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Investments Held by Exchange Traded Funds

By Bruce Starks, CPA, CFP®

Course: Insurance PlanningLesson 19: Immediate Annuities – A Tax-Advantaged Income Planning Tool Student Question: Hi- The text on this page says the annuities don’t hold mutual funds or ETFs.  What are they holding to provide an S&P “type return?” The text goes on to discuss components that sound a lot like ETFs (mid value, large…

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Ratio Percentage Test

By Dan Madden, CFP®

Which of the following statements concerning SEP and Keogh plans is not correct? A SEP must meet fewer reporting requirements than are imposed on a Keogh plan. A SEP is not considered by the IRS to be a qualified plan as is a Keogh plan. A SEP is similar to a defined-contribution plan; a Keogh…

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Not All Christmas Presents are Welcome: Four Potential Tax Changes to Monitor

By Bruce Starks, CPA, CFP®

Good to Know Let’s face it-it may be easier to handicap who’ll win the Presidency in 2024 than to forecast how, or even if, your taxes will change over the next few months. This blog will point out a select few areas that could change your tax landscape dramatically, including: Paying more capital gains tax,…

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Real Estate Income and IRA Contributions

By Bruce Starks, CPA, CFP®

Course: Retirement PlanningLesson 1: Using IRAs to Build and Distribute More Retirement Income Student Question: Good morning! This page states that rental income is not included in the definition of earned income.  If the client is a professional real estate developer whose income is derived mainly from rental income, would they be able to contribute…

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Black-Scholes Option Valuation Model

By Dan Madden, CFP®

Frank carries an H0-3 policy with $400,000 of coverage and a $1,000 deductible. It would cost $600,000 to rebuild Frank’s house. How much will his insurance company pay on a $100,000 claim related to a fire that started in Frank’s kitchen? $79,000 $82,333 $83,333 $99,000 CLICK TO REVEAL ANSWER Expand B is the answer. Frank…

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Recent Surveys Indicate High Satisfaction Among CFP® Professionals

By Dan Madden, CFP®

CFP® Board Updates A recent survey of CFP® Professionals indicates continued high satisfaction with their career choice as a financial planner.   In addition, the survey revealed CFP® Professionals continue to see positive impact in their career from having achieved the certification. A few of the key findings, which highlight just a small portion of the…

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Distributable Net Income Application

By Bruce Starks, CPA, CFP®

Course: Estate PlanningLesson 9: Income Taxation of Trusts and Estates Student Question: Hi Bruce When a Trust has an income accumulation year, must the Trust pay taxes on that accumulation of DNI in the year of accumulation? If so, why do that – why would a Trust hold income at the confiscatory Trust income tax…

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Underinsured Dwelling

By Dan Madden, CFP®

Frank carries an H0-3 policy with $400,000 of coverage and a $1,000 deductible. It would cost $600,000 to rebuild Frank’s house. How much will his insurance company pay on a $100,000 claim related to a fire that started in Frank’s kitchen? $79,000 $82,333 $83,333 $99,000 CLICK TO REVEAL ANSWER Expand B is the answer. Frank…

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How to Correct a Faulty Claiming Age Decision

By Bruce Starks, CPA, CFP®

Good to Know You may find yourself advising clients and prospects that were either misinformed or unaware of the consequences of claiming Social Security benefits too early. A potential, if not common, client angst is the realization that age 62 was NOT a wise claiming age decision. A client could face three unwelcome results from…

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