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CFP Establishing Competency Standards Commission
CFP® Board Updates The CFP Board has announced they will be forming a Competency Standards Commission in 2023. The purpose of the commission will be to review and evaluate the CFP Board’s competency requirements for Education, Examination, Experience, and Continuing Education. The commission will be comprised of volunteers selected from financial services firms, educators, certification…
Equitable Distributions
Course: Income Tax PlanningLesson 15: Property Transactions Student Question: This page explains how the basis for inherited property is affected for common-law states and community property states. How is it affected for equitable distribution states like Florida? Instructor Response: Only marital property is subject to equitable distribution in most common law property states. The purpose…
Characteristics of a Will
Which of the following statements concerning a Will are correct? (1) A will can be altered, amended, or completely rewritten at any time before a person’s death. (2) A will cannot be rewritten but can be amended at any time by a codicil. (3) A will must be signed by the maker and usually must…
The Myth of Substantial Income Taxes on Social Security Benefits
Good to Know Social Security Retirement Benefits (SSRBs) can be as high as $55,000 or more annually for high-income clients who choose to delay benefits claiming until age 70. But here’s the big question-how much of that SSRB will the IRS siphon away? We have good news! Many clients will pay income tax on a…
Book Value versus Market Cap
Course: Investment PlanningLesson 5: Fundamental Equity Analysis Student Question: Hi, How is a company’s book value different from the market cap? Instructor Response: Book value is an accounting concept generally based upon the acquisition costs of and the legally binding amounts of liabilities. It is the amount of cash that would be left over if…
Power of Attorney over Financial Affairs
Laura is concerned she will develop Alzheimer’s disease later in life similar to her mother. Which of the following documents should Laura execute to make sure her son is able to handle her financial affairs in the event she does develop Alzheimer’s disease? Durable springing power of attorney Nondurable springing power of attorney Durable nonspringing…
Does Recommending Cryptocurrency Violate CFP Board Rules?
CFP® Certificants in the News You’re a CFP® Professional with an investment advisory practice and you just advised a client to purchase cryptocurrency assets (CRAs). Did you just violate the ethical standards? Should you expect a communication from the Disciplinary and Ethics Commission? Here’s the seemingly equivocal answer-maybe yes and maybe no. This article will…
Accounting for Inflation
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…
Qualified Pension Plan Ratio Percentage Test
Assume that, of the 100 employees eligible for participation in G Company’s qualified pension plan, 20 are highly-compensated employees, and all 20 participate. What is the minimum number of G Company’s nonhighly-compensated employees that must participate in G Company’s qualified pension plan to meet the ratio percentage test? 20 50 56 70 CLICK TO REVEAL…