Bruce Starks, CPA, CFP® – Page 48

Good to Know: Who Needs Long-Term Care Insurance?

What are the odds you’ll need long-term care? Long-term care is a distinct possibility for millions of Americans. Today’s baby-boomers and their parents are living longer, but longer life expectancies are often accompanied by a need for extended long-term care. According to the American Society on Aging, 70% of Americans 65 and older will need…

In the Money versus Out of the Money

Course: Investment Planning Lesson 3: Equity Securities Student Question: Hi Bruce, In reviewing the tax implications of derivatives, I had a question about the terms in & out of money. Is premium price factored into whether something is in or out of money? Or is it strictly referring to market and strike price? Thanks, Instructor…

Good to Know: 4 Dangerous Gaps in Long-Term Disability Coverage

Saying “I have a long-term disability policy” is very much like saying “I have a car.” There’s a big difference between a new Mercedes S-Class and a 40-year old AMC Concord (for any Millennials reading this, the Concord was manufactured just after the extinction of the dinosaurs by a now-defunct automaker). Here’s my point –…

Charitable Organization Vehicle and Liability

Course: Insurance Planning Lesson 5: Personal Auto and Umbrella Liability Policies Student Question: Hi If I have liability insurance and I’m driving a vehicle that belongs to a charity (not my own vehicle) and I get into an accident, then my insurance covers this? Sarah Instructor Response: Hi Sarah- Liability coverage generally follows the car,…

CFP® Certificants in the News: Sarah’s Story

CFP® Certificant in the News People Helping People “I see how much I can change the lives of Samir and her family by providing them with good financial principles and understanding.” –Sarah Barker As Americans, we can take for granted our basic understanding of how the U.S. financial system operates. For example, we know how…

Calculating Taxpayer Late Payment and Filing Penalties

Course: Income Tax Planning Lesson 1: Introduction to Taxation Student Question: Hi How is the answer to question #5 (below) $810? Jerry’s taxes were due April 15th. He filed his return in October of the same year and paid his $3,000 two months later. Would Jerry be subject to a penalty? How much? No. Jerry…

Money Purchase vs Cash Balance vs Target Benefit Plans

Course: Retirement Planning Lesson 4: Understanding Types of Qualified Plans Student Question: Hi Bruce- I have studied the material in depth, but am still struggling with the distinction between Money Purchase Plans, Cash Balance Plans, and Target Benefit Plans. I have read all of the notes and think I have it and then get a…

Does Car Insurance Follow the Car or the Driver?

Does Personal Auto Policy (PAP) insurance follow the car or the driver? The answer is… it depends! Let’s face it. This is can be a confusing topic. It’s no wonder there’s confusion – an online search of this simple question returns dramatically different opinions; some are correct, some partially correct, and some are incorrect. But even the…

CFP® Certificants in the News: Helping Veterans Stay Financially FIT

On Memorial Day, we honored those brave men and women who gave their very blood to protect and defend our freedoms. The sheer number of those who gave it all is humbling. Since our nation’s founding, those servicewomen and servicemen who died while serving is roughly equal to the population of Dallas, Texas – 1.3…

To Roth or Not to Roth, That Is The Question

Conventional wisdom would have us believe that after-tax Roth IRA contributions only make sense if we expect higher taxable income and higher income tax rates in retirement than now. Is conventional wisdom wrong? Not completely but it is woefully simplistic in a complex financial world. Especially for client-facing advisors, the client implications of the Roth…