Bruce Starks, CPA, CFP® – Page 51

Surprises from the November 2013 CFP® Certification Exam

Four Surprises to be Aware Of: Psychological Warfare First 10 questions of the 1st exam session were complex to very complex calculations At least one had NO correct answer! Forewarned is forearmed Calculator proficiency is becoming important once again Disproportionate Practice Standards Testing Concepts versus minutiae Extreme focus in one topical area

Student Question of the Week: Net Present Value Calculation

Student Question from Greg CCourse: Fundamentals of Financial Planning Student Question: Hello! It seems to me that the loan proceeds in Question 3 should be positive cash flow entries in year zero, especially if their repayments are negative CFs in Year 5. Why is this not so? Thanks – Greg Question 3: Donald buys small houses…

CFP Board Updates: July CFP® Exam Update

Those taking the July CFP® exam are well-served by understanding the new Medicare taxes. The 3.8% Medicare tax on unearned income and the .9% Medicare tax on wages and self-employment income are likely to be tested on the July Exam. The good news is that the Board is expected to provide the adjusted gross income…

Good to Know: CFP® Practitioner Updates

A financial planner’s work is never done. The administration’s proposed 2014 budget takes aim squarely at the “permanent” estate tax reforms passed in January 2013. The current $5,250,000 estate tax exemption would plummet $1,750,000 to only $3,500,000. The estate tax rate would jump to 45% from the current 40%. But that’s not all. The proposal…

CFP Board Update: Tips for Passing the CFP® Exam

The CFP® Exam continues to evolve from the topic-based rubric of the past. Prior exams were built from a pre-set mix of questions from Fundamentals, Risk Management, Investments, Income Tax, Retirement, and Estate Planning. The CFP® Exam now focuses on eight “Job Task Domains.” Six domains mirror the six steps in the financial planning process while Communications…

Good To Know: Will & Testament

What’s in your Last Will and Testament? Estate planning practice in the last two generations frequently included a Testamentary Trust for benefit of a couple’s children at the death of a parent. This trust was known by a variety of names, including “Bypass Trust”, “Family Trust”, or “Credit Shelter Trust”. Rather than specify the exact…

Good to Know: Tricks and Traps in the New 3.8% Medicare Tax

A CERTIFIED FINANCIAL PLANNERTM can help clients save thousands of dollars by helping clients manage this new tax. Medicare tax has historically been assessed only against earned income. Effective January 1, 2013, a new 3.8% Medicare Tax (the 3.8% tax) will also be levied against unearned income of taxpayers with adjusted gross income (AGI) above thresholds. How…

Winners and Losers in the Fiscal Cliff Deal

“Some gotta win, some gotta lose” is more than a line in an Elvis Presley song – it’s the government’s rendition of the Fiscal Cliff Deal. What exactly is the fiscal cliff? Is the fiscal cliff sheer media hype or a real crisis? The fiscal cliff refers to a perfect storm of tax increases and…