Bruce Starks, CPA, CFP® – Page 2

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…

Savvy Moves To Pass The CFP Board Exam

CFP® Certificants in the News “I have seen the enemy and he is us.” This unlikely exam-taking advice comes to us courtesy of the late Walter Kelly, satirical cartoonist extraordinaire and creator of the wildly popular character of Pogo. Respectfully, the author has taken the liberty to slightly modify Mr. Kelly’s sentiment with “I have…

Defining Basis Points

Course 3: Investment PlanningLesson 15: Fundamentals of Derivatives – Futures and Options Student Question: Can you please explain what Basis points are and how/why they are generally used? Instructor Response: There are 100 basis points in 1%. Basis points are merely a common method of measuring investment fees or returns. An exchanged traded fund may charge…

Beta as a Measure of Systematic Risk

Course 3: Investment PlanningLesson 1: Key Principles of Investing Student Question: I am having a difficult time conceptualizing Beta as a measure of only systematic risk AND as a measure of volatility relative to the broader market. By way of illustration. Assume an individual equity has wild swings in value over a one year period…

Counting Your Eggs Before They Hatch

Good to Know The Tax Cuts and Jobs Act (TCJA) of 2017 introduced significant tax reductions for individuals and businesses, with many provisions set to expire at the end of 2025. The likelihood of these provisions expiring depends on legislative actions taken before that deadline. In this article we’ll review: The legislative environment, Key influences,…

Don’t Miss These CFP Board Developments

CFP® Certificants in the News Just in case you missed these announcements, be aware that the CFP Board recently announced two significant developments. The Clock is Ticking: Comment Period Ending — Proposed Revisions to Competency Standards On December 17, 2024, the CFP Board’s Board of Directors sought public comment on proposed changes to the Competency…

Revocable versus Grantor Trusts

Course: Estate PlanningLesson 9: Income Taxation of Trusts and Estates Student Question: Can you refer me to a comparison (or just write a few notes) on how a grantor trust differs from a revocable trust and how a non-grantor trust differs from an irrevocable trust? They seem synonymous respectively to each other. Thank you! Instructor…

Wake Up Call for Retirement Savings

Good to Know Let’s frame the challenge faced by far too many Americans. Confidence in a comfortable retirement remains soberingly low. Consider this: Less than half of Americans feel confident about their retirement savings, Nearly one-third of Americans plan to depend solely on Social Security for retirement income, and The average annual Social Security benefit…

Understanding the Relationship Between Coupon Rates and Duration

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:1-Lower coupon bonds are more sensitive to interest rates than high coupon bonds.2-There is inverse relationship between bond prices and change in interest rates.3-There is a positive relationship between coupon rates and duration.…

Top 5 Reasons to Become a CFP® Professional

CFP® Certificants in the News The new year is upon us and while January resolutions are common, the author encourages you to take a deep strategic look at your financial career, especially if you’ve yet to gain CFP® certification. This designation is one of the most recognized and respected credentials in the financial planning space;…