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Equitable Distributions
Course: Insurance PlanningLesson 17: Business Uses of Life Insurance Student Question: This page explains how the basis for inherited property is affected for common-law states and community property states. How is it affected for equitable distribution states like Florida? Instructor Response: Only marital property is subject to equitable distribution in most common law property states.…
Saving for College
John and Sarah are married, both 40 years old, and file jointly. They have two children, ages 8 and 12, and are in the 24% federal tax bracket. They want to save for their children’s college education and have asked you for advice. They estimate each child will need $40,000 per year for four years,…
High Satisfaction Among CFP Professionals
CFP® Board Updates The CFP Board has released findings from a recent survey of CERTIFIED FINANCIAL PLANNER® professionals, showing high satisfaction with their careers and highlighting the positive impact of CFP® certification on their professional lives. These insights come from the CFP Board’s 2024 survey, conducted by Heart + Mind Strategies LLC, which aimed…
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:…
Lisa and the 7 Steps
Lisa is a CFP® professional meeting a new client, Mark, for the first time. During their initial meeting, Lisa asks Mark about his financial goals, gathers his personal and financial information, and identifies his risk tolerance. Which step in the CFP Board’s 7-step financial planning process is Lisa primarily engaging in during this initial meeting?…
Emerging Trends for Long-Term Care
Good to Know The traditional approaches and challenges to managing long-term care costs are: Self-insurance – the risk of depleting savings (e.g., retirement portfolios), Buy insurance – sharply increasing premiums plus increasingly tight underwriting requirements, and Medicaid – poverty generally required to qualify. It’s been said that nature abhors a vacuum and it appears that…
Custodial Accounts and Gifting
Course: Estate PlanningLesson 13: Case Study Online Student Question: If a check given by Mary to Peter was deposited into a custodial acct where Mary was the custodian, doesn’t that mean that Mary didn’t give up ALL control, so it’s not a complete gift? Instructor Response: Generally, the donor must give up all ownership and…
Carryover of Losses
A client has provided the following information for income tax purposes: $55,000 salary from an S corporation where the client serves as vice-president $4,500 loss from the S corporation $2,000 loss from a 4% interest in a limited partnership $1,300 loss from a 15% interest in Bayside Partnership in which the client does not materially…
Passing the CFP Board Exam
CFP® Certificants in the News “If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.”…