Blog
Meeting Retirement Plan Objectives
Maria owns a small consulting firm with 12 employees. She wants to establish a retirement plan that is easy to administer, has low costs, and requires minimal annual reporting. She also wants employees to be able to contribute to the plan through salary deferrals. Which of the following options would best meet Maria’s objectives? 401(k)…
Read More
Procedural Rules Update: What Every CFP® Candidate and Certificant Should Know
Good to Know While most headlines in financial planning focus on tax law changes or exam updates, one of the most quietly important developments this year was the CFP Board’s update to its Procedural Rules, which took effect on May 23, 2025. These rules govern how the Board reviews potential ethical violations and fitness issues…
Read More
Interest Rate Risk in a Bond
Course: Investment PlanningLesson 10: Fixed Income Securities Analysis Student Question: I’m not clear why holders of long-term bonds are subject to interest rate risk. If a 20-year bond is purchased at par with a coupon rate of 6.25% ($62.50/year), it seems to me that the investor would still receive $62.50 a year regardless of interest rate changes. What…
Read More
Expansion Phase of the Business Cycle
Which of the following statements best describes the characteristics of the expansion phase of the business cycle? Interest rates are rising, unemployment is low, and consumer spending is increasing. Stock market values are at their lowest, businesses reduce inventories, and inflationary pressures ease. Economic growth slows, corporate profits decline, and the Federal Reserve may lower interest…
Read More
CFP Board’s New OBBBA Planning Resources & Webinar Series
CFP® Board Updates As financial professionals begin navigating the wide-ranging implications of the One Big Beautiful Bill Act (OBBBA), the CFP Board is stepping in with critical support. In an August announcement, the Board previewed the launch of two key resources: a peer-reviewed planning guide and a live webinar series aimed at helping CFP® professionals…
Read More
Skewness versus Kurtosis
Course: Investment PlanningLesson 13: Asset Allocation Student Question: Can you help me understand the difference between Kurtosis and Skewness? I can’t quite piece it together. Instructor Response: Entire books have been written on this topic but the following summary should get the points for you on the CFP® Board exam when these topics are tested. …
Read More
Step 2 of the Financial Planning Process
During an initial client meeting, a CFP® professional gathers details about the client’s current financial situation, including income, assets, liabilities, and expenses. The client also shares that she hopes to retire early, purchase a vacation home, and fund her grandchildren’s college education. Which of the following actions best represents Step 2 of the financial planning…
Read More
CFP Board’s 2025 Public Policy Priorities: What Planners Need to Know
CFP® Board Updates In September 2025, the CFP Board published its official list of six public policy priorities, outlining the organization’s advocacy agenda for the years ahead. These priorities serve as a guide for how the CFP Board plans to influence regulation, legislation, and public perception of the financial planning profession. For CFP® professionals and…
Read More
CPI and Product Quality
Course: Fundamentals of Financial PlanningLesson 2: Economic Concepts and Consumer Protection Laws Student Question: In this thought, it says that CPI only reflects price and does not account for quality of product. However, if the quality diminishes, then the amount needed to meet the same demand increases which then increases the supply needed to meet…
Read More