Blog

Characteristics of a Will

By Dan Madden, CFP®

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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Speak Now or Forever Hold Your Peace—CFP Board’s Proposed Nondisclosure Sanctions

By Bruce Starks, CPA, CFP®

CFP® Certificants in the News CFP Board’s recent background and disclosure review project resulted in a higher-than-expected number of reviews, investigations, and disciplinary actions taken against CFP® certificants. Solely in the author’s opinion, the scope and depth of the disclosure violations, when coupled with the CFP Board’s strategic goal of utmost public trust, may have…

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SEP IRA Contribution Limits

By Bruce Starks, CPA, CFP®

Course: Retirement PlanningLesson 5: Leveraging Nonqualified Plans for Small Business and Not-For-Profit Employees and Owners Student Question: Hello! I am wondering why on this page it says the contribution to a SEP IRA is the lesser of 25% covered compensation or $58,000 (2021), but then it says the combined contribution for SEP IRA and qualified…

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Underinsured Dwelling

By Dan Madden, CFP®

Frank carries an H0-3 policy with $400,000 of coverage and a $1,000 deductible. It would cost $600,000 to rebuild Frank’s house. How much will his insurance company pay on a $100,000 claim related to a fire that started in Frank’s kitchen? $79,000 $82,333 $83,333 $99,000 CLICK TO REVEAL ANSWER Expand B is the answer. Frank…

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What Do Sabre-Toothed Tigers and Investments Losses Have in Common?

By Bruce Starks, CPA, CFP®

Good to Know We introduced the concept of Behavioral Finance in the author’s most recent blog. Specifically, we learned that financial decisions that are rational to our subconscious, primal survival instincts can be breathtakingly irrational to our conscious, objective brains. One of the most perplexing and frustrating examples of this phenomenon is buying high and…

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Donating Short-term Appreciated Securities

By Bruce Starks, CPA, CFP®

Course: Income Tax PlanningLesson 15: Property Transactions Student Question: Dear Greene Consulting Team – In the lesson, deducting donations of ‘cash’ versus ‘long term appreciated securities’ are differentiated.  I’m curious about “short term appreciated securities”.  In other words, if I own a stock – bought at $10,000 and it’s worth $50,000 when I donate, but…

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Calculating Realized Compound Yield on a Bond

By Dan Madden, CFP®

An investor bought a bond at par that matures in 15 years. The bond pays an annual coupon of $130 and the reinvestment rate is 9%. What is the realized compound yield of this bond? 11.05% 12.55% 13.00% 14.10% CLICK TO REVEAL ANSWER Expand A is the answer. One would anticipate a realized compound yield…

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$1 million gift to Center for Financial Planning

By Dan Madden, CFP®

CFP® Board Updates The CFP Board Center for Financial Planning seeks to create a more diverse and sustainable financial planning profession.  The center addresses profession-wide challenges in the areas of diversity and workforce development by bringing together industry professionals, educators, firms, and experts to collaborate and conduct and publish research in these areas. On August…

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Current Ratio and Primary Residence

By Bruce Starks, CPA, CFP®

Course: Fundamentals of Financial PlanningLesson 3: Personal Financial Statements Student Question: Hi What role does the client’s primary residence play in the current ratio calculation? Is their outstanding mortgage loan amount considered a liability? Thank you Candace Instructor Response: Hi Candace, That’s a great question. The residence is not considered a liquid asset and is excluded from…

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