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CFP Board’s Disciplinary Actions: Implications for the CFP Board Exam

By Bruce Starks, CPA, CFP®

Good to Know Forewarned is forearmed when studying for the CFP Board exam or choosing a CFP® Certification program. In its latest release of public discipline, CFP Board telegraphs its continued priority for enforcing ethical conduct. Recent disciplinary actions include public censures, suspensions, and revocations. Public Censures Public censures were issued for: Selling securities without…

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Maximum Family Benefit

By Bruce Starks, CPA, CFP®

Course: Insurance PlanningLesson 10: Social Security Student Question: Hello- Does the maximum family benefit apply to a husband and wife that are both fully insured if the combined total between the two exceeds the maximum family limit? If I understand correctly, the maximum family limit only applies if there are beneficiaries within the family receiving…

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Refinance Payment Calculation

By Dan Madden, CFP®

Dale refinanced his home mortgage to a 30 year fixed mortgage with biweekly payments. How much is each payment if he owed $350,000 at the time of the refinance and the interest rate is 3%? $680 $771 $1,136 $1,242 CLICK TO REVEAL ANSWER Expand A is the answer. Brandon pays his mortgage every two weeks…

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CFP Board Releases New Practice Exams

By Dan Madden, CFP®

CFP® Board Updates For several years, the CFP Board has provided CFP Board exam practice exams to help students prepare for the board exam.  Those exams have now been updated to mirror the format and content coverage of the CFP® Board Exam, which provides the closest possible experience to exam day.  In addition, upon completion…

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Ownership of Property in a Trust

By Bruce Starks, CPA, CFP®

Course: Estate PlanningLesson 3: Understanding Trusts and Trust Documents Student Question: Hello- Perhaps a slightly mundane question, but here we go: It had been my understanding that property in a trust was held and owned by the trust itself, as a separate legal entity. However, several times in this course there has been reference to the trustee having…

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Modified Endowment Contract Loan

By Dan Madden, CFP®

Alan paid $70,000 for a MEC policy when he was 50 years old. What are the income tax ramifications if he takes a $15,000 loan 3 years after purchasing the policy? The policy was worth $78,000 at the time of the loan. Alan would not have to report any taxable income or penalty. Alan would…

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What Do You Need to Know to Pass the CFP Board Exam?

By Bruce Starks, CPA, CFP®

Good to Know The question posed in this article’s title can be answered by applying the timeless wisdom of a Chinese general who died over 2,500 years ago. “If you know the enemy and know yourself, you need not fear the result of a hundred battles.” -Sun Szu, 544-496 BC While the CFP Board exam…

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Passing Property Via Will

By Bruce Starks, CPA, CFP®

Course: Investment PlanningLesson 14: Evaluation Portfolio Performance Student Question: Hello- I’m a little confused about the example (below) discussing an heirloom of only sentimental value. Why would this be titled at all for a will, especially since an earlier lecture said items of no value would pass through will as the situation does not involve…

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Gift and Estate Tax Basic Exclusion Amount vs. Generation-Skipping Transfer Tax Exemption Amount

By Bruce Starks, CPA, CFP®

Perry made a $12,060,000 taxable gift to his son Ross on 1/1/2022 and a taxable gift of $12,060,000 to Ross’s daughter Marilyn on April 30, 2022. Perry made no gifts or generation-skipping transfers before 2022. Note the following: The Basic Exclusion Amount (BEA) in 2022 is $12,060,000, The GST Exemption is the same dollar amount…

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