Blog
Annual Return and Compounding
Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: Hi- My question relates to being able to clearly distinguish when the CFP Board exam will require an annual, or other period for the answer.Question 5(b) asks: “What is the rate of return on Investment 2 using daily compounding?” What is the annual rate…
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Tax Saving Strategies
Dan and Karen Burles have 2 children, Coy (age 12, student) and Roger (age 21, student). Dan and Karen own a security equipment sales and installation business, an LLC. Dan and Karen are in the highest income tax bracket. They have a portfolio with $130,000 of municipal bonds (annual income $5,200), $80,000 of corporate bonds…
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Guide to Careers in Financial Planning
CFP® Certificants in the News CFP Board’s CENTER FOR FINANCIAL PLANNING publishes an intriguing series of insights into career paths for the new certificant, career changer, and even experienced certificants. These insights can be found in the GUIDE TO CAREERS IN FINANCIAL PLANNING. The GUIDE identifies over six career paths, helps clarify the types of…
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Investments Held by Exchange Traded Funds
Course: Insurance PlanningLesson 19: Immediate Annuities – A Tax-Advantaged Income Planning Tool Student Question: Hi- The text on this page says the annuities don’t hold mutual funds or ETFs. What are they holding to provide an S&P “type return?” The text goes on to discuss components that sound a lot like ETFs (mid value, large…
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Ratio Percentage Test
Which of the following statements concerning SEP and Keogh plans is not correct? A SEP must meet fewer reporting requirements than are imposed on a Keogh plan. A SEP is not considered by the IRS to be a qualified plan as is a Keogh plan. A SEP is similar to a defined-contribution plan; a Keogh…
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Not All Christmas Presents are Welcome: Four Potential Tax Changes to Monitor
Good to Know Let’s face it-it may be easier to handicap who’ll win the Presidency in 2024 than to forecast how, or even if, your taxes will change over the next few months. This blog will point out a select few areas that could change your tax landscape dramatically, including: Paying more capital gains tax,…
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Real Estate Income and IRA Contributions
Course: Retirement PlanningLesson 1: Using IRAs to Build and Distribute More Retirement Income Student Question: Good morning! This page states that rental income is not included in the definition of earned income. If the client is a professional real estate developer whose income is derived mainly from rental income, would they be able to contribute…
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Black-Scholes Option Valuation Model
Frank carries an H0-3 policy with $400,000 of coverage and a $1,000 deductible. It would cost $600,000 to rebuild Frank’s house. How much will his insurance company pay on a $100,000 claim related to a fire that started in Frank’s kitchen? $79,000 $82,333 $83,333 $99,000 CLICK TO REVEAL ANSWER Expand B is the answer. Frank…
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Recent Surveys Indicate High Satisfaction Among CFP® Professionals
CFP® Board Updates A recent survey of CFP® Professionals indicates continued high satisfaction with their career choice as a financial planner. In addition, the survey revealed CFP® Professionals continue to see positive impact in their career from having achieved the certification. A few of the key findings, which highlight just a small portion of the…
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