Blog
Retirement—Hope Is Not A Plan
Good to Know Just two of every ten workers are very confident about having a financially comfortable retirement, according to the EBRI® 34th Annual Retirement Confidence Survey. What is driving this lack of confidence? Factors include inflation fears, Social Security concerns, and a recession threat. Inflation-More than 8 of every 10 workers believe that just paying…
Read More
Value of Life Insurance in Buy-Sell Agreements
Course: Insurance PlanningLesson 17: Business Uses of Life Insurance Student Question: Do buy sell agreements accounts for projected growth of the company? Do the life insurance benefits increase over time to account for projected growth, or perhaps can they invest and grow conservatively to keep up with inflation (or COLA on the plan)? Instructor Response:…
Read More
CFP® Practice Question: Gift and Generation Skipping Transfer Taxes
Austin, an unmarried man, has one son named Perry. Perry has one daughter named Kayla. Austin made no prior year taxable gifts but made two taxable gifts in the current year, including: A taxable gift to Perry in the amount of the current year basic exclusion amount on January 1 and A taxable gift to…
Read More
Will Artificial Intelligence Make Human-Based Financial Advice Obsolete?
CFP® Certificants in the News CFP Board tackles this article’s titular question with its recent article ominously titled “Yes, AI IS Going To Take Your Job.” That provocative title may be a bit dramatic but it is a wakeup call for financial advisors and planners. We’re at a crossroads but not a dead end-CFP Board…
Read More
The Fed’s Monetary Policy Tools
Course: Investment PlanningLesson 2: Tools of the Fed Student Question: How does the Fed impact monetary policy by using “Interest on Reserve Balances?” Instructor Response: One of The Federal Reserve’s (FED’s) core functions is to balance the health of the American economy between inflation and recession. The FED uses Interest on Reserve Balances (IORB) as…
Read More
Basis on Sale of Gifted Stock
Tom gave his son, David, a birthday present of Big M stock with a fair market value of $50,000. Tom paid gift tax of $9,700 as Tom had previously given David earlier this year a cash gift. Tom’s adjusted basis in the stock on the date of the gift was $30,000. Three months later, David…
Read More
Is Your Client Using the Wrong Buy-Sell Agreement?
Good to Know Are you looking for new ways to stay in contact with your closely held business owner clients and showcase your financial planning prowess? A recent Supreme Court decision in Connelly v. United States gives savvy financial advisors and planners an opportunity to do just that. But before getting to the court decision, we’ll…
Read More
Interest on a second home
Course: Income Tax PlanningLesson 8: Arriving at Taxable Income Student Question: Is my understanding correct that a taxpayer can deduct interest on a 2nd home under Home Acquisition Debt up to $750K, and also deduct interest on the primary residence under Home Equity Debt up to $750K? So, each home is considered separately and each…
Read More
Characteristics of a Will
Which of the following statements concerning a Will are correct? (1) A will can be altered, amended, or completely rewritten at any time before a person’s death. (2) A will cannot be rewritten but can be amended at any time by a codicil. (3) A will must be signed by the maker and usually must…
Read More