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Unconventional Ways to Payoff Student Loans
Good to Know Student loan debt is a financial albatross, voraciously consuming discretionary income and obstructing saving for home down payments, retirement, and more. Take this uber short quiz to see just how challenging the repayment of student loan debt can be. 1. The average student requires years1 to pay off their student loans. Correct.…
Net Unrealized Appreciation
Course: Retirement PlanningLesson 7: Income Distribution Planning for Qualified Plans Student Question: Regarding net unrealized appreciation, the value of company shares at the time of distribution would be considered the client’s cost basis in that any earnings in excess of that amount could be subject to short-term cap gains if sold within a year of…
Underinsured Dwelling Penalty
Sam carries an H0-3 policy with $500,000 of coverage and a $2,000 deductible. It would cost $700,000 to rebuild Sam’s house. How much will his insurance company pay on a $200,000 claim related to a fire that started in Sam’s kitchen? $176,571 $178,571 $231,235 $198,000 CLICK TO REVEAL ANSWER Expand A is the answer. Frank…
529 PLAN FUNDS FOR CFP® CERTIFICATION
CFP® Certificants in the News CFP Board joined the American Institute of Certified Public Accountants, the Financial Planning Association, and 13 other organizations nationwide to support the Freedom to Invest in Tomorrow’s Workforce bill (the bill) currently being considered in the House of Representatives. Refreshingly, the bill has broad bipartisan support from more than 65…
Social Security Retirement Benefits
Course: Estate PlanningLesson 3: Understanding Trusts and Trust Documents Student Question: This question (below) doesn’t quite make sense to me. Could you clarify why the correct answer is D? Robin Elizabeth qualifies for a retirement benefit of $250 and a spouse’s benefit of $400. At her full retirement age, she will receive which of the following?…
Owner of a Grantor Trust
In which of the following situations would the grantor of a trust not be considered the owner? The grantor has a reversionary interest in the trust, of which the grantor’s son is the sole beneficiary, but the grantor cannot exercise this power until eight years after transfer of property to the trust. The grantor retains…
Penalty-Free Withdrawals for Domestic Abuse Survivors
Good to Know Domestic abuse happens far too frequently and more often than is commonly thought. The National Institute of Health warns that: One of every four women “will experience physical violence…by their intimate partner at some point during their lifetime.” The incidence of physical violence against men by their intimate partners is lower but…
Vested versus Contingent Beneficiary
Course: Estate PlanningLesson 3: Understanding Trusts and Trust Documents Student Question: In the example, I would think Northwestern would have a future, contingent interest, as their interest is dependent upon the death of the wife. But the feedback tells me it’s a vested interest. Do we assume death is inevitable, and therefore not a contingent-worthy…
Power of Attorney over Financial Affairs
Laura is concerned she will develop Alzheimer’s disease later in life similar to her mother. Which of the following documents should Laura execute to make sure her son is able to handle her financial affairs in the event she does develop Alzheimer’s disease? Durable springing power of attorney Nondurable springing power of attorney Durable nonspringing…