Bruce Starks, CPA, CFP® – Page 15

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…

What Can A Children’s Story Teach Us About Retirement Savings?

Good to Know A financial planner’s or advisor’s role can be as much about implementation as it is about inspiration. The best retirement savings plan in the history of humankind may be doomed to failure when a client is disengaged or procrastinates. Sadly, too many of our clients understand the importance of putting the plan…

Percentage of Completion Method

Course: Income Tax PlanningLesson 10: Recognition of Expenses, Losses, and Deductions Student Question: Question 5 (below) did not make sense to me. I started out by breaking down by year — 400,000/2,100,000*3,000,000 and so forth, but did not arrive at the correct answer. So then I tried adding up 3 year — 400+650+700/2100000*3,000,000. That wasn’t…

Trailing Commissions and Sales-Related Compensation

CFP® Certificants in the News True or false, a CFP® professional who receives trailing commissions cannot represent their practice as “fee-only” under any circumstance. The answer may surprise you. Read on to see why. CFP Board “Standard A.12 of the Code of Ethics and Standards of Conduct provides that a CFP® professional may not make false or misleading representations…

Custodial Accounts and Gifting

Course: Estate PlanningLesson 13: Case Study Online Student Question: If a check given by Mary to Peter was deposited into a custodial acct where Mary was the custodian, doesn’t that mean that Mary didn’t give up ALL control, so it’s not a complete gift? Instructor Response: That’s a great way to approach completed gift questions!…

Four Opportunities for 2024—Secure Act 2.0

Good to Know A savvy financial advisor can help a client maximize key benefits in 2024 from the Secure Act 2.0, including: Required minimum distributions from Designated Roth Accounts, Emergency Savings Account, Student Loan 401(k) matching contributions, and 529 Plan to Roth rollovers. The IRS has not clarified how these 2024 changes will be implemented. …