Skip to content

Blog

4 Ways to Afford Long-Term Care Insurance

By Bruce Starks, CPA, CFP®

How can the average American afford Long-Term Care insurance (LTCi)? Before we answer that question, let’s refresh our memory on the strategic use of LTCi. In our previous blog, we identified the following strategies to manage long-term care costs: Self-insure If you can comfortably afford catastrophic (e.g., dementia) long-term care costs of as much as…

Read More

Unused Premium

By Bruce Starks, CPA, CFP®

Course: Insurance PlanningLesson 8: Gift and Estate Valuation Student Question: Could you please clarify for me what the unused premium would be in term life insurance?  I don’t quite understand how you could not use the premium.  Thanks. John Instructor Response: Hey John- Certainly.   A lot of different terms in insurance, to be sure. Assume…

Read More

Accrual Basis Reporting

By Dan Madden, CFP®

Acme Financial Services, Inc., an accrual basis taxpayer, was paid $3,000 in March for tax planning services it performed for Ed Snow. In July, Snow informed Acme that the services were not performed satisfactorily and that he wanted his money back. The dispute was not resolved before the end of the year. Early in the…

Read More

CFP® Professionals and Recession Preparedness

By Bruce Starks, CPA, CFP®

While pundits have predicted a recession that has yet to happen for several years, clients do worry about the impact to their finances if a recession occurs. According to a recent survey by CFP Board, CFP® professionals and other financial advisors make a difference in client confidence when facing recession concerns. According to the survey,…

Read More

Incontestability Period

By Dan Madden, CFP®

Course: Insurance PlanningLesson 2: Fundamentals of Insurance Student Question: For the question below, the answer was #3. Susan died yesterday, exactly ten years after a life insurance policy on her life was issued to her. The policy was in effect at her death. She understated her age on the initial policy application and the underwriter…

Read More

Joint Tenant Transfer

By Dan Madden, CFP®

Reginald Rich owns a parcel of commercial real estate worth $500,000. He has an estate valued at $5 million. He has a son, age 25, by his first marriage and two daughters by his present wife. Mr. Rich would like to see his son receive the real estate but does not want his present wife…

Read More

CFP® Certificants in the News: Are You Committing Financial Planning?

By Bruce Starks, CPA, CFP®

CFP® Certificant in the News A CFP® Certificant is subject to a greater duty, the duty to adhere to the Practice Standards, to clients when providing Financial Planning vs. when providing Financial Advice. As we will see in just a moment, a Certificant may be subject to the Practice Standards based upon what the client…

Read More

Child Care Credit Calculation

By Bruce Starks, CPA, CFP®

Course: Income Tax PlanningLesson 14: Tax Credits, Payments, and Forms Student Question: Could you show me the calculation for Question 3? I calculate 20% of $12,000 , which is $2,400. Emily’s job requires that she put her three children, all under the age of 13, in daycare. She is unmarried and files as Head of…

Read More

Joint Tenant Transfer

By Dan Madden, CFP®

Gary Chapelle owns a duplex with his brother in joint tenancy with right of survivorship. Gary would like to pass his interest in the property to his son Bill and Gary has provided in his will that his interest in the duplex will pass to Bill. Which of the following statements concerning the transfer of…

Read More