Bruce Starks, CPA, CFP® – Page 31

5 Habits of Successful Candidates for CFP® Certification

Good to Know The 5 habits to passing the CFP® exam are not complicated. In fact, they’re quite simple in concept. But here’s the rub, simple is not always easy. For example, here’s the simple equation for losing weight: Calories out > Calories in = Weight loss Yet seven of every ten Americans, the author…

SEP IRA Contribution Limits

Course: Retirement PlanningLesson 5: Leveraging Nonqualified Plans for Small Business and Not-For-Profit Employees and Owners Student Question: Hello , I am having trouble understanding how Shared Coverage is implemented. Could you help me understand with an example? Also, could you explain the Waiver of Premium benefits in simple words. Shared Coverage: “For couples where each…

Speak Now or Forever Hold Your Peace—CFP Board’s Proposed Nondisclosure Sanctions

CFP® Certificants in the News CFP Board’s recent background and disclosure review project resulted in a higher-than-expected number of reviews, investigations, and disciplinary actions taken against CFP® certificants. Solely in the author’s opinion, the scope and depth of the disclosure violations, when coupled with the CFP Board’s strategic goal of utmost public trust, may have…

SEP IRA Contribution Limits

Course: Retirement PlanningLesson 5: Leveraging Nonqualified Plans for Small Business and Not-For-Profit Employees and Owners Student Question: Hello! I am wondering why on this page it says the contribution to a SEP IRA is the lesser of 25% covered compensation or $58,000 (2021), but then it says the combined contribution for SEP IRA and qualified…

What Do Sabre-Toothed Tigers and Investments Losses Have in Common?

Good to Know We introduced the concept of Behavioral Finance in the author’s most recent blog. Specifically, we learned that financial decisions that are rational to our subconscious, primal survival instincts can be breathtakingly irrational to our conscious, objective brains. One of the most perplexing and frustrating examples of this phenomenon is buying high and…

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…

Current Ratio and Primary Residence

Course: Fundamentals of Financial PlanningLesson 3: Personal Financial Statements Student Question: Hi What role does the client’s primary residence play in the current ratio calculation? Is their outstanding mortgage loan amount considered a liability? Thank you Candace Instructor Response: Hi Candace, That’s a great question. The residence is not considered a liquid asset and is excluded from…

Client Psychology

Good to Know Client decisions, including financial ones, may be driven more by psychology than just cold, hard, rational facts. The chart below identifies four powerful psychological influences. Client Psychology—Influences Values Fundamental personal beliefs Attitude The tendency to view an investment positively or negatively based on our beliefs and experience Bias A behavioral tendency Heuristic…

Retirement Plan Required Minimum Distributions

Course: Retirement PlanningLesson 5: Leveraging Nonqualified Plans for Small Business and Not-For-Profit Employees and Owners Student Question: Hi TI’m trying to distinguish when the required minimum distribution amounts are at 72 years old, versus when they are 70 ½. IRA’s are now 72, correct? Is a 401k plan and a 403b 70 1/2? Thank you…

CFP Board Discipline—Learning from Others’ Mistakes

CFP® Certificants in the News This blog will emphasize recent CFP Board disciplinary trends and the avoidable mistakes made by certificants and candidates1 that can lead to unnecessarily severe discipline. Data for this blog is taken from a CFP Board News Release dated June 30, 2021, in which forty disciplinary actions were published. The topics…