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Calculating Gain in an Installment Payment Transaction

By Dan Madden, CFP®

Which of the following individuals would be most likely to 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…

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Remote Proctoring for September 2020 CFP Board Exam

By Bruce Starks, CPA, CFP®

CFP® Certificants in the News You’ve heard it said that “you must be present to win.” That expression was never truer than in passing the CFP Board Exam. However, you no longer have to be present in person at a testing center to take the exam. On July 16, CFP Board issued a press release…

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Bilateral Contracts in Insurance

By Dan Madden, CFP®

Course:  Insurance PlanningLesson 2: Fundamentals of Insurance Student Question: Regarding the Bilateral Contact section, how is an insurance contract not a bilateral contract? If I’m reading correctly, it states that a bilateral contract is one in which both parties have responsibilities.  In an insurance contract, the insurer has to provide insurance and the insured pays the…

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Calculating Gain in an Installment Payment Transaction

By Dan Madden, CFP®

George Sloan sold farmland valued at $200,000 to his son, Frank.  Frank paid $40,000 at closing and signed an installment obligation for the remainder of the purchase price to be paid over ten years at 10% interest on the outstanding balance. If Frank sells the property to a second purchaser for $210,000 cash 20 months…

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Remote Proctoring Option for September 2020 CFP Board Exam

By Dan Madden, CFP®

CFP® Board Updates On July 16th, the CFP Board announced an update to arrangements for the September 2020 examination. For candidates who would need to travel more than 50 miles or have a health concern, so long as they can meet minimum technology requirements, a remote proctoring option will be available. This is in response…

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Present Value versus Payment Function on Calculator

By Bruce Starks, CPA, CFP®

Course:  Fundamentals of Financial PlanningLesson 7: Educational Aid and Funding Calculation Student Question: In Step 5: solving for LUMP SUM needed today… Step 5: Determine funding actually needed Lump sum needed TODAY to fund the full cost of college education. How come we are solving for PV and not PMT? Thanks. Kelly Instructor Response: Hi Kelly, If any…

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Appropriate Valuation Method

By Dan Madden, CFP®

Sam McBuck has an estate of $10 million and would like to leave it to his nephews. Sam assumes he will live for at least 5 more years. The property in Sam’s estate currently includes the following assets: An apartment building in downtown New York that Sam owns with three partners, each of whom wants…

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Beware the Custodial Account for College Savings

By Bruce Starks, CPA, CFP®

Good to Know Custodial accounts are popular because they are easy to establish. A bank or brokerage firm can help your client fill out a simple form and have the account established almost immediately. Clients are also attracted to the contribution limits – there are no limits! Before going farther, let us set a quick…

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Employee Incurred Expenses and the Itemized Deduction

By Bruce Starks, CPA, CFP®

Course:  Income Tax PlanningLesson 6: Employer-Sponsored Total Income Exclusions Student Question: Hi- Could you explain the Business Deduction for work related expense in very simple language.  I don’t quite follow whether it’s a deduction or not. Thanks. M Instructor Response: Hello Kyle, If any employee-incurred expenses related to her employer’s business, such as gifts to customers, for example, those…

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