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Calculating Rate of Return

By Dan Madden, CFP®

Course: Investment PlanningLesson 1: Key Principles of Investing Student Question: Hey Dan, Hope you are doing well. Can you help solve a practice question?  I looked through the textbook and my notes and just couldn’t wrap my brain about how to solve the problem below.  The confusing part to me is that the fund was not…

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Solving for Mortgage Payment

By Dan Madden, CFP®

Shannon refinanced her home mortgage to a 30-year fixed mortgage with biweekly payments. How much is each payment if she owed $350,000 at the time of the refinance and the interest rate is 4.5%? $818 $881 $1,012 $1,229 CLICK TO REVEAL ANSWER Expand A is the answer. Shannon pays her mortgage every two weeks which…

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TOP 4 FINANCIAL CONCERNS OF THE PANDEMIC

By Bruce Starks, CPA, CFP®

CFP® Certificants in the News More than five of every ten Americans are experiencing “high” to “very high” financial stress levels as a result of the pandemic according to a survey commissioned by CFP Board and released December 3, 2020. Admittedly, that is hardly a seismic revelation. But if we dig below the headlines, you…

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Passing Property Via Will

By Bruce Starks, CPA, CFP®

Course: Investment PlanningLesson 14: Evaluation Portfolio Performance Student Question: Hello – I’m a little confused about the example (below) discussing an heirloom of only sentimental value. Why would this be titled at all for a will, especially since an earlier lecture said items of no value would pass through the will as the situation does…

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Impact on Net Worth

By Dan Madden, CFP®

Last year, David paid down his motorcycle loan by $4,000 and his school loan by $8,000. He was also able to add $11,000 to his IRA from his checking account. David’s investment account grew by $15,000 during the year. How much did David’s net worth increase for the year? $12,000 $23,000 $27,000 $38,000 CLICK TO…

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The Georgia Senate Races and Personal Tax Planning

By Bruce Starks, CPA, CFP®

Good to Know- Income Tax Top Marginal Income Tax Rates Current Status: The maximum marginal income tax rate is 37% and, for example, would apply to a single taxpayer with taxable income greater than $523,600 (2021, as indexed under current law). Potential 2021 Change: The top marginal rate could increase to 39.6% and would apply…

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Information Ratio

By Bruce Starks, CPA, CFP®

Course: Investment PlanningLesson 14: Evaluation Portfolio Performance Student Question: Hello, In calculating Information Ratio, why do we need the denominator to be Standard Deviation of the difference in portfolio and index returns?  This is unlike the Sharpe Ratio, where the denominator is Standard Deviation of the Portfolio. Doesn’t the Standard Deviation of the Portfolio indicate…

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Section 303 Redemption

By Dan Madden, CFP®

A Sec. 303 Redemption is most likely appropriate for which of the following estates? At Fred’s death, Fred owned all of his assets, including the stock of a closely-held corporation in joint tenancy WROS with his wife. Before Gloria’s death, she transferred all of her assets, including the stock, in a closely-held corporation to an…

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CFP Board Registered Programs Conference

By Dan Madden, CFP®

CFP Board Updates The CFP Board Registered Programs Conference took place December 15-16, 2020. The conference is an annual gathering of financial planning educators, thought leaders, financial service professionals, and the CFP Board. For registered programs, it provides an opportunity to network with other schools and learn valuable updates from the CFP Board. This year’s…

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