Blog
Value of Life Insurance in Buy-Sell Agreements
Course: Insurance PlanningLesson 17: Business Uses of Life Insurance Student Question: Do buy sell agreements accounts for projected growth of the company? Do the life insurance benefits increase over time to account for projected growth, or perhaps can they invest and grow conservatively to keep up with inflation (or COLA on the plan)? Instructor Response:…
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ADP Rules and 401(k)
KC Corporation offers a 401(k) plan. Under the ADP rules, what is the maximum salary percentage the highly compensated employees can contribute if the non-highly compensated employees contribute 6% of their salary? 6% 8% 10% 12% CLICK TO REVEAL ANSWER Expand B is the answer. Since the non-highly compensated employees contributed between 2% and 8%,…
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Opportunities for Financial Advisors
CFP® Certificants in the News What do an aging financial advisor community and an increasing demand for financial planning tell us? According to CFP Board, our profession needs a talent pipeline; CFP Board is supporting this effort in three ways: GUIDE TO CAREERS IN FINANCIAL PLANNING publication, FINANCIAL PLANNING CAREER PATHS Guide, and SCHOLARSHIPS. We’ll…
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Deductible Mortgage Interest
Course: Income Tax PlanningLesson 8: Arriving at Taxable Income Student Question: If a client has a $250k mortgage on a home worth $500k and they refinance to take equity out of their home, say $100k. Then they use that $100k to purchase a vacation home worth $300k (so they now have $450k in mortgage debt),…
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Accelerated Death Benefits
Which of the following individuals would typically qualify for accelerated death benefits under their term life insurance policy? Ida who is expected to die within 7 months from cancer. Jacob who is expected to die within 10 months from AIDS. Kay who is expected to die within 3 months from kidney failure All of the…
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CFP Board Continues Its Diversity Focus
CFP® Certificants in the News According to CFP Board “The Abacus Wealth Partners Scholarship for Increased Diversity in Financial Planning aims to advance the financial planning profession by providing financial assistance to students pursuing CFP® certification who are from populations underrepresented in the profession and have a financial need (emphasis added).” About The Sponsor Abacus…
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Qualified Plans – Parties in Interest
Course: Retirement PlanningLesson 6: Matching Business Owner Needs to the Right Qualified Plan Student Question: How is “connection to the plan” defined in regards to a “party in interest” when talking about qualified plans? Would a plan participant count as someone with a connection to the plan? From the Coursework: A party in interest is…
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Mary’s Underinsured Dwelling
Mary carries an H0-3 policy with $500,000 of coverage and a $2,000 deductible. It would cost $700,000 to rebuild Mary’s house. How much will his insurance company pay on a $150,000 claim related to a fire that started in Mary’s kitchen? $119,498 $121,231 $131,928 $150,000 CLICK TO REVEAL ANSWER Expand C is the answer. Mary…
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How Have You Planned for Healthcare Costs in Retirement?
Good to Know The purpose of this article is to separate fact from fiction and help you motivate clients to plan, starting now, for the inevitable healthcare costs in retirement. We’ll start with good news-Americans are living longer. Average life expectancy increased by almost 10 years during the 50 years ending in 2010, according to…
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