relief CARES Act Extensions and Pandemic Provisions Tax Provisions Disaster Tax Relief Tax Extenders Pandemic Relief The bill provides a refundable tax credit in the amount of…

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Course: Investment PlanningLesson 9: Fixed Income Securities Student Question: There is a question regarding duration that I continue to struggle with. Which of the following are true: Lower coupon bonds are more sensitive to interest rates than high coupon bonds. There is inverse relationship between bond prices and change in interest rates. There is a positive relationship between…

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CFP® Certificants in the News More than five of every ten Americans are experiencing “high” to “very high” financial stress levels as a result of the pandemic according to a survey commissioned by CFP Board and released December 3, 2020. Admittedly, that is hardly a seismic revelation. But if we dig below the headlines, you…

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Course: Investment PlanningLesson 14: Evaluation Portfolio Performance Student Question: Hello – I’m a little confused about the example (below) discussing an heirloom of only sentimental value. Why would this be titled at all for a will, especially since an earlier lecture said items of no value would pass through the will as the situation does…

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Good to Know- Elections matter. They matter for a number of reasons, many of which are far more profound than financial effects and, as such, are out of any financial professional’s control. However, the financial advisor or financial planner may help prepare a client for potential tax changes in 2021. If, as a result of…

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Course: Investment PlanningLesson 14: Evaluation Portfolio Performance Student Question: Hello, In calculating Information Ratio, why do we need the denominator to be Standard Deviation of the difference in portfolio and index returns?  This is unlike the Sharpe Ratio, where the denominator is Standard Deviation of the Portfolio. Doesn’t the Standard Deviation of the Portfolio indicate…

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Course: Investment PlanningLesson 13: Asset Allocation Student Question: Hi, Can you help me understand the difference between Kurtosis and Skewness?  I can’t quite piece it together. Thanks, Meg Instructor Response: Hi Meg, Entire books have been written on this topic, but the following summary should get the points for you on the CFP Board Exam…

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