Bruce Starks, CPA, CFP® – Page 47

The Fiduciary Duty of Loyalty in CFP Board’s New Code of Ethics and Standards of Conduct

CFP® Certificant in the News Here’s the big news for CFP® certificants: Effective October 1, 2019, a fiduciary duty is owed to clients in more circumstances than under the previous CFP Board requirements. Fiduciary duty is the very foundation upon which a great deal of the new Code and Standards rests. A CFP® certificant is…

When Should You Claim Social Security Retirement Benefits?

Good to Know When will our universe stop expanding? What age should you claim Social Security Retirement benefits? For too many of us, these two questions are equally confounding. The author cannot help you with astronomical riddles but can illuminate some of the key factors that should inform your claiming age decision. This is the…

CFP® Certificants in the News: Dangerous Misconceptions About A CFP® Certificant’s Duty to Disclose Material Conflicts of Interest

CFP® Certificant in the News In our last blog, we illuminated CFP Board’s expectation that a certificant either avoid OR disclose and manage material conflicts of interest. That’s a simple instruction, right? Maybe or maybe not. It’s easy to confuse “material conflict of interest” as only sales-related compensation such as upfront commissions, deferred sales charges,…

ADRs and Exchange Rate

Course: Investment Planning Lesson 4: International Equity Securities Student Question: Is it not true that ADRs eliminate currency risk because transactions are done in USD? Lafe Instructor Response: Great question Lafe. ADRs do not guarantee exchange rates; they merely exchange foreign currency to US$ as a convenience to ADR investors. Changes in the exchange rate…

Inflation in the Service Sector

Course: Fundamentals of Financial Planning Lesson 2: Economic Concepts and Consumer Protection Laws Student Question: I was really hoping I could get some sort of expanded reasoning on the below statement if possible, please. I am having a hard time wrapping my head around this for some reason. I tried to Google this and look…

Good to Know: 50,000 Reasons to Care About the Restricted Claim Strategy for Social Security Spousal Benefits

Good to Know This blog builds upon the foundation we established for Spousal Social Security Retirement benefits in our last blog. To summarize our last blog, the spouse of a covered worker who claims retirement benefits at his or her full retirement age is entitled to a retirement benefit of the greater of their own…

Maximum Loss on a Short/Long Put

Course: Investment Planning Lesson 15: Fundamentals of Derivatives – Futures and Options Student Question: So, if the max loss on a short put is the strike price less the premium, and the breakeven point is also the strike price minus the premium, does that mean the max loss is breaking even? And does the same…

CFP® Certificants in the News: Rick’s Story

CFP® Certificant in the News People Helping People It was the way I was raised – you help people out who need help. That is why I got into this business as a financial planner. It is meaningful to me to help people make changes in their lives.” –Rick Fingerman, CFP® When a cancer diagnosis…

Challenging Three Mistaken Beliefs About Spousal Retirement Benefits from Social Security

Good to Know The earth is flat. At least that’s what the mistaken belief was during the middle ages. If you told someone that the earth is flat today, you could get a laugh (or a raised eyebrow doubting your sanity). Yet, some of those who would laugh at the prospect of a flat earth…

Are Gifts Taxable as Income?

Course: Income Tax Planning Lesson 5: Gross Income Exclusions Student Question: In the Gifts & Inheritance section of Income Tax Planning and, how come there is not mention of the $15,000 gift tax limit. All it says is that gifts can be excluded from Gross Income. The amount of gifts excluded from taxable income is limited,…