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The Great Wealth Transfer Is Already Here. Are Advisors Ready?
Introduction The Great Wealth Transfer is often discussed as if it is still decades away. It isn’t. The transfer has already begun. According to research from Cerulli Associates, approximately $124 trillion is expected to transfer through 2048, with roughly $105 trillion moving to heirs and another $18 trillion directed toward charitable causes.1 While the size…
Corporate Bonds in the Marketplace
Course: Investment PlanningLesson 9: Fixed Income Securities Student Question: Hi, Just a question about Corporate Bond Funds. Gathering my information from the book, it seems they are “debt notes” insured to keep the company going. If they are not repaid the person who accepted the “bonds” can sometimes take assets in the company, like equipment…
Net Investment Income
In 2026, a married couple filing jointly has modified adjusted gross income (MAGI) of $320,000, including $40,000 of net investment income. Assuming no other limitations apply, how much of their net investment income is subject to the 3.8% Net Investment Income Tax (NIIT)? The NIIT threshold in 2026 is $250,000. $0 $20,000 $40,000 $70,000 CLICK…
When Good Financial Advice Fails: The Behavioral Side of Planning
Good to Know Walk into almost any failed financial plan and you will rarely find a flawed spreadsheet. The asset allocation was reasonable. The tax strategy held up. The insurance recommendation fit the need. What went wrong happened after the meeting ended-in the quiet months when the client was supposed to act on advice they…
Integration with Social Security Definition
Course: Retirement PlanningLesson 5: Leveraging Nonqualifed Plans for Small Businesses and Not-For-Profit Employees and Owners Student Question: I’ve seen the phrase “plan formula can be integrated with social security” many times, but I don’t really know what this means. Can you explain how that works or is it beyond the scope of what we need…
Revocable Trusts
Which of the following statements regarding a revocable living trust is CORRECT? Assets transferred to the trust are removed from the grantor’s taxable estate The trust provides income tax-free growth during the grantor’s lifetime The grantor retains control over trust assets and may amend the trust The trust avoids gift tax reporting because it is…
Lump-Sum vs Annuity Distributions Considerations
Course: Retirement PlanningLesson 7: Income Distribution Planning for Qualified Plans Student Question: In the discussion as to whether a lump-sum distribution would be appropriate instead of periodic or annuity payments, one of the issues in making that decision is “The Size of the Distribution.” I’m not really understanding what is meant by this statement, “The…
Donating Publicly Traded Stock
In 2026, a client donates publicly traded stock held for more than one year to a qualified charity. The stock has a fair market value of $50,000 and a cost basis of $12,000. Which of the following statements is CORRECT? The client may deduct only the $12,000 cost basis The client recognizes a $38,000 capital…
Charitable Deduction – Tangible Personal Property
Course: Estate PlanningLesson 11: Charitable Gifting Techniques Student Question: Why would a stamp collection donated to the Salvation Army NOT be deductible at FMV? Thanks for your time! Instructor Response: Hi, Great question here. A stamp collection is tangible personal property, the deduction depends on whether the charity’s use of the property is related to its…