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Retirement Funding Calculation
Tom wants $70,000 a year in today’s dollars in retirement. He anticipates retiring in 15 years and living in retirement for 30 years. Tom can earn 6% on his investments and he expects inflation to average 4%. Approximately how much should Tom have saved by the day he retires to meet this goal? $1,021,221 $1,573,041…
CFP Board Sanctions
CFP® Certificants in the News The authority to display the CFP® mark is a privilege, not an absolute right. Recent CFP Board disciplinary actions underscore that point emphatically. We’ll summarize three such actions in this article, beginning with Public Censure. Preview modal- STRATEGIES FOR MANAGING CONCENTRATED WEALTH Clients who have their wealth concentrated in a single asset…
Annual Return and Compounding
Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: My question relates to being able to clearly distinguish when the CFP Board exam will require an annual, or other period for the answer. Question 5(b) asks: “What is the rate of return on Investment 2 using daily compounding?” What is the annual rate…
Defining an Insurance Contract
Olivia is a 25-year old single mother with twin girls who just turned three. Olivia has worked for the last 5 years as an administrative assistant for a local law firm. Olivia’s firm provides her with a basic medical insurance policy and a split definition disability. Which of the following is the biggest risk exposure…
CFP Board Announces new Chair-Elect
CFP® Board Updates At its July meeting, The CFP Board of Directors announced that it has elected Terri Kallsen as its 2025 Board Chair-Elect. She will serve as the Chair of the Board if Directors in 2026. Liz Miller, the 2024 Chair-Elect, will serve as Chair of the Board in 2025. To learn more about…
Coverdell ESA versus 529
Course: Fundamentals of Financial PlanningLesson 7: Educational Aid and Funding Calculation Student Question: So is there ever any benefit to choosing a Coverdell ESA over a 529 Plan? It seems the big difference in the two is that the Coverdell has an AGI limit, so why would you just not always steer clients towards 529 Plans since…
Underinsured Dwelling
Tom carries an H0-3 policy with $300,000 of coverage and a $3,500 deductible. It would cost $500,000 to rebuild Tom’s house. How much will his insurance company pay on a $100,000 claim related to a fire that started in Tom’s kitchen? $68,000 $71,500 $96,500 $100,000 CLICK TO REVEAL ANSWER Expand B is the answer. Tom…
Millennials Financial Milestone Survey
CFP® Certificants in the News Let’s face it, millennials get a bad rap at times in the popular press over their financial discipline. But couldn’t most of us do better at this discipline? Is everything we read on the internet true and unbiased? After reading this article, we encourage you to consider that, just like…
Dependent Care Assistance Plan
Course: Retirement PlanningLesson 9: Building Retirement Wealth by Maximizing Fringe Benefits Student Question: Is a Dependent Care Assistance Plan (DCAP) funded by an Flexible Spending Account the same thing as a Dependent Care FSA? If not, could you provide some additional info as to how the two would work together (could an individual utilize both…