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Fee-Only Planner Definition
Course: Fundamentals of Financial PlanningLesson 1: The Personal Financial Planning Process Student Question: Hello- I have a question on the example where it says a fee-only CFP Certificant cannot accept sales-related compensation such as commissions on the sale of life insurance products. Let’s say that a CFP Certificant recommended that the client go speak with…
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Solving for Mortgage Payment
Shannon refinanced her home mortgage to a 30 year fixed mortgage with biweekly payments. How much is each payment if she owed $350,000 at the time of the refinance and the interest rate is 4.5%? $818 $881 $1,012 $1,229 CLICK TO REVEAL ANSWER Expand A is the answer. Shannon pays her mortgage every two weeks…
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Investment Risk on the CFP Board Exam: Part III
Good to Know Question: Why should financial planners and advisors care about skewness? Answer: A negative skew can obscure excess downside risk in a portfolio. We discussed the mean (geometric average) return and standard deviation in our first two blogs. Now we’ll use those concepts to illustrate skewness in this, the third installment in our…
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Premium Payments on Buy-Sell Agreements
Course: Insurance PlanningLesson 17: Business Uses of Life and Disability Insurance Student Question: Hello- I have a quick question regarding buy/sell agreement; not clear who would pay the premiums on disability and or life insurance on the principals and the key employees? Thanks Emerito Instructor Response: Hi Emerito, Great question. A buy-sell agreement relates to…
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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…
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LITTLE USED RESOURCE TO PASS THE CFP BOARD EXAM
CFP® Certificants in the News Certificants who successfully navigated the CFP Board exam know how challenging the exam can be. Your CFP Board invites you to share your experiences with those preparing [for] the exam through the Mentorship program. The following excerpt from the program provides a high-level summary. “The CFP Board Mentor Program connects…
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Present Value versus Payment Function on Calculator
Course: Fundamentals of Financial PlanningLesson 7: Educational Aid and Funding Calculation Student Question: Hello- In Step 5: solving for LUMP SUM needed today… Step 5: Determine funding actually needed Lump sum needed TODAY to fund the full cost of college education. How come we are solving for PV and not PMT? Thanks Kelly Instructor Response: Hi…
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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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CFP BOARD’S PUBLIC AWARENESS CAMPAIGN
CFP® Certificants in the News CFP Board is on a mission to make consumers aware of a certificant’s value to their quality of life. Here is what the CFP Board says about awareness: “CFP Board’s current Public Awareness Campaign, With a CFP® Professional, raises awareness among consumers of the difference that a CFP® professional can make…
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