Blog
Who is an Investment Advisor?
Which of the following individuals need to register with the SEC under the Investment Advisers Act of 1940? Adam who retired last year from a big brokerage house but he recently started providing services to 12 clients who live in his neighborhood that he met while out golfing. Belinda who writes weekly investment articles for…
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Trailing Commissions and Sales-Related Compensation
CFP® Certificants in the News True or false, a CFP® professional who receives trailing commissions cannot represent their practice as “fee-only” under any circumstance. The answer may surprise you. Read on to see why. CFP Board “Standard A.12 of the Code of Ethics and Standards of Conduct provides that a CFP® professional may not make false or misleading representations…
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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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Selecting an Appropriate Trust
Which of the following trusts should Jason establish in his Will to provide for his son Gaven’s living expenses until Gaven reaches age 65 if Gaven is currently a 30-year old unemployed aspiring actor? 2503(b) trust 2503(c) trust Crummey trust Totten trust CLICK TO REVEAL ANSWER Expand A is the answer. The 2503(b) trust would…
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Four Opportunities for 2024—Secure Act 2.0
Good to Know A savvy financial advisor can help a client maximize key benefits in 2024 from the Secure Act 2.0, including: Required minimum distributions from Designated Roth Accounts, Emergency Savings Account, Student Loan 401(k) matching contributions, and 529 Plan to Roth rollovers. The IRS has not clarified how these 2024 changes will be implemented. …
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Net Present Value Calculation
Course: Fundamentals of Financial PlanningLesson 5: Using the Financial Calculator Student Question: I have a question about NPV. In the section “NPV and IRR Review Questions”, the first question references someone trying to decide if they should prepay tuition. Here is the question: Instructor Response: When I look at the answer keystrokes, it appears as…
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Medicare Part A Expenses
Which of the following individuals currently covered by Medicare Part A will not have any of their expenses covered by Medicare Part A? Evan who spent one week in hospice care before losing his battle with cancer. Felicia who was treated by her doctor for Strep throat. Greg who was needed a walker following hip…
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CFP Board Announces Revision of Procedural Rules
CFP® Board Updates On May 16, 2023, the CFP Board announced the adoption of revised Procedural Rules. These rules govern the manner in which the process for investigating alleged misconduct takes place, as well as the process for enforcing the Board’s Code of Ethics and Standards of Conduct. The revised rules will take effect on…
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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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