Blog

Student Question of the Week: Insurance

By Dan Madden, CFP®

Student Question from: Jacky ACourse:  Insurance Student Question: It says here that “Most policies will guarantee that the death benefit will never go below the face amount.” I thought that the death benefit and face amount are interchangeable terms. Is the death benefit equal to the face amount plus the cash value? Instructor Response: Very…

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CFP® Practice Question of the Week – Transfer Tax

By Keir

Assuming no deaths in the intervening generations, which of the following is a skip person to Bill for the purpose of generation-skipping transfer taxes if Bill is currently 44 years old? A – Bill’s 4-year-old neighbor B – Bill’s 4-year-old nephew C – Bill’s 40-year-old work colleague D – Bill’s 8-year-old granddaughter by a previous…

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Student Question of the Week: Income Tax

By Dan Madden, CFP®

Student Question from: Rachael GCourse:  Income Tax Student Question: I had a couple questions in regards to tax filing penalties.  1) Since the penalty is calculated from net tax due, what happens when a taxpayer overpaid taxes and gets a refund? How is the penalty calculated? 2) Is the minimum penalty after 60 days on…

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Student Question of the Week: Estate Planning – Gift Tax

By Dan Madden, CFP®

Student Question: Question:  What would happen if a person used the maximum lifetime gift exclusion of $5,120,000 in the year 2012. But the person dies in the year 2015 assuming the limit dropped to a lower amount like 1 or 2 million? The lifetime amount gifted would be higher than the current limit. Instructor Response: Answer: …

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CFP Board Issues Compliance Checklist for Standards of Professional Conduct

By Michael Sorrow

It is no secret that the CFP Board has placed greater and greater emphasis on the Standards of Professional Conduct required of certified financial planners. Evidence of this can be seen in the most recent national Board exams, where greater emphasis has been given to testing knowledge and compliance of these standards. To assist CFP® professionals in complying…

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CFP Board Proposing to Increase CE Hours

By Michael Sorrow

The CFP Board is currently proposing to make the following changes in continuing education (CE) requirements for certified financial planners: Increasing total CE hours required for each renewal period (every 2 years) from 30 to 40 hours. Granting credit for practice management programs and/or pro bono activities sponsored by a registered CE sponsor organization (up…

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Moderation is the Key

By Michael Sorrow

We often feel guilty when we make an expensive purchase. After all, conventional wisdom dictates that every penny must be saved or invested. Scott Rick, a University of Michigan marketing professor, together with other researchers, conducted a study to quantify how people feel about what they buy. During the course of the study, they discovered something…

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Successfully Prepare for Your Retirement Financially with These 5 Keys

By Michael Sorrow

Americans today know that they are less prepared for their retirement because they have been using their savings to pay for bills and other expenses. As a result, they are risking a delay in retirement or a financially insecure retirement. However, according to the Eleanor Blayney, CFP, a consumer advocate from Certified Financial Planner Board…

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The Importance of an Expert’s Advice

By Michael Sorrow

While the financial services market has grown and branched out into online investment firms and discount brokers over the last few years, many Americans still prefer the traditional face-to-face advice of financial professionals. In fact, since the recession hit and the economy has been slow to fully recover, there are indications that concerned Americans are…

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