Bruce Starks, CPA, CFP® – Page 20

Does Recommending Cryptocurrency Violate CFP Board Rules?

CFP® Certificants in the News You’re a CFP® Professional with an investment advisory practice and you just advised a client to purchase cryptocurrency assets (CRAs). Did you just violate the ethical standards? Should you expect a communication from the Disciplinary and Ethics Commission? Here’s the seemingly equivocal answer—maybe yes and maybe no. This article will…

How to Avoid a Killer IRA Mistake

Good to Know Choosing the wrong IRA type is an all-to-common client mistake that can be difficult and expensive to correct. Financial professionals can help clients avoid that mistake by fully informing their clients of the key factors to consider. There tend to be two schools of thought to avoid—in the author’s opinion—when choosing between…

Life Insurance Taxation

Course: Insurance PlanningLesson 12: Types of Life Insurance Student Question: Am I correct in thinking that, as a rule, if a life insurance policy is paid for with after-tax dollars (non-deductible) that death benefit proceeds are always received tax free? Instructor Response: You are directionally correct but let’s dig a little deeper. Generally, death benefits…

Savvy Year-End Tax Moves for Individual Taxpayers

Good to Know Time is running out for smart year-end tax moves. Yet, client concerns over economic and political turmoil can interfere with year-end tax planning. For example, how will the market perform given record inflation, the FED’s interest rate hikes, and the threat of recession? What will happen to tax rates and deductions in…

Speak Now or Forever Hold Your Peace

CFP® Certificants in the News “Certified Financial Planner Board of Standards, Inc. (CFP Board) announced…that it is seeking public comment on proposed changes to CFP Board’s Procedural Rules. The proposed changes are intended to modernize CFP Board’s enforcement processes and further CFP Board’s work to uphold its Code of Ethics and Standards of Conduct (Code and Standards) for the…

Value of Life Insurance in Buy-Sell Agreements

Course: Insurance PlanningLesson 17: Business Uses of Life Insurance Student Question: Do buy sell agreements accounts for projected growth of the company? Do the life insurance benefits increase over time to account for projected growth, or perhaps can they invest and grow conservatively to keep up with inflation (or COLA on the plan)? Instructor Response:…

The CFP Board Exam and the 10-Year Rule

CFP® Certificants in the News CFP Board generally considers regulations fair game on the CFP Board exam if they become effective within six months of the exam date. Simple enough, right? As you might suspect, that’s not always the case. We’ll analyze the IRS’s recent re-interpretation of the stretch-IRA killing required distribution rules as a…

Carryover Basis

Course: Income Tax PlanningLesson 15: Property Transactions Student Question: I have a question from this question below regarding the 1033 election for involuntary conversions. “Sparky’s office building was destroyed by fire on January 2nd of last year. The building had an adjusted basis of $620,000. On January 15th of this year, the insurance company paid…

Four Reasons NOT to Rely on Social Security Disability Insurance

Good to Know You just asked your client about their long-term disability plan. They replied “I have that covered. I have Social Security Disability Insurance.” Here’s a hint for the rest of this article—your client probably does NOT have this risk “covered” if that’s the only disability insurance they have. There are at least four…

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…