Bruce Starks, CPA, CFP® – Page 28

Guide to Careers in Financial Planning

CFP® Certificants in the News CFP Board’s CENTER FOR FINANCIAL PLANNING publishes an intriguing series of insights into career paths for the new certificant, career changer, and even experienced certificants. These insights can be found in the GUIDE TO CAREERS IN FINANCIAL PLANNING. The GUIDE identifies over six career paths, helps clarify the types of…

Investments Held by Exchange Traded Funds

Course: Insurance PlanningLesson 19: Immediate Annuities – A Tax-Advantaged Income Planning Tool Student Question: Hi- The text on this page says the annuities don’t hold mutual funds or ETFs. What are they holding to provide an S&P “type return?” The text goes on to discuss components that sound a lot like ETFs (mid value, large…

Not All Christmas Presents are Welcome: Four Potential Tax Changes to Monitor

Good to Know Let’s face it—it may be easier to handicap who’ll win the Presidency in 2024 than to forecast how, or even if, your taxes will change over the next few months. This blog will point out a select few areas that could change your tax landscape dramatically, including: Paying more capital gains tax,…

Real Estate Income and IRA Contributions

Course: Retirement PlanningLesson 1: Using IRAs to Build and Distribute More Retirement Income Student Question: Good morning! This page states that rental income is not included in the definition of earned income. If the client is a professional real estate developer whose income is derived mainly from rental income, would they be able to contribute…

Distributable Net Income Application

Course: Estate PlanningLesson 9: Income Taxation of Trusts and Estates Student Question: Hi Bruce When a Trust has an income accumulation year, must the Trust pay taxes on that accumulation of DNI in the year of accumulation? If so, why do that – why would a Trust hold income at the confiscatory Trust income tax…

How to Correct a Faulty Claiming Age Decision

Good to Know You may find yourself advising clients and prospects that were either misinformed or unaware of the consequences of claiming Social Security benefits too early. A potential, if not common, client angst is the realization that age 62 was NOT a wise claiming age decision. A client could face three unwelcome results from…

Loan Impact on Basis in a Modified Endowment Contract

Course: Insurance PlanningLesson 15: Income Taxation of Life Insurance Student Question: Hello, Can you help me better understand the difference between policy basis in a normal policy and policy basis on a modified endowment contract. From the Coursework: But for MEC purposes, the basis is increased by any portion of loans that were considered taxable…

CFP Board Imposes Public Sanctions On 22 Individuals

CFP® Certificants in the News This blog’s title confirms that it’s not always good to have one’s name in the news. According to CFP Board’s November 22, 2021 release, “Certified Financial Board of Standards, Inc. (CFP Board) announced today public sanctions against 22 current or former CFP® professionals or candidates for CFP® certification, effective immediately…

The 2021 Crystal Ball: Year-End Tax Strategies for Individuals

Good to Know Year-end tax planning for 2021 depends in large part on proposed legislation, such as the “Build Back Better Act.” Without a reliable crystal ball, the ultimate passage of the Act and other legislation is hard to handicap. However, the passage of the Act could hit many upper-middle-income and high-income taxpayers squarely in…

Qualified Plans – Parties in Interest

Course: Retirement PlanningLesson 6: Matching Business Owner Needs to the Right Qualified Plan Student Question: How is “connection to the plan” defined in regards to a “party in interest” when talking about qualified plans? Would a plan participant count as someone with a connection to the plan? From the Coursework: A party in interest is…