Bruce Starks, CPA, CFP® – Page 14

How Safe is Your Client’s Cash?

CFP® Certificants in the News CFP Board expects certificants to understand “safe haven investments” of cash. A safe haven in this context is an account with a low default risk, as in bank deposits guaranteed by the Federal Deposit Insurance Corporation (FDIC). You may have heard that cash deposited into a federally chartered bank is…

Real Estate Income and IRA Contributions

Course: Retirement PlanningLesson 1: Using IRAs to Build and Distribute More Retirement Income Student Question: This page states that rental income is not included in the definition of earned income. If the client is a professional real estate developer whose income is derived mainly from rental income, would they be able to contribute to an…

How Have You Planned for Healthcare Expenses?

Good to Know How will you cover your retirement healthcare costs if you retire before age 65? There may be more options than you think! Over the next few weeks, the author will highlight key alternatives for retirees too young to qualify for Medicare. This article, Part 1 of a series, will highlight the pros…

Donating Short-term Appreciated Securities

Course: Income Tax PlanningLesson 15: Property Transactions Student Question: In the lesson, deducting donations of ‘cash’ versus ‘long term appreciated securities’ are differentiated. I’m curious about “short term appreciated securities”. In other words, if I own a stock – bought at $10,000 and it’s worth $50,000 when I donate, but I’ve only owned it 6…

Passing Property Via Will

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 will as the situation does not…

Long-Term Disability Coverage Trap

Good to Know What’s worse than never accumulating wealth? Losing it after you’ve accumulated it! From that perspective, an underinsured long-term disability can zap a client’s wealth faster than the government can spend tax dollars. When, if ever, has your client reviewed their LTD insurance policy? They may be under the mistaken impression that the…

Donating Short-term Appreciated Securities

Course: Income Tax PlanningLesson 15: Property Transactions Student Question: In the lesson, deducting donations of ‘cash’ versus ‘long term appreciated securities’ are differentiated. I’m curious about “short term appreciated securities”. In other words, if I own a stock – bought at $10,000 and it’s worth $50,000 when I donate, but I’ve only owned it 6…

This Short Quiz Can Keep You Out of Trouble With CFP Board

CFP® Certificants in the News CFP Board reminds us of the duty to report ethical matters in their July Newsletter article—Focus on Ethics: Duty to Report Information to CFP Board. This brief quiz will test your understanding. True or False, a CFP® professional must report the following to CFP Board within 30 days? Being named…

Can Your Clients Avoid Capital Gains Tax?

Good to Know Yes—even clients with a 6-figure income can pay no tax on long-term capital gains. Sound too good to be true? Read on to see how many of your current clients qualify. Long-Term Capital Gain (LTCG) Rates We tend to assume that clients with LTCG and an above-average income will pay at least…

Business Uses of Life and Disability Insurance

Course: Insurance PlanningLesson 17: Business Uses of Life and Disability Insurance Student Question: I have a quick question regarding buy/sell agreement; not clear who would pay the premiums on disability and or life insurance on the principals and the key employees? Instructor Response: Great question. A buy-sell agreement relates to owners of the business while…