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Tightening the Money Supply
Which of the following is a monetary policy that will tighten the money supply? Sell government securities Lower the discount rate Decrease government spending Increase taxes CLICK TO REVEAL ANSWER Expand A is the answer. Selling government securities is a monetary policy that will tighten the money supply as the cash used to purchase the…
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Are You Displaying Your CFP® Mark Correctly?
CFP® Certificants in the News Take this quick quiz to test your knowledge of CFP Board’s expectations of your use of the CFP® mark. For every use of the mark below, determine which is compliant. Note that question number 1 in our previous article was based on an accidental and incorrect posting by CFP Board.…
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Custodial Accounts and Gifting
Course: Estate PlanningLesson 13: Case Study Online Student Question: If a check given by Mary to Peter was deposited into a custodial acct where Mary was the custodian, doesn’t that mean that Mary didn’t give up ALL control, so it’s not a complete gift? Instructor Response: That’s a great way to approach completed gift questions!…
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Various Sources of Income
A client received an annual salary from his employment of $40,000. He was a 50% owner of both a C corporation and an S corporation. The C corporation had net profits of $20,000, and the S corporation had income of $10,000. Neither corporation made a distribution. The client’s revocable trust had income of $5,000 but…
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CFP Board Announces 2023 Academic Research Colloquium
CFP® Board Updates The CFP Board Center for Financial Planning announced the 7th annual Academic Reseach Colloquium for financial planning and related disciplines. It will be held in person at the Renaissance Arlington Capital View Hotel in Arlington, VA. The dates are December 7-8, 2023. The colloquium is an international meeting of researchers, practitioners, graduate…
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Maximum Family Benefit
Course: Insurance PlanningLesson 10: Social Security Student Question: 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 benefits…
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Tax Saving Strategies
Dan and Karen Burles have 2 children, Coy (age 12, student) and Roger (age 21, student). Dan and Karen own a security equipment sales and installation business, an LLC. Dan and Karen are in the highest income tax bracket. They have a portfolio with $130,000 of municipal bonds (annual income $5,200), $80,000 of corporate bonds…
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Speak Now or Forever Hold Your Peace
CFP® Certificants in the News CFP Board has a deadline of December 3 for you to post comments on it’s proposed revisions to sanction guidelines and fitness standards. A summary of the key proposed changes follow. “A revised inventory of 52 conduct categories that align with the Code and Standards A new list of 25 general aggravating and…
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Unused Premiums in Term Insurance
Course: Insurance PlanningLesson 12: Types of Life Insurance Student Question: Could you help clarify the term “unused premiums” as it relates to term life insurance? I guess I don’t see how you could have a premium not used in term life. Instructor Response: Assume you pay $6,000 in annual prepaid premiums on Jan 1 2020…
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