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Loan Impact on Basis in a Modified Endowment Contract
Course: Insurance PlanningLesson 15: Income Taxation of Life Insurance Student Question: Hello, Can you help me better understand the difference between policy basis in a normal policy and policy basis on a modified endowment contract. From the Coursework: But for MEC purposes, the basis is increased by any portion of loans that were considered taxable…
CFP Board Code of Ethics
A CFP® professional is recommending a rollover from a client’s 401(k) plan into an IRA that will generate higher ongoing advisory fees. The 401(k) plan offers low-cost institutional share classes not available in the IRA. Under CFP Board’s Code of Ethics and Standards of Conduct, which of the following actions is required? Recommend the rollover…
Behavioral Finance in Volatile Markets: Why Technical Skill Isn’t Enough
Good to Know Most market downturns do not destroy portfolios. They destroy discipline. CFP® professionals often emphasize technical expertise – asset allocation, tax efficiency, withdrawal sequencing. Those skills are foundational. But in volatile markets, technical precision alone does not determine long-term client outcomes. Behavioral management does. Volatility Exposes the Planning Gap Research in behavioral economics…
Phantom Stock
Course: Investment PlanningLesson 5: Fundamental Equity Analysis Student Question: Hello, What is the difference between Stock options and Restricted stock plan or phantom stock? Seems confusing. Instructor Response: Hi, Onward and Upward,
Net Unrealized Appreciation (NUA)
A client retires in 2026 and takes a lump-sum distribution of employer stock from her qualified plan. The stock has a cost basis of $200,000 and a fair market value of $750,000 at distribution. If she elects Net Unrealized Appreciation (NUA) treatment, how will the $550,000 of appreciation be taxed? As ordinary income in the…
The Growing CFP® Workforce: Why Expansion Raises the Bar — Not Lowers It
Good to Know The number of CFP® professionals continues to reach record levels. At first glance, that sounds like simple industry growth. More certificants. More awareness. More credibility. But growth at this scale raises a more important question: Does expansion dilute the designation – or does it increase its competitive standard? The data suggests the…
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: Hi Certainly. A lot of different terms in insurance, to be sure. Assume you pay…
Estate Tax and Applicable Credit
In 2026, Thomas dies with a taxable estate of $18,000,000. He made no prior taxable gifts. The Basic Exclusion Amount (BEA) in 2026 is $15,000,000 and the applicable credit amount is $5,945,800. What portion of Thomas’s estate will be subject to federal estate tax? $0 $3,000,000 $12,054,200 $18,000,000 CLICK TO REVEAL ANSWER Expand B is…
Roth Conversions in a Stable Rate Environment: Why the Real Decision Is About Control, Not Rates
Good to Know The Roth conversion conversation is often framed around one question: “Are tax rates going up or down?” That framing is incomplete. In a stable or moderating rate environment, the strategic value of Roth conversions is less about predicting Congress and more about controlling future planning variables. The Misconception: It’s About Today’s Marginal…