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Financial Planning and Happy Marriages
Good to Know Question: What can be a more common cause for divorce than infidelity? Answer: Unresolved money conflicts.1 While being on the same page over money may not guarantee the coveted fiftieth anniversary, fighting over money can undermine marriages well before the golden anniversary. The issues vary, but communication around marital finances can…
Life Insurance in a Cross-Purchase Buy-Sell Agreement
Course: Insurance PlanningLesson 17: Business Uses of Life and Disability Insurance Student Question: I have a quick question regarding buy/sell agreement. I’m not clear on who would pay the premiums on disability and or life insurance on the principals and the key employees? Instructor Response: Great question. A buy-sell agreement relates to owners of the…
Refinance Payment Calculation
Dale refinanced his home mortgage to a 30 year fixed mortgage with biweekly payments. How much is each payment if he owed $350,000 at the time of the refinance and the interest rate is 3%? $680 $771 $1,136 $1,242 CLICK TO REVEAL ANSWER Expand A is the answer. Brandon pays his mortgage every two weeks…
Get the Bear, or the Bear Gets You
Good to Know Loss aversion, taken to its extreme, can wreck long-term retirement planning and investment success. We’ll unpack what drives “irrational” loss aversion, identify a dangerous decision error, and illustrate a potential guardrail to remain on track with our long-term investing plans. “Irrational” Loss Aversion We’re a logical, evolved species, right? Before you answer,…
Clarifying Tort Liability
Course: Retirement PlanningLesson 2: Qualified Plan Advantages and Disadvantages for Employees and Business Owners Student Question: Hi, I have a few questions regarding tort liability. Negligence is Tort Liability? Why isn’t it contractual? Are all torts criminal in nature? Instructor Response: Hi, Good questions here. See below for my response to each. Yes Tort law…
Transfer of Interest in Property Held in Joint Tenancy
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…
CFP Board Announces Dates for 2022 Conference
CFP® Board Updates The 2022 CFP Board Conference will be the first year for a combined conference of CFP Board Registered Programs and the Annual Firms Summit. This exclusive conference is an intersection of today’s employers of CFP® Professionals and the colleges and universities preparing the CFP® Professionals of tomorrow. The conference will be held…
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.…