Bruce Starks, CPA, CFP® – Page 22

Prepare for the CFP Board Exam

CFP® Certificants in the News You’re completing or have just completed the coursework required to take the CFP Board exam (the exam). Now what? Here are the potential next steps for you: Respect the exam’s breadth and depth, Budget your study time, Register for the exam, Use CFP Board resources, and Take a review course.…

Interest Rate Risk in a Bond

Course: Investment PlanningLesson 10: Fixed Income Securities Analysis Student Question: I’m not clear why holders of long-term bonds are subject to interest rate risk. If a 20-year bond is purchased at par with a coupon rate of 6.25% ($62.50/year), it seems to me that the investor would still receive $62.50 a year regardless of interest rate changes. What…

Winners and Losers in the 2022 Inflation Reduction Act

Good to Know Laws enacted by those ladies and gentlemen we send to Congress are seldom a panacea for all. The 2022 Inflation Reduction Act certainly fits that mold, as will be evident as we summarize the winners and losers under the Act. But first, here’s a quick editorial note—as with all of our articles,…

Defining Basis Points

Course: 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 a…

Protecting Public Trust with CFP Board Discipline

CFP® Certificants in the News Financial advisors, financial planners, and their employers have a vested interest in preserving, if not building upon, public trust in CFP® Certification. This article will focus on a specific interim suspension that, if anything, may initially err on the side of protecting public trust while ultimately providing a just result…

Social Security Retirement Benefits

Course: Insurance PlanningLesson 10: Social Security Student Question: This question (below) doesn’t quite make sense to me. Could you clarify why the correct answer is D? Robin Elizabeth qualifies for a retirement benefit of $250 and a spouse’s benefit of $400. At her full retirement age, she will receive which of the following? A) Both $250…

CFP Board Pass Rates—July 2022 Exam

CFP® Certificants in the News This article will summarize pass rates, note consistency with prior exam results, and highlight demographics related to the July 2022 CFP Board exam. We begin with pass rates. Consistency First-time exam takers scored an average of 69%, compared to 67% (March 2022) and 62% (November 2021), and Repeat exam takers…

Beta as a Measure of Risk

Course: Investment PlanningLesson 1: Key Principles of Investing Student Question: In the CFP Board question below I’m wondering why (1) is part of the correct answer. How is beta a measure of systematic, non-diversifiable risk? On the page, it talks about how beta is a measure of risk for a security compared to the overall…

Clients Are Not Locked Into High-Tax States

CFP® Certificants in the News encourages membership in the Financial Planning Association. Later in this article, we will reference a highly topical article appearing in the Journal of Financial Planning. We will feature a strategy that high-income clients can use to slash their state income tax rates in this report. But first, let’s admit that…

Taking Advantage of Down Markets

Good to Know A decorated marine combat veteran and friend of the author once compared being under enemy attack to corrections in the stock market. His advice was to “stay in your foxhole when the bombs are falling and make no sudden moves.” While many would completely agree with this Marine’s timeless advice, others would…