Blog
CFP Board Announces Revision of Procedural Rules
CFP® Board Updates On May 16, 2023, the CFP Board announced the adoption of revised Procedural Rules. These rules govern the manner in which the process for investigating alleged misconduct takes place, as well as the process for enforcing the Board’s Code of Ethics and Standards of Conduct. The revised rules will take effect on…
Maximum Family Benefit
Course: Insurance PlanningLesson 10: Social Security Student Question: Does the maximum family benefit apply to a husband and wife that are both fully insured if the combined total between the two exceeds the maximum family limit? If I understand correctly, the maximum family limit only applies if there are beneficiaries within the family receiving benefits…
Defined-Benefit Pension Plans – Actuarial Assumptions
Which of the following statements concerning the various actuarial assumptions used in estimating an employer’s contributions to a defined-benefit pension plan is correct? The higher the assumed rate of investment income, the larger the employer’s assumed contribution rate. The higher the employee turnover or termination rate, the larger should be the employer’s assumed contribution rate.…
Artificial Intelligence—Friend or Foe?
Good to Know Artificial intelligence is either the greatest threat to our species or the greatest boon to humankind, depending on what headline you read. The author makes the cheerful assumption that AI does not become “self-aware” and eradicate humanity á la “Terminator.” Neither this article nor financial planning will matter if the author has…
Phantom Stock
Course: Investment PlanningLesson 5: Fundamental Equity Analysis Student Question: What is the difference between Stock options and Restricted stock plan or phantom stock? Seems confusing. Instructor Response:
Defined Benefit Plan Reversion Tax
Lucky Star Corp has been extremely lucky with their defined benefit plan as it is currently overfunded. Management decided to terminate the plan while they are overfunded and share the excess with the employees. What amount of reversion tax will Lucky Star Corp have to pay upon termination? 0% 10% 20% 50% CLICK TO REVEAL…
CFP Board Urges Senate to Pass Bill to Protect Seniors
CFP® Certificants in the News You may be encouraged to know that the U.S. House of Representatives, regardless of their political party, can still rally behind a noble cause. The Financial Exploitation Prevention Act passed the House with a bipartisan vote of 419 to 0 and now awaits action by the Senate. How exactly would…
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…