Blog

Passing Property Via Will

By Bruce Starks, CPA, CFP®

Course: Investment PlanningLesson 14: Evaluation Portfolio Performance Student Question: Hello – I’m a little confused about the example (below) discussing an heirloom of only sentimental value. Why would this be titled at all for a will, especially since an earlier lecture said items of no value would pass through the will as the situation does…

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Impact on Net Worth

By Dan Madden, CFP®

Last year, David paid down his motorcycle loan by $4,000 and his school loan by $8,000. He was also able to add $11,000 to his IRA from his checking account. David’s investment account grew by $15,000 during the year. How much did David’s net worth increase for the year? $12,000 $23,000 $27,000 $38,000 CLICK TO…

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The Georgia Senate Races and Personal Tax Planning

By Bruce Starks, CPA, CFP®

Good to Know- Income Tax Top Marginal Income Tax Rates Current Status: The maximum marginal income tax rate is 37% and, for example, would apply to a single taxpayer with taxable income greater than $523,600 (2021, as indexed under current law). Potential 2021 Change: The top marginal rate could increase to 39.6% and would apply…

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Information Ratio

By Bruce Starks, CPA, CFP®

Course: Investment PlanningLesson 14: Evaluation Portfolio Performance Student Question: Hello, In calculating Information Ratio, why do we need the denominator to be Standard Deviation of the difference in portfolio and index returns?  This is unlike the Sharpe Ratio, where the denominator is Standard Deviation of the Portfolio. Doesn’t the Standard Deviation of the Portfolio indicate…

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Section 303 Redemption

By Dan Madden, CFP®

A Sec. 303 Redemption is most likely appropriate for which of the following estates? At Fred’s death, Fred owned all of his assets, including the stock of a closely-held corporation in joint tenancy WROS with his wife. Before Gloria’s death, she transferred all of her assets, including the stock, in a closely-held corporation to an…

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CFP Board Registered Programs Conference

By Dan Madden, CFP®

CFP Board Updates The CFP Board Registered Programs Conference took place December 15-16, 2020. The conference is an annual gathering of financial planning educators, thought leaders, financial service professionals, and the CFP Board. For registered programs, it provides an opportunity to network with other schools and learn valuable updates from the CFP Board. This year’s…

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Skewness versus Kurtosis

By Bruce Starks, CPA, CFP®

Course: Investment PlanningLesson 13: Asset Allocation Student Question: Hi, Can you help me understand the difference between Kurtosis and Skewness?  I can’t quite piece it together. Thanks, Meg Instructor Response: Hi Meg, Entire books have been written on this topic, but the following summary should get the points for you on the CFP Board Exam…

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Calculating Monthly Retirement Benefit

By Dan Madden, CFP®

Savanna’s PIA amount is $800. If her full retirement age is 67 and she decides to start taking Social Security benefits at age 64, what is the amount of her monthly benefit? $400 $560 $640 $800 CLICK TO REVEAL ANSWER Expand C is the answer. Savanna will have a 20% reduction in benefits for taking…

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Good to Know: Environment, Social, and Governance (ESG) Investing in Employer-Sponsored Retirement Plans

By Bruce Starks, CPA, CFP®

Good to Know We look to a highly respected source – The National Law Review1 – to help clarify confusion over ESG (Environmental, Social, Governance) investing issues in employer-sponsored retirement plans. Specially, we focus upon The National Law Review’s commentary on these issues: An overview of the final rule, Key requirements of the final rule,…

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