Blog
Call Features of Bonds
Which of the following statements concerning the call feature of a bond is not correct? If it is freely callable, the issuer may retire the bond at any time. If it is noncallable, the issuer may retire the bond prematurely by repurchasing it. If the bond carries a deferred call, the issuer may not retire…
Good to Know: 4 Dangerous Gaps in Long-Term Disability Coverage
Saying “I have a long-term disability policy” is very much like saying “I have a car.” There’s a big difference between a new Mercedes S-Class and a 40-year old AMC Concord (for any Millennials reading this, the Concord was manufactured just after the extinction of the dinosaurs by a now-defunct automaker). Here’s my point –…
Charitable Organization Vehicle and Liability
Course: Insurance Planning Lesson 5: Personal Auto and Umbrella Liability Policies Student Question: Hi If I have liability insurance and I’m driving a vehicle that belongs to a charity (not my own vehicle) and I get into an accident, then my insurance covers this? Sarah Instructor Response: Hi Sarah- Liability coverage generally follows the car,…
Taxable Income to the Employee
An employee is currently in receipt of taxable income in which of the following circumstances? The employer makes an irrevocable, formally funded promise to pay the employee $300 per month for life, beginning at age 65, provided the employee does not terminate service prior to age 65. The employer makes an unsecured promise to pay…
CFP® Certificants in the News: Sarah’s Story
CFP® Certificant in the News People Helping People “I see how much I can change the lives of Samir and her family by providing them with good financial principles and understanding.” –Sarah Barker As Americans, we can take for granted our basic understanding of how the U.S. financial system operates. For example, we know how…
Calculating Taxpayer Late Payment and Filing Penalties
Course: Income Tax Planning Lesson 1: Introduction to Taxation Student Question: Hi How is the answer to question #5 (below) $810? Jerry’s taxes were due April 15th. He filed his return in October of the same year and paid his $3,000 two months later. Would Jerry be subject to a penalty? How much? No. Jerry…
Appropriate Buy-Sell Agreement
Peter and his father Ryan each own 20% and 80% respectively in the RP Partnership. The partnership generates enough income for both partners to be able to afford the life insurance premiums or for the business to be able to pay the life insurance premiums. Which of the following is correct if Peter and Ryan…
Regulation Best Interest Rule and the CFP Board
On June 5, 2019, The Securities and Exchange commission adopted the Regulation Best Interest Rule, along with other rulemakings and interpretations. These actions were designed to enhance the quality and transparency retail investors’ relationships with advisors. Concurrently, the CFP Board has made changes to the CFP Board Code of Ethics and Standards, which become effective…
Money Purchase vs Cash Balance vs Target Benefit Plans
Course: Retirement Planning Lesson 4: Understanding Types of Qualified Plans Student Question: Hi Bruce- I have studied the material in depth, but am still struggling with the distinction between Money Purchase Plans, Cash Balance Plans, and Target Benefit Plans. I have read all of the notes and think I have it and then get a…