Bruce Starks, CPA, CFP® – Page 15

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. …

Net Present Value Calculation

Course: Fundamentals of Financial PlanningLesson 5: Using the Financial Calculator Student Question: I have a question about NPV. In the section “NPV and IRR Review Questions”, the first question references someone trying to decide if they should prepay tuition. Here is the question: Instructor Response: When I look at the answer keystrokes, it appears as…

Maximum Family Benefit

Course: Insurance PlanningLesson 10: Social Security Student Question: Does the maximum family benefit apply to a husband and wife that are both fully insured if the combined total between the two exceeds the maximum family limit? If I understand correctly, the maximum family limit only applies if there are beneficiaries within the family receiving benefits…

Artificial Intelligence—Friend or Foe?

Good to Know Artificial intelligence is either the greatest threat to our species or the greatest boon to humankind, depending on what headline you read. The author makes the cheerful assumption that AI does not become “self-aware” and eradicate humanity á la “Terminator.” Neither this article nor financial planning will matter if the author has…

Phantom Stock

Course: Investment PlanningLesson 5: Fundamental Equity Analysis Student Question: What is the difference between Stock options and Restricted stock plan or phantom stock? Seems confusing. Instructor Response:

CFP Board Urges Senate to Pass Bill to Protect Seniors

CFP® Certificants in the News You may be encouraged to know that the U.S. House of Representatives, regardless of their political party, can still rally behind a noble cause. The Financial Exploitation Prevention Act passed the House with a bipartisan vote of 419 to 0 and now awaits action by the Senate. How exactly would…