Blog
Will Artificial Intelligence Make Human-Based Financial Advice Obsolete?
CFP® Certificants in the News CFP Board tackles this article’s titular question with its recent article ominously titled “Yes, AI IS Going To Take Your Job.” That provocative title may be a bit dramatic but it is a wakeup call for financial advisors and planners. We’re at a crossroads but not a dead end-CFP Board…
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The Fed’s Monetary Policy Tools
Course: Investment PlanningLesson 2: Tools of the Fed Student Question: How does the Fed impact monetary policy by using “Interest on Reserve Balances?” Instructor Response: One of The Federal Reserve’s (FED’s) core functions is to balance the health of the American economy between inflation and recession. The FED uses Interest on Reserve Balances (IORB) as…
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Basis on Sale of Gifted Stock
Tom gave his son, David, a birthday present of Big M stock with a fair market value of $50,000. Tom paid gift tax of $9,700 as Tom had previously given David earlier this year a cash gift. Tom’s adjusted basis in the stock on the date of the gift was $30,000. Three months later, David…
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Is Your Client Using the Wrong Buy-Sell Agreement?
Good to Know Are you looking for new ways to stay in contact with your closely held business owner clients and showcase your financial planning prowess? A recent Supreme Court decision in Connelly v. United States gives savvy financial advisors and planners an opportunity to do just that. But before getting to the court decision, we’ll…
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Interest on a second home
Course: Income Tax PlanningLesson 8: Arriving at Taxable Income Student Question: Is my understanding correct that a taxpayer can deduct interest on a 2nd home under Home Acquisition Debt up to $750K, and also deduct interest on the primary residence under Home Equity Debt up to $750K? So, each home is considered separately and each…
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Characteristics of a Will
Which of the following statements concerning a Will are correct? (1) A will can be altered, amended, or completely rewritten at any time before a person’s death. (2) A will cannot be rewritten but can be amended at any time by a codicil. (3) A will must be signed by the maker and usually must…
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CFP Board Releases July Exam Results
CFP® Board Updates The CFP Board announced the results of the July 2024 exam. This year’s July exam was administered between July 9th and 16th. During this window, 2,999 candidates took the exam, during which 65% received passing scores. The turnout for the July exam was the 2nd largest in exam history, demonstrating the growing presence of…
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Calculating Rate of Return
Course: Investment PlanningLesson 1: Key Principles of Investing Student Question: Hope you are doing well. Can you help solve a practice question? I looked through the textbook and my notes, and just couldn’t wrap my brain about how to solve the problem below. The confusing part to me is that the fund was not sold, so…
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Retirement Funding Calculation
Tom wants $70,000 a year in today’s dollars in retirement. He anticipates retiring in 15 years and living in retirement for 30 years. Tom can earn 6% on his investments and he expects inflation to average 4%. Approximately how much should Tom have saved by the day he retires to meet this goal? $1,021,221 $1,573,041…
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