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Determining Correct Years of Growth
Course 1: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: Hello, in the question below, I am a little lost on why it is 9 years for N instead of 10? Could you explain? In Year 1, Harvey assumed he would need the equivalent of $500,000 in Year 1 dollars to retire in…
Adequate Family Protection
Mark and Jane, both 40 years old, have two young children and are concerned about protecting their family’s financial security in case of unexpected events. Mark earns $100,000 annually, while Jane stays home to care for their children. They currently have $50,000 in savings and a mortgage balance of $300,000. Mark has group term life…
CFP Board Seeks Public Input on Proposed Updates to Competency Standards
CFP® Board Updates The CFP Board of Directors is inviting public comment on proposed revisions to the Competency Standards for CFP® certification, covering education, experience, examination, and continuing education requirements. These updates aim to keep the standards modern, relevant, and aligned with the evolving financial planning profession. To develop these recommendations, the CFP Board formed…
Beta as a measure of volatility
Course 3: Investment PlanningLesson 1: Key Principles of Investing Student Question: I am having a difficult time conceptualizing Beta as a measure of only systematic risk AND as a measure of volatility relative to the broader market. By way of illustration, assume an individual equity has wild swings in value over a one-year period (volatility)…
Best tax-efficient strategy
John, a 45-year-old professional, recently inherited $100,000. He has no immediate need for the funds and wants to invest the money to help secure his retirement, which he plans for at age 65. John has moderate risk tolerance and currently contributes the maximum allowable amount to his 401(k) each year. He wants a diversified investment…
CFP Board Announces November Exam Results
CFP® Board Updates The CFP Board has announced the results for the November 2024 CFP® Certification Exam, held during the testing window of November 6-13. A total of 3,755 candidates participated, with 6% opting for remote testing. This marks the second-largest group to ever take the CFP® Certification Exam in November. The pass rate for…
Completed Gift with JTWROS
Course: Estate PlanningLesson 1: Property Ownership Student Question: In the example here of a completed gift, doesn’t Harry still have rights to the condo if it is a JTWROS? How is that considered a completed gift? Example Harry buys a condominium for $200,000. He wants his brother, Hank, to get the property when he dies,…
Maximizing Retirement Savings
A financial planner is working with a client, Lisa, who is 35 years old, earns $100,000 annually, and has expressed an interest in maximizing her retirement savings. Lisa’s employer offers a 401(k) plan with a 100% match up to 5% of her salary. She also has a Roth IRA and an emergency fund covering six…
Choosing the Best Medicare Advantage Plan
Good to Know Medicare Advantage, or Medicare Part C, is an increasingly popular alternative to Original Medicare, offering highly sought-after additional benefits and coverages. With a wide variety of plans available, selecting the right one can feel overwhelming. However, by considering key factors such as coverage needs, costs, and network restrictions, you can confidently choose…