Blog
Kiddie Tax
Jennifer and Mark have a 14-year-old son, Ryan, who earned $500 in wages from a part-time job and received $3,000 in interest income from an investment account set up by his grandparents. How will Ryan’s income be taxed under the “kiddie tax” rules for 2025? The entire $3,500 will be taxed at Ryan’s tax rate.…
Read More
CFP Board Records Milestone Year in 2024
CFP® Board Updates The CFP Board achieved record-breaking milestones in 2024, with the number of CFP® professionals reaching 103,093, a 4.3% increase from 2023. Additionally, 10,437 candidates sat for the CFP® exam, the highest in the Board’s history. These accomplishments align with the success of CFP Board’s public awareness campaign, which has significantly enhanced recognition…
Read More
Beta as a Measure of Systematic Risk
Course 3: Investment PlanningLesson 1: Key Principles of Investing Student Question: I am having a difficult time conceptualizing Beta as a measure of only systematic risk AND as a measure of volatility relative to the broader market. By way of illustration. Assume an individual equity has wild swings in value over a one year period…
Read More
Identifying Steps in the Financial Planning Process
Lisa, a CFP® professional, is working with her client, Tom. After gathering all necessary information about Tom’s financial situation, including his income, expenses, assets, liabilities, and risk tolerance, Lisa analyzes the data. She identifies that Tom’s current investment allocation is not aligned with his long-term retirement goals and recommends reallocating his portfolio to better match…
Read More
Counting Your Eggs Before They Hatch
Good to Know The Tax Cuts and Jobs Act (TCJA) of 2017 introduced significant tax reductions for individuals and businesses, with many provisions set to expire at the end of 2025. The likelihood of these provisions expiring depends on legislative actions taken before that deadline. In this article we’ll review: The legislative environment, Key influences,…
Read More
Estate Planning Priority
Sarah, a CFP® professional, is working with her client, Mark, who wants to ensure that his assets are distributed efficiently to his heirs and that his minor children are cared for in the event of his death. During their discussion, Sarah learns that Mark has a will but no other estate planning documents. Mark also…
Read More
Don’t Miss These CFP Board Developments
CFP® Certificants in the News Just in case you missed these announcements, be aware that the CFP Board recently announced two significant developments. The Clock is Ticking: Comment Period Ending – Proposed Revisions to Competency Standards On December 17, 2024, the CFP Board’s Board of Directors sought public comment on proposed changes to the Competency…
Read More
Revocable versus Grantor Trusts
Course: Estate PlanningLesson 9: Income Taxation of Trusts and Estates Student Question: Can you refer me to a comparison (or just write a few notes) on how a grantor trust differs from a revocable trust and how a non-grantor trust differs from an irrevocable trust? They seem synonymous respectively to each other. Thank you! Instructor…
Read More
Ethics and Professional Responsibility
Janet, a CFP® professional, is meeting with a prospective client, Thomas. During their conversation, Thomas mentions that he is looking for a financial advisor who can help him invest in sustainable and socially responsible funds. Janet does not have significant experience or expertise in sustainable investing but is eager to take on Thomas as a…
Read More