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CFP Board hosting Diversity Summit in November 2019
CFP Board Updates The CFP Board Center for Financial Planning will be hosting its second annual Diversity Summit on November 13, 2019, in Washington, D.C. The purpose of the summit is to increase the racial and ethnic diversity of the financial planning profession. Last year, over 300 thought leaders attended the inaugural summit. The agenda…
Multiple Insurance Provider Claim Solutions
Course: Insurance PlanningLesson 2: Fundamentals of Insurance Student Question: I’m having difficulty seeing the difference between pro-rata liability, contribution by equal shares, and primary and excess. Could you explain the review exercise? Review Exercise Three companies insure Josh’s $250,000 house. Insurer A has it insured for 10%, insurer B for 35%, and insurer C for…
Tax Law Sources
Sheila found four different sources to support her position for deducting an expense on her individual income tax return. Which of the following sources provides the least support for her position? Treasury Regulation Private Letter Ruling Revenue Ruling Internal Revenue Code CLICK TO REVEAL ANSWER Expand B is the answer. Private Letter Rulings are only…
What Does Peanut Butter, Jelly, and a 32% Lifetime Social Security Bonus Have in Common?
Good to Know Age 66 Monthly Retirement Check1 $24,000 annual benefit Age 70 Monthly Retirement Check1 $31,680 Annual Benefit Which benefit would you choose? Getting more sounds great but there are two challenges that must be conquered: Challenges #1: Bridging the income gap We called this “making the peanut butter and the jelly come out…
Unmarried Child Retirement Benefits
Course: Income Tax PlanningLesson 10: Social Security Student Question: Does the retired worker have to also be drawing on their Social Security benefits for the unmarried child of the retired worker to receive benefits? For instance, a 63-year-old man has a 13-year-old daughter and he is retired but not drawing his SS benefits yet? Melinda…
Market Anomaly
Which of the following correctly identifies a market anomaly? Stocks with high P/E ratios outperform stocks with low P/E ratios. Stocks of small firms outperform stocks of large firms. Stocks rated “5” by Value Line outperform stocks rated “1”. Stocks followed by financial analysts outperform those that are neglected. CLICK TO REVEAL ANSWER Expand B…
CFP® Certificants in the News: What Do the New Standards of Conduct Mean When Disclosing Conflicts of Interest?
CFP® Certificants in the News True or False? A CFP® certificant is allowed to have a material conflict of interest with a client when providing financial advice. Answer. The statement is conditionally true. A certificant can have a conflict of interest with a client as long as the conflict is fully disclosed, the client agrees…
Time-Weighted vs Dollar-Weighted Return
Course: Investment Planning Lesson 14: Evaluating Portfolio Performance Student Question: For both the Treynor and Sharpe, part of the calculation involves using the average portfolio return (rp). In most examples, the average portfolio return is being given. However, if I need to calculate this in real life, do I use the dollar-weighted return (internal rate…
Intrinsic Value of a Put
Shares of DAGER Corp sell for $25 per share and a client holds a put for DAGER shares with an exercise price of $29. The premium for the put was $3. What is the intrinsic value of the put? $0 $1 $3 $4 CLICK TO REVEAL ANSWER Expand D is the answer. The intrinsic value…