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Earnings Test Calculation
A client turns age 73 in 2026 and must begin taking required minimum distributions (RMDs) from her traditional IRA. Which of the following statements is CORRECT regarding her first RMD? It must be taken by December 31, 2026 It may be delayed until April 1, 2027 It is not required until age 75 It can…
AI in Financial Planning: Where It Actually Adds Value — and Where It Doesn’t
CFP in the News, Good to Know Artificial intelligence is quickly becoming part of the financial planning conversation. The problem is not a lack of interest. It’s a lack of clarity. Ask ten advisors how AI will impact financial planning, and you’ll get ten different answers-ranging from ‘transformational’ to ‘overhyped.’ Both can be true. The…
Dependent Care Assistance Plan
Course: Retirement PlanningLesson 9: Building Retirement Wealth by Maximizing Fringe Benefits Student Question: Is a Dependent Care Assistance Plan (DCAP) funded by a Flexible Spending Account the same thing as a Dependent Care FSA? If not, could you provide some additional info as to how the two would work together (could an individual utilize both…
Earnings Test Calculation
An employee pays premiums for an individual disability income insurance policy with after-tax dollars. The employer does not contribute to the policy. If the employee becomes disabled and begins receiving benefits, how will the benefits be taxed? Fully taxable as ordinary income Partially taxable based on employer contributions Tax-free Subject to capital gains tax rates…
Retirement Income Planning Is Still Misunderstood — Even by Professionals
Good to Know Retirement income planning is one of the most discussed areas in financial planning. It is also one of the most misunderstood. Ask a room of advisors how they approach retirement income, and you’ll hear familiar answers: The 4% rule Sequence of returns risk Bucket strategies None sufficient on their own. The problem…
Internal Rate of Return Calculation
Course: Fundamentals of Financial Planning Lesson 5b: Using the HP 10bII Calculator Student Question: In Example 2, the solution given has 6 years (including CF0) instead of 5. I believe the first year of Carl’s coin purchase should be CF0, but the fifth year – which includes a purchase and a sale – should be CF4.…
Earnings Test Calculation
In 2026, a married couple filing jointly has taxable income of $90,000, which includes $10,000 of long-term capital gains. What federal tax rate applies to the $10,000 of long-term capital gains? 0% 15% 20% Ordinary income tax rates CLICK TO REVEAL ANSWER Expand A is the answer For 2026, the 0% long-term capital gains threshold…
The Fiduciary Standard in Practice: Where Advisors Still Get It Wrong
Good to Know Most advisors would tell you they act as fiduciaries. Many believe it. Some even document it. But in practice, fiduciary failures rarely come from intentional misconduct. They come from misunderstanding what the standard actually requires. The CFP Board’s Code of Ethics is clear: CFP® professionals must act as fiduciaries at all times…
Late Medicare Enrollment Penalty
Course: Insurance PlanningLesson 10: Fundamentals of Social Security and Medicare Student Question: Hi, Under the ‘late enrollment penalty’ link, there is a example given by Medicare. It states that there is a 20% penalty because 30 months had lapsed, or at least 2 12-month periods post initial enrollment had lapsed. The date given for initial…