Blog
How Have You Planned for Healthcare Costs in Retirement?
Good to Know The purpose of this article is to separate fact from fiction and help you motivate clients to plan, starting now, for the inevitable healthcare costs in retirement. We’ll start with good news-Americans are living longer. Average life expectancy increased by almost 10 years during the 50 years ending in 2010, according to…
Read More
Phantom Stock
Course: Investment PlanningLesson 5: Fundamental Equity Analysis Student Question: What is the difference between Stock options and Restricted stock plan or phantom stock? Seems confusing. Instructor Response: Let me know if you have any other questions.
Read More
Calculating Realized Compound Yield on a Bond
An investor bought a bond at par that matures in 15 years. The bond pays an annual coupon of $130 and the reinvestment rate is 9%. What is the realized compound yield of this bond? 11.05% 12.55% 13.00% 14.10% CLICK TO REVEAL ANSWER Expand A is the answer. One would anticipate a realized compound yield…
Read More
CFP Board Announces Dates for 2023 Conference
CFP® Board Updates The 2023 CFP Board Conference will again be a combined conference of CFP Board Registered Programs and the Annual Firms Summit. Through combined sessions as well as firm and registered program specific tracks, conference attendees will have a special opportunity to meet, network, and share knowledge that advances their roles in and…
Read More
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:…
Read More
Defining an Insurance Contract
Olivia is a 25-year old single mother with twin girls who just turned three. Olivia has worked for the last 5 years as an administrative assistant for a local law firm. Olivia’s firm provides her with a basic medical insurance policy and a split definition disability. Which of the following is the biggest risk exposure…
Read More
Taxpayer-Friendly Changes to Retirement Plan Penalties
Good to Know Distributions from Traditional IRAs and employer-sponsored retirement plans such as 401(k) plans are generally subject to a penalty for taking the money out too early (premature distribution) or too late (delayed distribution penalty). Secure Act 2.0 gives welcome penalty relief effective for tax years beginning on or after January 1, 2023. Terminal…
Read More
Current Ratio and Primary Residence
Course: Fundamentals of Financial PlanningLesson 3: Personal Financial Statements Student Question: What role does the client’s primary residence play in the current ratio calculation? Is their outstanding mortgage loan amount considered a liability? Instructor Response: That’s a great question. The residence is not considered a liquid asset and is excluded from “assets” for the current ratio. Only debt…
Read More
Debt Discharged in Chapter 7 Bankruptcy
Chuck lost his job last year when his company moved their factory overseas. Chuck has been unable to find another job and had to file for a Chapter 7 bankruptcy. Which of the following debts can be discharged in the bankruptcy? $10,000 of rent he owes his landlord $20,000 of taxes he owes the IRS…
Read More