Blog
Wake Up Call for Retirement Savings
Good to Know Let’s frame the challenge faced by far too many Americans. Confidence in a comfortable retirement remains soberingly low. Consider this: Less than half of Americans feel confident about their retirement savings, Nearly one-third of Americans plan to depend solely on Social Security for retirement income, and The average annual Social Security benefit…
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Understanding the Relationship Between Coupon Rates and Duration
Course: Investment PlanningLesson 9: Fixed Income Securities Student Question: There is a question regarding duration that I continue to struggle with. Which of the following are true:1-Lower coupon bonds are more sensitive to interest rates than high coupon bonds.2-There is inverse relationship between bond prices and change in interest rates.3-There is a positive relationship between coupon rates and duration.…
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Identify the Step of the Financial Planning Process
Emily, a CFP® professional, has her first meeting with a new client, David. During the meeting, Emily asks David about his financial goals, current assets, liabilities, and personal circumstances. She also explains the financial planning process, the services she provides, and the fees associated with her work. Which step of the 7-Step Financial Planning Process…
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Top 5 Reasons to Become a CFP® Professional
CFP® Certificants in the News The new year is upon us and while January resolutions are common, the author encourages you to take a deep strategic look at your financial career, especially if you’ve yet to gain CFP® certification. This designation is one of the most recognized and respected credentials in the financial planning space;…
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Determining Correct Years of Growth
Course 1: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: Hello, in the question below, I am a little lost on why it is 9 years for N instead of 10? Could you explain? In Year 1, Harvey assumed he would need the equivalent of $500,000 in Year 1 dollars to retire in…
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Adequate Family Protection
Mark and Jane, both 40 years old, have two young children and are concerned about protecting their family’s financial security in case of unexpected events. Mark earns $100,000 annually, while Jane stays home to care for their children. They currently have $50,000 in savings and a mortgage balance of $300,000. Mark has group term life…
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CFP Board Seeks Public Input on Proposed Updates to Competency Standards
CFP® Board Updates The CFP Board of Directors is inviting public comment on proposed revisions to the Competency Standards for CFP® certification, covering education, experience, examination, and continuing education requirements. These updates aim to keep the standards modern, relevant, and aligned with the evolving financial planning profession. To develop these recommendations, the CFP Board formed…
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Beta as a measure of volatility
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 (volatility)…
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Best tax-efficient strategy
John, a 45-year-old professional, recently inherited $100,000. He has no immediate need for the funds and wants to invest the money to help secure his retirement, which he plans for at age 65. John has moderate risk tolerance and currently contributes the maximum allowable amount to his 401(k) each year. He wants a diversified investment…
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