Bruce Starks, CPA, CFP® – Page 24

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…

Chapter 13 Bankruptcy Means Test

Course: Estate PlanningLesson 13: Case Study Online Student Question: Hello- 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…

Millenial and Gen Z Clients Need Financial Advice

CFP® Certificants in the News According to a recent CFP Board article, financial opportunity abounds in serving the Millenial and Gen Z generations. For example, the article reveals that “more than half of Americans were Millennials or younger as of July 2020. While the term ‘Millennial’ has been synonymous with ‘young adult’ throughout much of the…

CFP Board’s Disciplinary Actions: Implications for the CFP Board Exam

Good to Know Forewarned is forearmed when studying for the CFP Board exam or choosing a CFP® Certification program. In its latest release of public discipline, CFP Board telegraphs its continued priority for enforcing ethical conduct. Recent disciplinary actions include public censures, suspensions, and revocations. Public Censures Public censures were issued for: Selling securities without…

Maximum Family Benefit

Course: Insurance PlanningLesson 10: Social Security Student Question: Hello- 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…

Ownership of Property in a Trust

Course: Estate PlanningLesson 3: Understanding Trusts and Trust Documents Student Question: Hello- Perhaps a slightly mundane question, but here we go: It had been my understanding that property in a trust was held and owned by the trust itself, as a separate legal entity. However, several times in this course there has been reference to the trustee having…