Blog
Reducing the AMT
Which of the following tax planning ideas would help Beth the most if she currently has to pay AMT taxes? Pay her $1,000 January mortgage payment before the end of the year. Pay her $2,000 January alimony payment to her ex-husband before the end of the year. Recognize a $3,000 short term capital gain on…
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CFP Board Announces Elizabeth Miller as 2024 CFP Board Chair-Elect
CFP® Board Updates In July, the CFP Board announced Elizabeth Miller, CFP® as its 2024 Chair-elect. She has previous experience with the CFP Board as a Board Director in 2020 and is a member of CFP Board Center for Financial Planning’s Campaign Development. Liz Miller, CFP®, CFA®, is the founder and President of Summit Place…
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Passing Property Via Will
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…
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Retirement Funding Calculation
Erika wants $50,000 a year in today’s dollars in retirement. She anticipates retiring in 10 years and living in retirement for 30 years. Erika can earn 7% on her investments and she expects inflation to average 4%. Approximately how much should Erika have saved by the day she retires to meet this goal? $913,000 $983,000…
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Long-Term Disability Coverage Trap
Good to Know What’s worse than never accumulating wealth? Losing it after you’ve accumulated it! From that perspective, an underinsured long-term disability can zap a client’s wealth faster than the government can spend tax dollars. When, if ever, has your client reviewed their LTD insurance policy? They may be under the mistaken impression that the…
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Donating Short-term Appreciated Securities
Course: Income Tax PlanningLesson 15: Property Transactions Student Question: 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 I’ve only owned it 6…
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Accelerated Death Benefits
Which of the following individuals would typically qualify for accelerated death benefits under their term life insurance policy? Ida who is expected to die within 7 months from cancer. Jacob who is expected to die within 10 months from AIDS. Kay who is expected to die within 3 months from kidney failure All of the…
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This Short Quiz Can Keep You Out of Trouble With CFP Board
CFP® Certificants in the News CFP Board reminds us of the duty to report ethical matters in their July Newsletter article-Focus on Ethics: Duty to Report Information to CFP Board. This brief quiz will test your understanding. True or False, a CFP® professional must report the following to CFP Board within 30 days? Being named…
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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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