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Millenial and Gen Z Clients Need Financial Advice
CFP® Certificants in the News According to a recent CFP Board article, financial opportunity abounds in serving the Millenial and Gen Z generations. For example, the article reveals that “more than half of Americans were Millennials or younger as of July 2020. While the term ‘Millennial’ has been synonymous with ‘young adult’ throughout much of the…
Supply and Demand
Course: Fundamentals of Financial PlanningLesson 2: Economic Concepts and Consumer Protection Laws Student Question: Hello- I missed the below question because I thought number 2 was false. Wouldn’t price and demand move in a correlated way? The more the demand the higher the price? Which of the following statements concerning supply and/or demand is/are true?…
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…
CFP Board’s Disciplinary Actions: Implications for the CFP Board Exam
Good to Know Forewarned is forearmed when studying for the CFP Board exam or choosing a CFP® Certification program. In its latest release of public discipline, CFP Board telegraphs its continued priority for enforcing ethical conduct. Recent disciplinary actions include public censures, suspensions, and revocations. Public Censures Public censures were issued for: Selling securities without…
Maximum Family Benefit
Course: Insurance PlanningLesson 10: Social Security Student Question: Hello- Does the maximum family benefit apply to a husband and wife that are both fully insured if the combined total between the two exceeds the maximum family limit? If I understand correctly, the maximum family limit only applies if there are beneficiaries within the family receiving…
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…
CFP Board Releases New Practice Exams
CFP® Board Updates For several years, the CFP Board has provided CFP Board exam practice exams to help students prepare for the board exam. Those exams have now been updated to mirror the format and content coverage of the CFP® Board Exam, which provides the closest possible experience to exam day. In addition, upon completion…
Ownership of Property in a Trust
Course: Estate PlanningLesson 3: Understanding Trusts and Trust Documents Student Question: Hello- Perhaps a slightly mundane question, but here we go: It had been my understanding that property in a trust was held and owned by the trust itself, as a separate legal entity. However, several times in this course there has been reference to the trustee having…
Modified Endowment Contract Loan
Alan paid $70,000 for a MEC policy when he was 50 years old. What are the income tax ramifications if he takes a $15,000 loan 3 years after purchasing the policy? The policy was worth $78,000 at the time of the loan. Alan would not have to report any taxable income or penalty. Alan would…