Bruce Starks, CPA, CFP® – Page 24

Clarifying Tort Liability

Course: Retirement PlanningLesson 2: Qualified Plan Advantages and Disadvantages for Employees and Business Owners Student Question: Hi, I have a few questions regarding tort liability. Negligence is Tort Liability? Why isn’t it contractual? Are all torts criminal in nature? Instructor Response: Hi, Good questions here. See below for my response to each. Yes Tort law…

Chapter 13 Bankruptcy Means Test

Course: Estate PlanningLesson 13: Case Study Online Student Question: Hi, I am a little confused how one set amount – $100 – is the threshold for means testing a bankruptcy petitioner, when the amount of debt a borrower may owe can vary by large amounts. It would seem the amount left over (income minus allowable…

Get the CFP® Certification: 3 Key Reasons

CFP® Certificants in the News CFP® Certification is fast becoming a “must-have” designation for at least three reasons: Client awareness, Fiduciary Ethical Standard, and Doing well by doing good. Client Awareness An impressive 83% of consumers are aware of the CFP® Mark,1 far outstripping consumer awareness of other financial planning designations. CFP Board played a…

Corporate Bonds in the Marketplace

Course: Investment PlanningLesson 9: Fixed Income Securities Student Question: Hi, Just a question about Corporate Bond Funds. Gathering my information from the book, it seems they are “debt notes” insured to keep the company going. If they are not repaid the person who accepted the “bonds” can sometimes take assets in the company, like equipment…

Avoid Turning $1,000,000 into $12,000

Good to Know Imagine an individual investor passionate about a specific stock (it happens more often than you might think). Assume the investor’s portfolio is worth $2 million, but $1 million is in just one stock. How could that $1,000,000 concentration hemorrhage into only $12,000 in just over one year? Sadly, that’s precisely what happened…

Donating Short-term Appreciated Securities

Course: Income Tax PlanningLesson 15: Property Transactions Student Question: Dear Greene Consulting Team – 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…

Margin Call

Your client purchased Beta, Inc. publicly traded shares at $150 per share with an Initial Margin of 50%. The maintenance margin is 25%. A margin call will occur below what price per share? $87.50 $100.00 $112.50 None of the above CLICK TO REVEAL ANSWER Expand B is the answer. Margin Call Price = Initial Purchase…

Independent RIAs: Three Trends to Thrive

CFP® Certificants in the News CFP Board reports in its March 24, 2022 article that “Registered investment advisor (RIA) firms are an important factor in the future of the financial planning profession…” The article discusses how three trends offer independents a path to continued growth including: Hyper-specialization, Increased personalization and Digitalization. The text in quotation marks…

Are Custodial Accounts Included in the Donor’s Gross Estate?

Course: Estate PlanningLesson 13: Case Study Online Student Question: Hello- Marvin’s executor had to include the value of the custodial account in Marvin’s gross estate. Was that because Marvin was the donor or the custodian? Thanks Matt Instructor Response: Hi Matt, Good question; this can be confusing. Property is generally included in a U.S. citizen’s…

Managing Concentration Wealth Risk — Swap (Exchange) Fund

Good to Know Purpose The goal of a swap fund is to reduce concentration of wealth risk through a unique approach to diversification. We will review this intriguing strategy’s operation, legal structure, tax implications, pros, and cons. Operation A swap fund (after this referred to as “the fund”) is a pool of concentrated positions in…