Blog
CFP Board Certification Marks Usage Updated
CFP® Board Updates Say goodbye to the TM after CERTIFIED FINANCIAL PLANNER. It’s now an ®. The U.S. Patent and Trademark Office officially registered the CERTIFIED FINANCIAL PLANNER® mark earlier this summer, strengthening the legal protections. This change signifies a great achievement for the CFP Board and Professionals alike. It means the mark is now…
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Net Unrealized Appreciation
Course: Retirement PlanningLesson 7: Income Distribution Planning for Qualified Plans Student Question: Regarding net unrealized appreciation, the value of company shares at the time of distribution would be considered the client’s cost basis in that any earnings in excess of that amount could be subject to short-term cap gains if sold within a year of…
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Characteristics of a Will
Which of the following statements concerning a Will are correct? A will can be altered, amended, or completely rewritten at any time before a person’s death. A will cannot be rewritten but can be amended at any time by a codicil. A will must be signed by the maker and usually must be witnessed by…
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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…
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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:…
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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…
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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…
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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…
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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…
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