Blog

Notifying Clients of Bankruptcy

By Bruce Starks, CPA, CFP®

Course: Fundamentals of Financial PlanningLesson 9: CFP Board Regulatory Requirements Student Question: For sub-section iv of Standard A-10(a), I’m a bit confused as to who that applies to. Does this apply to the certificate holder or the client? Will Instructor Response: Hi William- Thank you for the question. In A(10)a-IV, the CFP® certificant must provide this information to the client. Bruce Student Question: I…

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Alimony and Gross Income

By Dan Madden, CFP®

Cindy received the following payments from her ex-husband Jim under the terms of the divorce decree: $10,000 of back alimony payments from last year $20,000 of back child support payments from last year $30,000 of alimony payments for this year $40,000 of child support payments for this year How much does Cindy have to include…

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How to Avoid or Reduce Student Loan Debt

By Bruce Starks, CPA, CFP®

Good to Know The juggernaut of student loan debt is a sad fact of life today for many families. But what if you could avoid or reduce student loan debt for you, your family and your clients? If that sounds unlikely, join us as we dispel three common myths that just might lighten the debt…

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Means Test (Bankruptcy)

By Bruce Starks, CPA, CFP®

Course: Fundamentals of Financial PlanningLesson 4: Managing Cash Flow and Debt Student Question: I’m making sure I understand the means test. If the person is trying to file Section 7 to get rid of debt but the means test shows they can cover their allowable expense, will they be forced to file Section 13 and have to do a repayment plan? It appears the means test is…

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Carryover of Losses

By Dan Madden, CFP®

The following information has been provided by a client for income tax purposes: $45,000 salary from an S Corporation where the client is a vice-president $3,500 loss from the S Corporation $1,500 loss from a 3% interest in a limited partnership $1,200 loss from a 10% interest in Middletown Partnership in which the client does…

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CFP® Certificants in the News: Free CFP Board Practice Exam

By Bruce Starks, CPA, CFP®

CFP Board Exam Registrants – Be sure to take CFP Board’s Practice Exam What could be better for exam preparation than taking a full six-hour, timed practice exam offered by the CFP Board? Receiving this resource free is better! The cost of CFP Board’s full, 170-question practice exam is normally $249. If you registered to…

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Solving for Annual Equivalent Rate

By Bruce Starks, CPA, CFP®

Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: I am confused as to how to get the correct answer for question number 4. Jackie invests her bonus at the beginning of this calendar year. If she earns 7% compounded monthly, what is the annual equivalent rate? Round your answer to two decimal places. I solve for the future value…

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Tax Saving Strategies

By Dan Madden, CFP®

Dan and Karen Burles have 2 children, Coy (age 12, student) and Roger (age 21, student). Dan and Karen own a security equipment sales and installation business – an LLC. Dan and Karen are in the highest income tax bracket. They have a portfolio with $130,000 of municipal bonds (annual income $5,200), $80,000 of corporate…

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Good to Know: Is The Stretch IRA Dead?

By Bruce Starks, CPA, CFP®

It’s been reported that the Stretch IRA is dead for eternity (or at least until Congress changes the rules again). A Stretch IRA, of course, is the strategy of delaying required minimum distributions from an inherited IRA for decades if not generations. Before the SECURE Act of 2019, the Stretch IRA strategy was highly effective…

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