Blog

Inflation in the Service Sector

By Bruce Starks, CPA, CFP®

Course: Fundamentals of Financial Planning Lesson 2: Economic Concepts and Consumer Protection Laws Student Question: I was really hoping I could get some sort of expanded reasoning on the below statement if possible, please. I am having a hard time wrapping my head around this for some reason. I tried to Google this and look…

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Practice Question: What is a spread?

By Dan Madden, CFP®

Which of the following combinations correctly describes a spread?  A combination of a short sale and a purchase of a call for the same stock  A combination of buying and selling calls on the same stock with different expiration dates and exercise prices  A combination of a put and a call on the same stock…

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Good to Know: 50,000 Reasons to Care About the Restricted Claim Strategy for Social Security Spousal Benefits

By Bruce Starks, CPA, CFP®

Good to Know This blog builds upon the foundation we established for Spousal Social Security Retirement benefits in our last blog.  To summarize our last blog, the spouse of a covered worker who claims retirement benefits at his or her full retirement age is entitled to a retirement benefit of the greater of their own…

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Maximum Loss on a Short/Long Put

By Bruce Starks, CPA, CFP®

Course: Investment Planning Lesson 15: Fundamentals of Derivatives – Futures and Options Student Question: So, if the max loss on a short put is the strike price less the premium, and the breakeven point is also the strike price minus the premium, does that mean the max loss is breaking even? And does the same…

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Practice Question: Sharpe vs Treynor Index

By Dan Madden, CFP®

Which of the following statements are correct about Fund 1 and 2 given the following information? Fund 1 Fund 2 Return on portfolio 13% 17% Beta .95 1.02 Standard deviation .18 .22 Risk free rate of return is 7% Market return is 15% (1) Fund 1 was more efficient under the Sharpe performance index (2)…

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CFP® Certificants in the News: Rick’s Story

By Bruce Starks, CPA, CFP®

CFP® Certificant in the News People Helping People  It was the way I was raised – you help people out who need help. That is why I got into this business as a financial planner. It is meaningful to me to help people make changes in their lives.” –Rick Fingerman, CFP® When a cancer diagnosis…

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Self-Employment Deduction Calculation

By Dan Madden, CFP®

Course: Income Tax Planning Lesson 7: Arriving at Adjusted Gross Income Student Question: Dan, can you help me with the below question? While I know a self-employed person can reduce AGI by 50%, I still couldn’t seem to come up with an answer that matched any of the choices. QUESTION Scott is a self-employed financial…

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Practice Question: Efficient Market Hypothesis

By Dan Madden, CFP®

Which of the following correctly states an implication of the efficient market hypothesis? Security prices adjust slowly to new information. The strong form asserts that technical analysis can produce superior performance. An investor will earn a risk-adjusted return consistent with the market. It is difficult to produce superior performance in nonfinancial markets. CLICK TO REVEAL…

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Challenging Three Mistaken Beliefs About Spousal Retirement Benefits from Social Security

By Bruce Starks, CPA, CFP®

Good to Know The earth is flat. At least that’s what the mistaken belief was during the middle ages. If you told someone that the earth is flat today, you could get a laugh (or a raised eyebrow doubting your sanity).  Yet, some of those who would laugh at the prospect of a flat earth…

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