Blog
Tax Saving Strategies
Dan and Karen Burles have 2 children, Coy (age 12, student) and Roger (age 21, student). Dan and Karen own a security equipment sales and installation business, an LLC. Dan and Karen are in the highest income tax bracket. They have a portfolio with $130,000 of municipal bonds (annual income $5,200), $80,000 of corporate bonds…
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Speak Now or Forever Hold Your Peace
CFP® Certificants in the News CFP Board has a deadline of December 3 for you to post comments on it’s proposed revisions to sanction guidelines and fitness standards. A summary of the key proposed changes follow. “A revised inventory of 52 conduct categories that align with the Code and Standards A new list of 25 general aggravating and…
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Unused Premiums in Term Insurance
Course: Insurance PlanningLesson 12: Types of Life Insurance Student Question: Could you help clarify the term “unused premiums” as it relates to term life insurance? I guess I don’t see how you could have a premium not used in term life. Instructor Response: Assume you pay $6,000 in annual prepaid premiums on Jan 1 2020…
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Who is an Investment Advisor?
Which of the following individuals need to register with the SEC under the Investment Advisers Act of 1940? Adam who retired last year from a big brokerage house but he recently started providing services to 12 clients who live in his neighborhood that he met while out golfing. Belinda who writes weekly investment articles for…
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CFP Board Compares Code of Standards to NAIC Model Regulation
CFP® Board Updates The CFP Board has released a guide comparing the National Association of Insurance Commissioners’ (NAIC’s) Suitability in Annuity Transactions Model Regulation (MO-275-1) (Model Regulation) to the CFP Board’s Code of Ethics and Standards of Conduct (Code of Standards). The purpose of the comparison is to help CFP Professionals better understand key differences…
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Crummey Powers
Course: Insurance PlanningLesson 16: The Irrevocable Life Insurance Trust Student Question: Must Crummey powers always be in effect to apply the annual gift tax exclusion in order to transfer to an irrevocable trust? Or is it the case that as long as it was done once, will all transfers be eligible for the annual gift tax exclusion? Instructor…
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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…
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Unconventional Ways to Payoff Student Loans
Good to Know Student loan debt is a financial albatross, voraciously consuming discretionary income and obstructing saving for home down payments, retirement, and more. Take this uber short quiz to see just how challenging the repayment of student loan debt can be. 1. The average student requires years1 to pay off their student loans. Correct.…
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Net Unrealized Appreciation
Course: Retirement PlanningLesson 7: Income Distribution Planning for Qualified Plans Student Question: Regarding net unrealized appreciation, the value of company shares at the time of distribution would be considered the client’s cost basis in that any earnings in excess of that amount could be subject to short-term cap gains if sold within a year of…
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