Bruce Starks, CPA, CFP® – Page 40

COVID 19 and the Need for Incapacity Planning

Good to Know The same incapacity management techniques that address mental illness issues can also be effective when your client is temporarily incapacitated due to physical illnesses such as COVID-19. Here is a quick review of these documents and how they work. Power of Attorney (POA) This legal document empowers another person to act on…

Begin versus End Mode Calculations

Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: If it would be at all possible, can you provide me with a practical working explanation of when to use begin mode key and the end mode key in solving these calculations? Thank you for your attention Eric Instructor Response: Hi Eric, Great question. Ultimately, we look to the fact pattern of the question,…

Conversion of Personal Use Property

Course: Income Tax PlanningLesson 15: Property Transactions Student Question: Running with the last example on this page where the sale is between the basis for a gain or a loss, is there ever a situation where factoring in depreciation would result in either a gain or loss? Example Kevin’s home has been declining in value, so he has decided to move and rent…

Good to Know: Social Security: Another COVID-19 Casualty?

Good to Know What do you think of first when someone says, “victim of COVID-19?” Most of us think of medically vulnerable fellow citizens or business failures. But what about Social Security’s health? Before answering that question, let’s recognize a few fundamental forces behind Social Security’s financial challenges: Social Security become law in 1935 and,…

FAQs – Remaining CFP Board Exams in 2020

CFP Board Exam FAQs The questions surrounding CFP Board’s response to COVID-19 number in the dozens if not hundreds. In this blog, we’ll identify key FAQs on the subject. Is there an additional fee to register for the September Exam? Candidates who were registered to take the exam in July will be able to reschedule…

Tax-Deferred versus Tax-Free

Course: Fundamentals of Financial PlanningLesson 6: Educational Savings Techniques Student Question: Hello Dan, I’m working through some of the educational savings vehicles and I see the term tax-deferred and tax-free. But what does each mean? Investment grows tax-deferred. I understand deferred is to pay later, right? My understanding is that it means one does not pay taxes for investment growth. So why is…

SEC Regulation Best Interest – Who is Protected and When?

Good to Know The Security and Exchange Commission’s Regulation Best Interest (Reg BI) is aimed squarely at protecting the best interests of retail investors. A common issue that arises is exactly when Reg BI applies. The short answer is that Reg BI applies when a retail customer receives and subsequently uses a recommendation from a…

Custodial Accounts and Tax Deferral

Course: Fundamentals of Financial PlanningLesson 6: Educational Savings Techniques Student Question: Hi, I am referencing the “Key Information – Coordination with Tax Credits” section. When it says “custodial accounts do not provide income tax deferral,” is this to say that a donor will earn and pay income tax on money received that is then gifted to the beneficiary?Assuming the gift is less than $15,000 annually, there…

Risk Premium versus Intrinsic Value

Course: Investment PlanningLesson 5: Fundamental Equity Analysis Student Question: Hello Bruce, The first Review Exercise page in Lesson 5 – is Intrinsic Value the same as Risk Premium? Is that why we’re solving for P0 and not V (which is given)? The formula provided in the explanation confuses me. (question and answer from Review Exercise below) Review Exercise Question: Given the following information, what…

The Unlikely Banker – IRS CARES for Business Owners

Good to Know THE TREASURY DEPARTMENT PROVIDES MORE THAN SBA LOANS FOR BUSINESS WORKING CAPITAL SBA loans and the Paycheck Protection Program dominated the business headlines over the last few months. But several less-heralded provisions of the CARES Act go beyond recent headlines to shore up cash flows of struggling businesses, too. How? Liberalization of…