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Student Question of the Week: Income Tax

By Dan Madden, CFP®

Student Question from: John C.Course:  Income Tax – Childcare Credit Student Question: I have a quick question about review exercise number 3 (below).  It indicates that $2,100 would be the correct answer.  I thought $6,000 was the maximum for two children?  Are you perhaps asking for the minimum instead, or should we have assumed some…

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CFP® Practice Question of the Week: Tax Liability

By Keir

Kevin’s non-qualified stock options are as follows: 2,000 shares: strike price $34 5,000 shares: strike price $30 Current stock price: $65 Kevin’s tax bracket: 42% (federal and state) Kevin has decided to exercise the above stock option awards, which will expire in the next 2 years. Assuming he exercises them today, what is his tax…

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Student Question of the Week: Income Tax – Gross Income Calculation

By Dan Madden, CFP®

Student Question from: John C.Course:  Income Tax – Gross Income Calculation Student Question: Hi.  I just wanted to verify that the employee premium in the example below is not prorated between the “tax-free” and taxable insurance coverage. And, if it’s not, why?    Here is my calculation:  5 x 4.5% + 7 *0.5 % = 26%…

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Student Question of the Week: Income Tax

By Dan Madden, CFP®

Student Question: Student Question from: John C. Course:  Income Tax Question:   I had a quick question about taxpayer return penalties.  In the Review Exercise below, I’m getting an answer of $780, but you all are showing an answer of $810.  Why isn’t my math adding up?  I’m counting 7 months for April to October.   Here is…

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CFP® Practice Question of the Week: Investments

By Keir

A young, single client approaches a CFP® professional with $5,000 stating that he would like to develop a financial plan and invest in the market. This is his first experience investing and he would like help choosing an appropriate account. What is the CFP® professional’s most appropriate course of action? A) Open a brokerage account with margin…

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Student Question of the Week: Fundamentals – Calculator

By Dan Madden, CFP®

Student Question from: Susan M.Course:  Fundamentals – Calculator Student Question: In example 3 (shown below), why do we use monthly instead of annual for the interest and period of time?  Example 3: Bill wants to purchase enough life insurance to provide his family with an inflation-hedged income of $4,000 per month for 25 years. You…

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CFP® Practice Question of the Week: Transfer Tax

By Keir

A client, Tom, informs a CFP® professional that his daughter, Susie, graduated from college last month and landed her first job. Tom wants to establish a Roth IRA for Susie. Tom wants to make a $5,000 contribution for Susie and explains that she does not know about investing and probably would not have the money…

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Good to Know: Financial Advisor is 6th Best Job in America

By Michael Sorrow

According to CNN Money being a financial advisor is the 6thbest job in the United States.  That is no surprise to people already in the industry, but may come as a surprise to those who aren’t familiar with the normal duties of a financial advisor.  So what makes it such a great job?  Primarily, it’s the satisfaction…

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Good to Know: A Whole New Look

By Michael Sorrow

We are very excited to announce the re-launch of our CFP® Certification Education Programs blog.  The goal of this new look and feel is to make the blog more relevant to you, the student.  To that end, we have come up with a number of categories under which we will post information.  We will also…

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