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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…
Retirement Funding Calculation
Erika wants $50,000 a year in today’s dollars in retirement. She anticipates retiring in 10 years and living in retirement for 30 years. Erika can earn 7% on her investments and she expects inflation to average 4%. Approximately how much should Erika have saved by the day she retires to meet this goal? $913,000 $983,000…
CFP Board Holding Virtual Career Fair April 21st
CFP® Board Updates The CFP Board Career Center, whose focus is on connecting highly-qualified talent withs firms, will be hosting a career fair on April 21, 2023. This is the go-to event for employers and job seekers in the financial planning profession. The event will connect top employers in the financial services industry with highly…
Annual Return and Compounding
Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: My question relates to being able to clearly distinguish when the CFP Board exam will require an annual, or other period for the answer. Question 5(b) asks: “What is the rate of return on Investment 2 using daily compounding?” What is the annual rate…
Life Insurance in the Gross Estate
Which of the following assets would be included in Martin’s gross estate? Life insurance on Martin’s life purchased one year before he died by the trustee of Martin’s irrevocable life insurance trust. Life insurance on Martin’s life purchased by Martin’s wife two years before he died. Life insurance on Martin’s life purchased three years before…
Are You Being Scammed by IRS Impersonators?
Good to Know Scamming-especially income tax scamming-is on the rise yet again. Even if you’ve already filed your income tax return, you may not be immune from clever and, in one case, particularly loathsome villainy. The IRS recently published a list of common scams and we’ll focus on three in today’s article, including: IRS impersonators,…
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:…
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%,…
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…