Impact of Retirement Timeline

Course: Retirement PlanningLesson 1: Using IRAs to Build and Distribute More Retirement Income Student Question: I am confused about this calculation (question below). If I use 20 years instead of 15 years,  my need is now $90,305 from my own savings. The math makes sense but  the answer does not. If I have an additional 5 years to save, shouldn’t the required out-of-pocket cash be less…

Read More

Notifying Clients of Bankruptcy

Course: Fundamentals of Financial PlanningLesson 9: CFP Board Regulatory Requirements Student Question: For sub-section iv of Standard A-10(a), I’m a bit confused as to who that applies to. Does this apply to the certificate holder or the client? Will Instructor Response: Hi William- Thank you for the question. In A(10)a-IV, the CFP® certificant must provide this information to the client. Bruce Student Question: I…

Read More

How to Avoid or Reduce Student Loan Debt

Good to Know The juggernaut of student loan debt is a sad fact of life today for many families. But what if you could avoid or reduce student loan debt for you, your family and your clients? If that sounds unlikely, join us as we dispel three common myths that just might lighten the debt…

Read More

Means Test (Bankruptcy)

Course: Fundamentals of Financial PlanningLesson 4: Managing Cash Flow and Debt Student Question: I’m making sure I understand the means test. If the person is trying to file Section 7 to get rid of debt but the means test shows they can cover their allowable expense, will they be forced to file Section 13 and have to do a repayment plan? It appears the means test is…

Read More

CFP® Certificants in the News: Free CFP Board Practice Exam

CFP Board Exam Registrants – Be sure to take CFP Board’s Practice Exam What could be better for exam preparation than taking a full six-hour, timed practice exam offered by the CFP Board? Receiving this resource free is better! The cost of CFP Board’s full, 170-question practice exam is normally $249. If you registered to…

Read More

Solving for Annual Equivalent Rate

Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: I am confused as to how to get the correct answer for question number 4. Jackie invests her bonus at the beginning of this calendar year. If she earns 7% compounded monthly, what is the annual equivalent rate? Round your answer to two decimal places. I solve for the future value…

Read More

Good to Know: Is The Stretch IRA Dead?

It’s been reported that the Stretch IRA is dead for eternity (or at least until Congress changes the rules again). A Stretch IRA, of course, is the strategy of delaying required minimum distributions from an inherited IRA for decades if not generations. Before the SECURE Act of 2019, the Stretch IRA strategy was highly effective…

Read More

High Deductible Health Plan Deductible and Out-of-Pocket

Course: Income Tax PlanningLesson 7: Arriving at Adjusted Gross Income Student Question: Regarding the minimum deductible and maximum out-of-pocket limits for a high deductible health plan, could you explain more clearly “The minimum deductible must be at least $1,400 (single) or $2,800 (family)“. Does that mean, if single, an individual will pay at least $1,400 per doctor visit/procedure, but no more than the maximum out-of-pocket…

Read More

Good to Know: Act Now to Take Advantage of Disaster Relief Provisions

The property and emotional damage left in the wake of a natural disaster may be compounded by financial stresses. For qualified disaster losses, recent legislation by our federal government could soften the financial impact. First, we’ll define what losses may qualify and then we will summarize key provisions of the legislation. A qualified disaster loss…

Read More