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Unused Premium
Course: Insurance PlanningLesson 8: Gift and Estate Valuation Student Question: Could you please clarify for me what the unused premium would be in term life insurance? I don’t quite understand how you could not use the premium. Thanks. Instructor Response: Certainly. A lot of different terms in insurance, to be sure. Assume you pay $6,000…
Who is an Investment Advisor?
Which of the following individuals need to register with the SEC under the Investment Advisers Act of 1940? Adam who retired last year from a big brokerage house but he recently started providing services to 12 clients who live in his neighborhood that he met while out golfing. Belinda who writes weekly investment articles for…
CFP Board Launches Endowed Scholarship for Women
CFP® Board Updates The CFP Board announced on May 1 the creation of an endowed scholarship program to fund the education of women who are aspiring to make an impact and become CFP® Professionals. The scholarship is operated through the CFP Board Center for Financial Planning. This scholarship will award up to $5,000 a qualified…
Calculating Late Filing/Paying Penalties
Course: Income Tax PlanningLesson 1: Introduction to Taxation Student Question: For this question, could you send me the math behind finding the answer? I want a better understanding of how the penalty was assessed. Review Exercise: Jerry’s taxes were due April 15th. He filed his return in October of the same year, and paid his…
Black-Scholes Option Valuation Model
All of the following are correct about the impact of an increase in the single variable under the Black-Scholes Option Valuation Model EXCEPT: Market price has a positive impact on put options. Strike price has a positive impact on put options. Expiration time has a positive impact on call options Stock volatility has a positive…
Executive Compensation—Restricted Stock
Good to Know All that glitters is not gold. -French Monk Alain de Lille, 1175 Assume your client just received a grant of Restricted Stock from their employer. Congratulations are in order, but before they go out and use some of that grant “money” to celebrate, let’s understand exactly what they received and when they…
Real Estate Income and IRA Contributions
Course: Retirement PlanningLesson 1: Using IRAs to Build and Distribute More Retirement Income Student Question: This page states that rental income is not included in the definition of earned income. If the client is a professional real estate developer whose income is derived mainly from rental income, would they be able to contribute to an…
Reducing the AMT
Which of the following tax planning ideas would help Beth the most if she currently has to pay AMT taxes? Pay her $1,000 January mortgage payment before the end of the year. Pay her $2,000 January alimony payment to her ex-husband before the end of the year. Recognize a $3,000 short term capital gain on…
CFP Board Exam Pass Rate was 65% in March 2023
CFP® Board Updates The most recent CFP Board exam, administered in March 2023, produced a pass rate of 65%. That was in increase of 1% from November 2022, and in-line with previous exam pass rates that all hovered in the mid-60% range. There was also a record number of exam test takers in March, with…