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Social Security Widower Benefits
Course: Insurance PlanningLesson 10: Social Security Student Question: When it comes to social security widower’s benefit’s, is the widow eligible to take his/her SS benefit early (age 62) and then switch over to the deceased spouse’s full benefit at 67? Or would the widow only be eligible for one of the two benefits? Instructor Response: You are directionally correct. Note that a qualifying surviving spouse can generally receive widow or widower’s benefits beginning at age 60, age 50 if disabled, or before age 60 if caring for an eligible child of the deceased worker. Specific to your question, here’s general guidance straight from Social Security: If you [the surviving spouse] are also eligible for retirement benefits (but haven’t applied yet), you have an additional option. You can apply for retirement or survivors benefits now and switch to the other (higher) benefit later. Caveat – like any general guidance, there are exceptions.
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Like-Kind Exchange
William found someone to buy his rental property in Maine. Which of the following properties that William would like to purchase as rental property would allow him to complete a like-kind exchange? A golf course rental property in Arizona that William identified 30 days after selling his Maine property. A beach rental house at the…
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CFP Board Announces 2022 Academic Research Colloquium Conference
CFP® Board Updates The CFP Board and the Center for Financial Planning have announced the dates for the 2022 Academic Research Colloquium for Financial Planning. The conference will be held at the Conrad Washington, DC on October 24th and 25th, 2022. The Colloquium, which is an initiative of the Center for Financial Planning, is a…
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Interest Rate Risk in a Bond
Course: Investment PlanningLesson 10: Fixed Income Securities Analysis Student Question: I’m not clear why holders of long-term bonds are subject to interest rate risk. If a 20-year bond is purchased at par with a coupon rate of 6.25% ($62.50/year), it seems to me that the investor would still receive $62.50 a year regardless of interest rate changes. What…
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Refinance Payment Calculation
Dale refinanced his home mortgage to a 30 year fixed mortgage with biweekly payments. How much is each payment if he owed $350,000 at the time of the refinance and the interest rate is 3%? $680 $771 $1,136 $1,242 CLICK TO REVEAL ANSWER Expand A is the answer. Brandon pays his mortgage every two weeks…
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Are You Protecting Your Money From Identity Thieves?
Good to Know Anyone with assets, an income stream, or a good credit score can be exposed to identity theft. But before going deeper, let’s dispel a few myths-identify theft happens not only to the wealthy but also to the poor, not only to seniors but also to the young, and not only to financial…
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Skewness versus Kurtosis
Course: Investment PlanningLesson 13: Asset Allocation Student Question: Can you help me understand the difference between Kurtosis and Skewness? I can’t quite piece it together. Instructor Response: Entire books have been written on this topic but the following summary should get the points for you on the CFP® Board exam when these topics are tested. …
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Donating Appropriate Stock
Darryl Owens will report an AGI of $100,000 for this year on his federal income tax return. Darryl would like to make a gift to the local hospital of some stock. He would like to donate the stock that will provide the greatest income tax deduction for this year. Which of the following stocks should…
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The Psychology of Financial Planning
CFP® Certificants in the News Rational clients seem to make irrational financial decisions to the puzzlement and frustration of financial advisors. Why? One school of thought blames our emotions for our financial miscues. Regrettably, we are not always self-aware of the power wielded by our sub-conscious emotions in the following behaviors and more: The buy-high/sell-low…
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