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IRS GIVES WIN TO INVESTMENT ADVISORY FEES IN A NONQUALIFIED ANNUITY
Good to Know We will take a very short break from our Social Security blog series with late-breaking news – potentially good news for advisors who charge only investment advisory fees. First, we’ll frame the issue then present the potentially good news. But before we frame the issue, let’s unpack the word “nonqualified” as it…
Recognizing Income – Cash Basis
Course: Income Tax Planning Lesson 3: Accounting of Gross Income Student Question: The first example in “Recognizing Income” about not recognizing the check payment until it can actually be cashed seems contradictory to the CFP Board question below which states that income is included when a check is RECEIVED. Any clarification you can provide here? Thanks. Jay Coursework…
Interest Rate Risk
Which of the following correctly describes interest rate risk? Interest payments will have less purchasing power in the future. Bond prices decrease as interest rates increase. Interest payments may not be paid if the issuer goes bankrupt. The bond may be called because interest rates have decreased. CLICK TO REVEAL ANSWER Expand B is the…
The Fiduciary Duty of Loyalty in CFP Board’s New Code of Ethics and Standards of Conduct
CFP® Certificant in the News Here’s the big news for CFP® certificants: Effective October 1, 2019, a fiduciary duty is owed to clients in more circumstances than under the previous CFP Board requirements. Fiduciary duty is the very foundation upon which a great deal of the new Code and Standards rests. A CFP® certificant is…
Maxing Out Defined Benefit Plans
Course: Retirement Planning Lesson 8: Fitting Deferred Compensation into the Retirement Plan Student Question: Curious as to why the net result is $525,000.00 and not $500,000.00. Wouldn’t 100% of her current year compensation be $500,000.00? Is it just that the Board decided to max out the limits of the DBP and the NQEBP so that’s…
Odd Lot Theory
Which of the following tells the investor that the Odd Lot Theory indicates a bull market? The ratio of odd lot purchases to sales is constant. Odd lot sales exceed odd lot purchases. The ratio of odd lot purchases to sales reaches the resistance point. Odd lot purchases exceed odd lot sales. CLICK TO REVEAL…
When Should You Claim Social Security Retirement Benefits?
Good to Know When will our universe stop expanding? What age should you claim Social Security Retirement benefits? For too many of us, these two questions are equally confounding. The author cannot help you with astronomical riddles but can illuminate some of the key factors that should inform your claiming age decision. This is the…
SIPC Reimbursement
Course: Investment Planning Lesson 2: Securities Markets and the Fed Student Question: The coursework states that the SIPC will pay claims up to $500,000, but in Example 2, they only gave Bruce $350,000. Why is that? Thanks. Wesley Example 2 Bruce had $400,000 in cash and $100,000 in securities in his brokerage account. His broker/dealer…
CFP® Certificants in the News: Dangerous Misconceptions About A CFP® Certificant’s Duty to Disclose Material Conflicts of Interest
CFP® Certificant in the News In our last blog, we illuminated CFP Board’s expectation that a certificant either avoid OR disclose and manage material conflicts of interest. That’s a simple instruction, right? Maybe or maybe not. It’s easy to confuse “material conflict of interest” as only sales-related compensation such as upfront commissions, deferred sales charges,…