Blog
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…
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…
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…
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…
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…
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…
Coverdell ESA versus 529
Course: Fundamentals of Financial PlanningLesson 7: Educational Aid and Funding Calculation Student Question: Hello- So is there ever any benefit to choosing a Coverdell ESA over a 529 Plan? It seems the big difference in the two is that the Coverdell has an AGI limit, so why would you just not always steer clients towards 529 Plans…
Basis of Inherited Property
Bill Farmer bought 1,000 acres of farmland for $300,000. When his oldest son married, Bill gave him 400 acres for a farm. When Bill died this year, the remaining 600 acres were divided in Bill’s will between his two younger sons. The 600 acres had a fair market value at Bill’s death of $600,000. Which…
Investment Risk on the CFP Board Exam: Part II
Good to Know This blog is the second in a four-part series that includes: Part I: When to trust the “mean” return, Part II: Using standard deviation to manage investment risk, Part III: Skewness-Do we want negative or positive skew in our portfolio?, and Part IV: Kurtosis of a return distribution-Is more kurtosis a good…