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CFP Board Requests Comments on Revised Standards
CFP® Board Updates The CFP Board recently announced they are asking for comment on the revised Sanction Guidelines and Fitness Standards. The CFP Board and its board members encourage comments to ensure the proposed revisions echo feedback and insights from CFP® Professionals. The proposed revisions are based on a comprehensive review of the Sanction Guidelines…
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Calculating Required Insurance
Course: Insurance PlanningLesson 6: Commercial Property and Liability Insurance Student Question: Would you please help me understand where the 97.2% insured calculation is coming from on review question #2 below? The answer states the the building is 97.2% insured and I am having trouble understanding how that was calculated. Peter purchased an apartment building for…
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Mid-Quarter Depreciation Convention
Course: Income Tax Planning Student Question: Hello, see the question below. I got this question right, but the explanation of why I got it right is weird. I thought mid-month depreciation was only used for real property, and this is saying it is used for equipment. Then, the explanation of the correct answer talks about…
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Early Retirees—Alternatives to Medicare, Part III
Good to Know This article is part III of a IV-part series to help early retirees make informed healthcare coverage choices for the years before they’re eligible for Medicare. In Part I, we peeled back the onion on faith-based medical cost-sharing ministries. In Part II, we illustrated how Affordable Care Act (ACA) Policies can help.…
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Maximum Potential Gain On Long Call
What is the maximum potential gain for an investor who is long a call? It is limited to the amount paid for the option Capped by the exercise price It is equal to the loss of a similar short put position Unlimited CLICK TO REVEAL ANSWER Expand The correct answer is number 4. An investor…
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Solving for Bond Yield
An investor bought a bond at par that matures in 10 years. The bond pays an annual coupon of $110 and the reinvestment rate is 7%. What is the realized compound yield of this bond? 7.23% 8.01% 9.67% 14.10% CLICK TO REVEAL ANSWER Expand C is the answer. One would anticipate a realized compound yield…
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Early Retirees—Alternatives to Medicare, Part II
Good to Know This article is part II of a series to help early retirees make informed healthcare coverage choices for the years before they’re eligible for Medicare. Remember that the first article in this series described how faith-based medical cost-sharing ministries can offer cost-effective coverage for those clients willing to accept behavioral exclusions from…
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Loan Impact on Basis in a Modified Endowment Contract
Course: Insurance PlanningLesson 15: Income Taxation of Life Insurance Student Question: Can you help me better understand the difference between policy basis in a normal policy and policy basis on a modified endowment contract. From the Coursework: But for MEC purposes, the basis is increased by any portion of loans that were considered taxable income…
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Rental Property Like-Kind Exchange
William found someone to buy his rental property in Maine. Which of the following properties William would like to purchase as rental property would allow him to complete a like- kind exchange? A golf course rental property in Arizona that William identified 30 days after selling his Maine property. A beach rental house at the…
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