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Chapter 13 Bankruptcy Means Test
Course: Estate PlanningLesson 13: Case Study Online Student Question: Hi, I am a little confused how one set amount – $100 – is the threshold for means testing a bankruptcy petitioner, when the amount of debt a borrower may owe can vary by large amounts. It would seem the amount left over (income minus allowable…
Defined-Benefit Pension Plans – Actuarial Assumptions
Which of the following statements concerning the various actuarial assumptions used in estimating an employer’s contributions to a defined-benefit pension plan is correct? The higher the assumed rate of investment income, the larger the employer’s assumed contribution rate. The higher the employee turnover or termination rate, the larger should be the employer’s assumed contribution rate.…
Get the CFP® Certification: 3 Key Reasons
CFP® Certificants in the News CFP® Certification is fast becoming a “must-have” designation for at least three reasons: Client awareness, Fiduciary Ethical Standard, and Doing well by doing good. Client Awareness An impressive 83% of consumers are aware of the CFP® Mark,1 far outstripping consumer awareness of other financial planning designations. CFP Board played a…
Corporate Bonds in the Marketplace
Course: Investment PlanningLesson 9: Fixed Income Securities Student Question: Hi, Just a question about Corporate Bond Funds. Gathering my information from the book, it seems they are “debt notes” insured to keep the company going. If they are not repaid the person who accepted the “bonds” can sometimes take assets in the company, like equipment…
Saving for a Retirement Goal
Erika wants $50,000 a year in today’s dollars in retirement. She anticipates retiring in 10 years and living in retirement for 30 years. Erika can earn 7% on her investments and she expects inflation to average 4%. Approximately how much should Erika have saved by the day she retires to meet this goal? $913,000 $983,000…
Avoid Turning $1,000,000 into $12,000
Good to Know Imagine an individual investor passionate about a specific stock (it happens more often than you might think). Assume the investor’s portfolio is worth $2 million, but $1 million is in just one stock. How could that $1,000,000 concentration hemorrhage into only $12,000 in just over one year? Sadly, that’s precisely what happened…
Donating Short-term Appreciated Securities
Course: Income Tax PlanningLesson 15: Property Transactions Student Question: Dear Greene Consulting Team – In the lesson, deducting donations of ‘cash’ versus ‘long term appreciated securities’ are differentiated. I’m curious about “short term appreciated securities”. In other words, if I own a stock – bought at $10,000 and it’s worth $50,000 when I donate, but…
Margin Call
Your client purchased Beta, Inc. publicly traded shares at $150 per share with an Initial Margin of 50%. The maintenance margin is 25%. A margin call will occur below what price per share? $87.50 $100.00 $112.50 None of the above CLICK TO REVEAL ANSWER Expand B is the answer. Margin Call Price = Initial Purchase…
Independent RIAs: Three Trends to Thrive
CFP® Certificants in the News CFP Board reports in its March 24, 2022 article that “Registered investment advisor (RIA) firms are an important factor in the future of the financial planning profession…” The article discusses how three trends offer independents a path to continued growth including: Hyper-specialization, Increased personalization and Digitalization. The text in quotation marks…