Blog
Coverdell ESA versus 529
Course: Fundamentals of Financial PlanningLesson 7: Educational Aid and Funding Calculation Student Question: So is there ever any benefit to choosing a Coverdell ESA over a 529 Plan? It seems the big difference in the two is that the Coverdell has an AGI limit, so why would you just not always steer clients towards 529 Plans since…
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Solving for Bond Yield
An investor bought a bond at par that matures in 10 years. The bond pays an annual coupon of $110 and the reinvestment rate is 7%. What is the realized compound yield of this bond? 7.23% 8.01% 9.67% 14.10% CLICK TO REVEAL ANSWER Expand C is the answer. One would anticipate a realized compound yield…
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REMONDER: New “Per Capita” Fee for CFP Board Exam Takers Begins January 1
CFP® Board Updates NOTE: THIS IS A REPEAT OF LAST MONTH’S BLOG. WE WANT TO BE SURE EVERYONE IS AWARE OF THE NEW REQUIREMENT Students of our CFP Certification Education Programs are aware, but this may serve as a reminder, the CFP Board will begin charging the $195 “Per Capita” fee on January 1, 2023.…
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Life Insurance Taxation
Course: Insurance PlanningLesson 12: Types of Life Insurance Student Question: Am I correct in thinking that, as a rule, if a life insurance policy is paid for with after-tax dollars (non-deductible) that death benefit proceeds are always received tax free? Instructor Response: You are directionally correct but let’s dig a little deeper. Generally, death benefits…
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Tax Saving Strategies
Dan and Karen Burles have 2 children, Coy (age 12, student) and Roger (age 21, student). Dan and Karen own a security equipment sales and installation business, an LLC. Dan and Karen are in the highest income tax bracket. They have a portfolio with $130,000 of municipal bonds (annual income $5,200), $80,000 of corporate bonds…
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Savvy Year-End Tax Moves for Individual Taxpayers
Good to Know Time is running out for smart year-end tax moves. Yet, client concerns over economic and political turmoil can interfere with year-end tax planning. For example, how will the market perform given record inflation, the FED’s interest rate hikes, and the threat of recession? What will happen to tax rates and deductions in…
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Net Unrealized Appreciation
Course: Retirement PlanningLesson 7: Income Distribution Planning for Qualified Plans Student Question: Regarding net unrealized appreciation, the value of company shares at the time of distribution would be considered the client’s cost basis in that any earnings in excess of that amount could be subject to short-term cap gains if sold within a year of…
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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…
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Speak Now or Forever Hold Your Peace
CFP® Certificants in the News “Certified Financial Planner Board of Standards, Inc. (CFP Board) announced…that it is seeking public comment on proposed changes to CFP Board’s Procedural Rules. The proposed changes are intended to modernize CFP Board’s enforcement processes and further CFP Board’s work to uphold its Code of Ethics and Standards of Conduct (Code and Standards) for the…
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