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Tax Credits available by Adjusted Gross Income
Which of the following tax credits, if any, is available to a taxpayer regardless of adjusted gross income (AGI)? Earned Income Tax Credit Credit for the Elderly or Disabled Adoption Expense Credit Foreign Tax Credit CLICK TO REVEAL ANSWER Expand D is the answer. There is no AGI phase-out for the Foreign Tax Credit. It…
The Financial Implications of AI in Financial Planning
Good to Know As artificial intelligence continues to evolve, its impact on the financial planning profession is becoming impossible to ignore. From generative models that support document creation to machine learning algorithms that enhance risk analysis and portfolio construction, AI is not just a trend – it’s becoming a strategic advantage for firms and advisors…
American Depository Receipts
Course: Investment PlanningLesson 4: International Equity Securities Student Question: Hi, On the CFP board practice question (below), the correct answer was “4 only.” How come ADRs don’t eliminate currency risk? Aren’t they purchased and sold with US dollars? American depository receipts (ADRs) are used to Instructor Response: Hi Great question. I can see exactly why you…
Required Minimum Distributions
In 2026, James turns age 73. He owns the following retirement accounts: Traditional IRA: $480,000 Former employer’s 401(k): $320,000 Roth IRA: $150,000 James is retired and does not work for the employer sponsoring the 401(k). What is James’s minimum required distribution obligation for 2026? RMDs must be taken from the traditional IRA and the 401(k), but…
CFP Board’s Public Comment Period: Help Shape the Future of Professional Standards
CFP® Board Updates The CFP Board is again inviting professionals, educators, and the public to weigh in on proposed updates to the Standards of Professional Conduct. This public comment process is a cornerstone of the Board’s commitment to transparency, accountability, and the long‑term strength of the CFP® certification. The current round of feedback centers on…
Accounting for Inflation
Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: Hi, Good afternoon. Can you explain why we didn’t take inflation into consideration for the second calculation in the first problem? Kind regards, Austin Dawn wants to have $25,000 in today’s dollars for a round-the-world cruise when she retires 11 years from now. She…
The Business Cycle
Which phase of the business cycle is typically characterized by declining corporate profits, rising unemployment, tightening credit conditions, and falling consumer confidence? Expansion Peak Contraction Trough CLICK TO REVEAL ANSWER Expand C is the answer.
The Financial Implications of AI in Financial Planning: What CFP® Professionals Should Watch
Good to Know As artificial intelligence (AI) continues to mature and find its way into financial services, CFP® professionals face a pressing question: What does this mean for me and my clients? From predictive analytics to automated workflows, AI is rapidly transforming the landscape of planning, client service, and compliance. But beyond the buzzwords, there…
529 Plan Contribution Limits
Course: Fundamentals of Financial PlanningLesson 6: Educational Savings Techniques Student Question: Hi, Do the limits on 529 plan contributions apply to that specific account, the child, or the contributor? Is it possible for a contributor to have more than one 529 plan, if they’ve reached the limit on one? Instructor Response: Hi Good question. It’s…