Blog
CFP® Certificants in the News: Helping Veterans Stay Financially FIT
On Memorial Day, we honored those brave men and women who gave their very blood to protect and defend our freedoms. The sheer number of those who gave it all is humbling. Since our nation’s founding, those servicewomen and servicemen who died while serving is roughly equal to the population of Dallas, Texas – 1.3…
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Taxpayer Penalty – Late Income Tax Payment
Course: Income Tax Planning Lesson 1: Introduction to Taxation Student Question: Hi Dan- I have a question on Review Exercise #1 (below) Review ExerciseShane’s tax return was due on April 15. He filed on April 15 but did not pay his $125 tax bill until May 11. How much, if any, will Shane be penalized?…
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Taxation of Disability Benefits
Paula purchased an individual disability policy offered by her college alumni association to supplement the disability policy provided by her employer. Paula was out on disability for 6 months following a major heart attack. While on disability, Paula received $30,000 from her employer’s disability plan and $20,000 from her individual disability plan. How much of…
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To Roth or Not to Roth, That Is The Question
Conventional wisdom would have us believe that after-tax Roth IRA contributions only make sense if we expect higher taxable income and higher income tax rates in retirement than now. Is conventional wisdom wrong? Not completely but it is woefully simplistic in a complex financial world. Especially for client-facing advisors, the client implications of the Roth…
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Bond Yields
Course: Investment Planning Lesson 9: Equity Securities Student Question: Greetings Dan, I am in the Investment Planning course, on Topic 36. In the sample questions that ask to determine bond yields, how do I determine the value for the end of period payment? For example, refer to Page 36.11, the practice question gives $37.50 as…
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Understanding Medicare Part A
Which of the following individuals currently covered by Medicare Part A will not have any of their expenses covered by Medicare Part A? Evan, who spent one week in hospice care before losing his battle with cancer. Felicia, who was treated by her doctor for strep throat. Greg, who was needed a walker following hip…
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Good to Know: Cryptocurrency Tax Myths Can Hurt You
At one time in the not so distant past, the sky was the limit (where have investors heard that before?) for cryptocurrency. Back then, it seemed like all of the cool kids had cryptocurrency and subsequently, despite ups and downs, its popularity continues. But what is the attraction of this phenomenon? Three potential explanations follow.…
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Impact of Market Risk Premium on Price of Common Stock
Course: Investment Planning Lesson 14: Evaluating Portfolio Performance Student Question: I’ve seen this question come up a couple times, but can’t seem to grasp the answer. “If the Market Risk Premium were to increase, all other things being equal, the value of common stock would…” The answer is “decrease”, but that makes no sense to…
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Homeowner’s Insurance
Frank carries an H0-3 policy with $400,000 of coverage and a $1,000 deductible. It would cost $600,000 to rebuild Frank’s house. How much will his insurance company pay on a $100,000 claim related to a fire that started in Frank’s kitchen? $79,000 $82,333 $83,333 $99,000 CLICK TO REVEAL ANSWER B is the answer. Frank should…
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