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CFP Board Elects Three New Directors
CFP® Board Updates On October 19, 2023, the CFP Board announced that its Board of Directors elected three new members: Malik Lee, CFP®, Linda Leitz, CFP® and Elisse Walter. The Board of Directors is the policymaking and oversight body of CFP Board of Standards and CFP Board Center for Financial Planning and acts on behalf…
Premium Payments on Buy-Sell Agreements
Course: Insurance PlanningLesson 17: Business Uses of Life and Disability Insurance Student Question: I have a quick question regarding buy/sell agreement; not clear who would pay the premiums on disability and or life insurance on the principals and the key employees? Instructor Response: Great question. A buy-sell agreement relates to owners of the business while…
Refinance Payment Calculation
Lisa refinanced her home mortgage to a 30-year fixed mortgage with biweekly payments. How much is each payment if she owed $550,000 at the time of the refinance and the interest rate is 3.5%? $943 $1,139 $1,321 $1,453 CLICK TO REVEAL ANSWER Expand B is the answer. Lisa pays her mortgage every two weeks which…
Early Holiday Gifts from Secure 2.0 Act
Good to Know Secure 2.0 Act is dramatically more impactful than is commonly appreciated. Not-to-be-missed “gift” opportunities range from employer 401(k) plan matches for student loan repayments to Roth account rollovers from 529 plans and more. This article will summarize the most powerful opportunities. Employer 401(k) Match for Student Loan Repayments Employers have the…
Social Security Retirement Benefits
Course: Investment PlanningLesson 14: Evaluation Portfolio Performance 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? Instructor Response:…
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…
The CFP Board releases updated demographics on CFP Professionals
CFP® Board Updates The CFP Board periodically updates the demographic makeup of the field of CFP® Professionals. It has long been important to the board that CFP® Professionals reflect our everyday society and our clients. A few key numbers that stick out: The total current number of CFP® Professionals is 97,575 Males make up 76.3%…
Calculating Gross Income from Various Sources
A client received an annual salary from his employment of $30,000. He was a 50% owner of both a C corporation and an S corporation. The C corporation had net profits of $24,000, and the S corporation had income of $17,000. Neither corporation made a distribution. The client’s revocable trust had income of $15,000 but…
Defined Benefit Plan Reversion Tax
Lucky Star Corp has been extremely lucky with their defined benefit plan as it is currently overfunded. Management decided to terminate the plan while they are overfunded and share the excess with the employees. What amount of reversion tax will Lucky Star Corp have to pay upon termination? 0% 10% 20% 50% CLICK TO REVEAL…