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Social Security Retirement Benefits
Course: Insurance PlanningLesson 10: Social Security Student Question: Hi- This question (below) doesn’t quite make sense to me. Could you clarify why the correct answer is D? Robin Elizabeth qualifies for a retirement benefit of $250 and a spouse’s benefit of $400. At her full retirement age, she will receive which of the following? Both $250…
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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…
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CFP Board awards record number of scholarships in 2021
CFP® Board Updates The CFP Board Center for Financial Planning recently released great news regarding scholarships provided for CFP® Certification Education. In 2021, the Center provided more than $300,000 in funds to 80 scholarship awardees. In total, the Center has provided 180 scholarships, totaling more than $800,000 since the launch of the first scholarship program…
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Skewness versus Kurtosis
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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Defined Benefit Plan Reversion Tax
Lucky Star Corp has been extremely lucky with their defined benefit plan as it is currently overfunded. Management decided to terminate the plan while they are overfunded and share the excess with the employees. What amount of reversion tax will Lucky Star Corp have to pay upon termination? 0% 10% 20% 50% CLICK TO REVEAL…
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How to Slash Gift, Estate, and Generation-Skipping Transfer Taxes: Part II
Good to Know This blog is the second of a three-part series that includes: Part I: Reducing the IRS valuation (but not the real value) of Client Assets, Part II: Creative Use of Installment Sales and Specialized Trusts, and Part III: Using Annuities, Charitable Trusts, and Other Techniques. Background-Eliminate Transfer Taxes This blog combines the…
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Unused Premium
Course: Insurance PlanningLesson 8: Gift and Estate Valuation Student Question: Hi- Could you please clarify for me what the unused premium would be in term life insurance? I don’t quite understand how you could not use the premium. Thanks. Thanks John Instructor Response: Hi John, Certainly. A lot of different terms in insurance, to be…
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Deductibility of CEO Compensation
The CEO of Branyan Corporation, a publicly traded corporation, is paid a $3 million salary in the current year. How much of this is deductible by Branyan as a business expense? All $3 million. Salaries are a deductible expense. Salaries for senior executives are never deductible. $1 million. Annual compensation paid to the CEO of…
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ARE FINANCIAL ADVISORS READY FOR THE “ADVICE REVOLUTION?”
CFP® Certificants in the News According to a CFP Board article dated December 21, 2021, “The shift in wealth management toward financial advice and financial planning is undeniable. From managing the change in consumer expectations to recognizing the significant value that financial planners offer, many financial firms have accelerated their adoption of business models that…
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