Blog
Retiree Spending Doesn’t Track Inflation — and Why That Changes the Plan
Good to Know Almost every retirement plan you have ever built rests on one quiet assumption: that a client’s spending will climb year after year, in lockstep with inflation. New research says that assumption isn’t merely conservative – it’s usually wrong, and it may be telling your clients they can’t afford a retirement they can…
Annual Return vs. Compounding
Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: Hi, My question relates to being able to clearly distinguish when the CFP Board exam will require an annual, or other period, for the answer. Question 5(b) asks: “What is the annual rate of return on Investment 2, made 3 years ago for $50,000…
Distribution Rules and Taxation (RMDs)
David, age 74, has a traditional IRA with a December 31, 2025 balance of $1,000,000. His applicable IRS Uniform Lifetime Table distribution period for 2026 is 25.5. Approximately what is David’s required minimum distribution (RMD) for 2026? $25,500 $39,216 $40,000 $49,020 CLICK TO REVEAL ANSWER Expand B is the answer. An RMD is calculated by…
Step-Up in Basis
Susan purchased stock many years ago for $80,000. At her death in 2026, the stock is worth $250,000. Her son inherits the shares and sells them three months later for $255,000. Ignoring any transaction costs, how much taxable capital gain must the son recognize? $5,000 $80,000 $170,000 $175,000 CLICK TO REVEAL ANSWER Expand A is…
Segment Your Clients by Complexity, Not Assets
Good to Know Most firms decide how much service a client receives by looking at one number: assets under management. It’s clean, it’s easy to defend, and it’s often wrong. The client who pays you the most is not necessarily the client who needs the most – and building your calendar around AUM quietly over-serves…
Coinsurance and the Required Insurance Penalty
Course: Insurance PlanningLesson 10: Social Security Student Question: Hi, On this review page, the correct answer for question 2 (below) indicates that insurance will only cover 97% of replacement cost. However, it says in the chapter that as long as the property is insured for more than 80% of replacement cost, the policy will pay…
When a Client’s Judgment Starts to Slip: A Protocol for Diminished Capacity and Exploitation
Good to Know The call you never want is the one where a long-tenured client has already wired $80,000 to a stranger. By the time it reaches you, the planning question is moot. Cognitive decline and elder financial exploitation are advisor problems long before they are ever legal ones – and 2026 has made them…
Maximum Family Benefit
Course: Insurance PlanningLesson 10: Social Security Student Question: Hi, Does the maximum family benefit apply to a husband and wife that are both fully insured if the combined total between the two exceeds the maximum family limit? If I understand correctly, the maximum family limit only applies if there are beneficiaries within the family receiving…
Beta
A client owns a mutual fund with a beta of 1.4. If the overall stock market increases by approximately 10%, which of the following would be the best estimate of the fund’s return based solely on its beta? 4% 10% 14% 24% CLICK TO REVEAL ANSWER Expand C is the answer. Beta measures a portfolio’s…