Blog

Student Question of the Week: Buy-Sell Agreements – Funds for the Deceased’s Family

By Dan Madden, CFP®

Student Question from JohnathonCourse:  Income Tax Planning Student Question: Good Afternoon: I am confused by the answer for the question below. It indicates that one of the correct responses is that the family members of the deceased will receive cash from the life insurance policies. The way I understand the Buy-Sell Agreement process is that the…

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CFP® Practice Question: Calculating Education Expenses

By Keir

THIS QUESTION BROUGHT TO YOU BY: KEIR EDUCATION RESOURCES To learn more about Keir’s CFP Board Exam review materials and classes, select the program you’re registered in below: Practice Question: Tammy wants to set aside a sum of money today that will be sufficient to pay for 4 years of college tuition.  The 4 tuition payments…

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CFP® Practice Question: Calculating Mortgage Payments

By Keir

THIS QUESTION BROUGHT TO YOU BY: KEIR EDUCATION RESOURCES To learn more about Keir’s CFP Board Exam review materials and classes, select the program you’re registered in below: Colin Farrell has a gross annual income of $48,000.  The current interest rate for 30-year mortgages is 7%.  The house that Colin is considering has property taxes of…

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Student Question of the Week: Retirement Protection Benefit Rider Versus Life Insurance

By Dan Madden, CFP®

Student Question from: Margie L.Course:  Insurance Planning Student Question: Why would the Insured purchase a Retirement Protection Benefit Rider instead of a life insurance policy (i.e., 10, 15, 20 or 30-year term)? Instructor Response: Hi Margie!  This is a very good question.  The Retirement Protection Benefit Rider provides something that life insurance doesn’t provide. A Retirement Protection…

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CFP Board Updates: July CFP® Exam Update

By Bruce Starks, CPA, CFP®

Those taking the July CFP® exam are well-served by understanding the new Medicare taxes. The 3.8% Medicare tax on unearned income and the .9% Medicare tax on wages and self-employment income are likely to be tested on the July Exam. The good news is that the Board is expected to provide the adjusted gross income…

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CFP® Practice Question: Financial Planning Process

By Keir

THIS QUESTION BROUGHT TO YOU BY: KEIR EDUCATION RESOURCES To learn more about Keir’s CFP Board Exam review materials and classes, select the program you’re registered in below: During the stage of the financial planning process requiring processing and analyzing information, the financial planner will undertake all the following actions, EXCEPT:  Evaluate current economic conditions relating…

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Student Question of the Week: Correctly Entering a Positive or Negative Cash Flow

By Dan Madden, CFP®

Student Question from: Jessica W.Course:  Fundamentals – Calculator Student Question: I am getting confused on when the PV should be entered as a negative or positive number for these calculator problems. If I enter it the wrong way (negative when needs to be positive) I am getting the incorrect answer. Thanks! Instructor Response: This is…

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CFP® Practice Question: Understanding Portability

By Keir

In giving a talk to a small audience on the topic of estate planning, someone asks you, as a financial planner, to provide some clarifying comments regarding the recent portability of the Applicable Exclusion Amount between spouses. You would be correct in making any of the following comments EXCEPT:  While the 2012 Tax Relief Act…

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Student Question of the Week: Adjusted Basis in Property – An Example

By Dan Madden, CFP®

Student Question from: Susan M.Course:  Income Tax Student Question: On Question 2  – Why are we adding the $2,500 security in as a capital addition when it does not lengthen the life of the building?  By definition, doesn’t it have to extend the life of the asset by at least 1 year? 2. Madden Incorporated…

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