Blog
Student Question of the Week: The Applicable Exclusion Amount
Student Question from Andy MCourse: Estate Tax Planning Student Question: A correct response to a question in the textbook reads, “If an individual does not use the Unified Credit, it cannot be TRANSFERRED to others for their use.” Although the 2014 Unified Credit of $2,081,800 is not the same as the $5,340,000 Applicable Exclusion Amount,…
Read More
Student Question of the Week: Buy-Sell Agreements
Student Question from Holly SCourse: Income Tax Planning Student Question: Hi Dan. On this page, step 6 of the Stock Redemption steps seems incorrect. My understanding from a prior lesson was that the remaining owner % would be unchanged (stay at 33% in this example) since the corporation bought the deceased owner’s shares. What am…
Read More
Student Question of the Week: Emergency Fund
Student Question from Sophie LCourse: Fundamentals of Financial Planning Student Question: Hi Dan, The adequate amount for an Emergency Fund is 3 months for married clients who both have substantial and reliable income. What is the generally accepted level, if any, for “substantial income”? In Question 3, I considered that $60,000 per spouse was not…
Read More
Bipartisan Solutions for America’s Broken Tax Code
Congressman Dave Camp (R-MI), Chairman of the powerful Ways and Means Committee, recently released draft legislation dubbed The Tax Reform Act of 2014 (TRA 2014). TRA 2014 aims at job growth, a simpler and fairer tax code, and putting more hard-earned income back into the hands of taxpayers. Laudable goals all, but the bigger news…
Read More
Student Question of the Week: Ownership of EE Bonds
Student Question from Pam FCourse: Fundamentals of Financial Planning Student Question: Hello, My question deals with a situation where a grandparent buys EE bonds for a grandchild and both the grandparent’s name and the grandchild’s name are listed as owners on the bonds. In that situation, would the bonds be counted as the child’s asset…
Read More
Student Question of the Week: Entering Negative Numbers
Student: Question from Natalie PCourse: Fundamentals of Financial Planning Student Question: Hello, What is the general rule for using a negative number when entering payments? I am calculating the second problem on this web page and am having trouble determining why I need to use a negative when entering payments. Thanks so much! Charles has…
Read More
Secrets of the Roth IRA
It would be a mistake to consider the Roth IRA (or Designated Roth account) merely for the income tax-free qualified distributions. There’s more, much more, to the Roth and we’ll reveal a condensed thumbnail of just three commonly overlooked benefits. 1) Minimize the 3.8% Net Investment Income Tax (NIIT) Because the NIIT is based in…
Read More
Student Question of the Week: 3.8% Medicare Surtax
Student Question from Leslie GCourse: Fundamentals of Insurance Planning Student Question: Hi Dan, I’m confused on how I would know whether or not to apply the 3.8% Medicare surtax in the following CFP Board released question. How can I know without knowing their AGI? Your client’s federal marginal tax rate is 35% and the state…
Read More
Student Question of the Week: Isn’t an IRA a Qualified Plan?
Student Question: Hi Dan! I think I’m confused on my terminology. I always thought non-qualified plans were: SERP’s, Executive Deferred Comp., 457 Plans, etc. But in Lesson 1 of the Retirement Planning section, I see that IRA’s, SEP’s, 403(b)’s are considered “non-qualified plans.” Am I mixed up about this? Instructor Response: Hi Margie! I hope…
Read More