Blog

Prepaid Plan Refunds

By Dan Madden, CFP®

Course: Fundamentals of Financial PlanningLesson 6: Educational Savings Techniques Student Question: Good afternoon – What happens if a parent has contributed to a prepaid tuition plan, but the child decides not to attend that school? Also, do contributions pertain to just one school? Or is it any school within that state? Kind regards, Austin Instructor…

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Who is an Investment Advisor?

By Dan Madden, CFP®

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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ALERT – IRS Audit Red Flags

By Bruce Starks, CPA, CFP®

Good to Know The “red flag” expression comes to us courtesy of its first use in 1602 to signal the preparation for war. An IRS audit, while not a declaration of war against a taxpayer, can certainly put an unprepared client in the cross hairs of an unpleasant tax conflict. Before unfurling the red flags,…

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Accounting for Inflation

By Bruce Starks, CPA, CFP®

Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: Good afternoon.  Can you explain why we didn’t take inflation into consideration for the second calculation in the first problem? Dawn wants to have $25,000 in today’s dollars for a round-the-world cruise when she retires 11 years from now. She assumes she can earn…

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Defining a Stock Spread

By Dan Madden, CFP®

Which of the following combinations correctly describes a spread? A combination of a short sale and a purchase of a call for the same stock A combination of buying and selling calls on the same stock with different expiration dates and exercise prices A combination of a put and a call on the same stock…

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2021 CFP Board Exam Dates Set

By Dan Madden, CFP®

CFP Board Updates The CFP Board has confirmed exam dates for the three 2021 CFP Board Exam cycles. The CFP® Exam is offered three times a year across 8-day testing windows that take place in March, July and November. You’ll be able to select your test day and testing location from a network of convenient…

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Calculating Late Filing/Paying Penalties

By Bruce Starks, CPA, CFP®

Course: Income Tax PlanningLesson 1: Introduction to Taxation Student Question: For this question, could you send me the math behind finding the answer?  I want a better understanding of how the penalty was assessed. Review Exercise: Jerry’s taxes were due April 15th. He filed his return in October of the same year and paid his…

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Transfer of Interest in Property Held in Joint Tenancy

By Dan Madden, CFP®

Gary Chapelle owns a duplex with his brother in joint tenancy with right of survivorship. Gary would like to pass his interest in the property to his son Bill and Gary has provided in his will that his interest in the duplex will pass to Bill. Which of the following statements concerning the transfer of…

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The Qualified Business Income Deduction – Part I

By Bruce Starks, CPA, CFP®

Good to Know The Section 199A deduction, popularly referred to as the 20% Qualified Business Income deduction, was enacted to reduce the disparity in income tax rates between C Corporations and “pass-through businesses.” There is no entity level income tax in pass-through businesses – business gains and losses “pass through” to the business owner’s personal…

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