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IRA Withdrawals for College Tuition
Lisa, age 50, is considering withdrawing funds from her traditional IRA to pay for her daughter’s college tuition. She is concerned about the tax implications and potential penalties. Which of the following is the best advice to give Lisa? She can withdraw the funds penalty-free because the withdrawal is for higher education expenses, but she…
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Financial Planning Jobs for Career Changers
CFP® Certificants in the News The author is frequently asked how a newly-minted CFP® Certificant finds their first financial planning job. One resource not to be overlooked is the CFP Board’s Guide to Careers in Financial Planning which “provides students, recent graduates and career changers with information on starting and sustaining successful financial planning careers. Developed by the…
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Real Estate Income and IRA Contributions
Course: Retirement PlanningLesson 1: Using IRAs to Build and Distribute More Retirement Income Student Question: This page states that rental income is not included in the definition of earned income. If the client is a professional real estate developer whose income is derived mainly from rental income, would they be able to contribute to an…
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Adequate Retirement Savings
Mary, age 52, has $300,000 in her 401(k) and plans to retire at age 67. She currently contributes $15,000 per year to her 401(k), and her employer matches 50% up to 6% of her salary. Mary’s salary is $100,000, and she expects to earn a 7% annual return on her investments. She wants to ensure…
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Bitcoin ETFs, Pros and Cons
Good to Know How does a retail investor play in the cryptocurrency market? Contrary to popular belief, you do not have to be an accredited investor to participate, you can simply invest in a publicly traded Bitcoin ETF (Exchange-Traded Fund). Such an ETF does not hold Bitcoin but rather tracks the price of Bitcoin. It may…
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Equitable Distributions
Course: Insurance PlanningLesson 17: Business Uses of Life Insurance Student Question: This page explains how the basis for inherited property is affected for common-law states and community property states. How is it affected for equitable distribution states like Florida? Instructor Response: Only marital property is subject to equitable distribution in most common law property states.…
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Saving for College
John and Sarah are married, both 40 years old, and file jointly. They have two children, ages 8 and 12, and are in the 24% federal tax bracket. They want to save for their children’s college education and have asked you for advice. They estimate each child will need $40,000 per year for four years,…
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High Satisfaction Among CFP Professionals
CFP® Board Updates The CFP Board has released findings from a recent survey of CERTIFIED FINANCIAL PLANNER® professionals, showing high satisfaction with their careers and highlighting the positive impact of CFP® certification on their professional lives. These insights come from the CFP Board’s 2024 survey, conducted by Heart + Mind Strategies LLC, which aimed…
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Value of Life Insurance in Buy-Sell Agreements
Course: Insurance PlanningLesson 17: Business Uses of Life Insurance Student Question: Do buy sell agreements accounts for projected growth of the company? Do the life insurance benefits increase over time to account for projected growth, or perhaps can they invest and grow conservatively to keep up with inflation (or COLA on the plan)? Instructor Response:…
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