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Solving for Annual Equivalent Rate
Course: Retirement PlanningLesson 3: Employee Protections and Employer Responsibilities in Qualified Plans Student Question: I am confused as to how to get the correct answer for question number 4: Jackie invests her bonus at the beginning of this calendar year. If she earns 7% compounded monthly, what is the annual equivalent rate? Round your answer to…
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Sale of Home by Surviving Spouse
April’s husband Jay died 5 years ago when their home was worth $600,000. Due to the soft real estate market, April kept the house until the housing market recovered. She finally sold the home this year for $950,000. What is the amount of April’s taxable gain or loss if she bought the home jointly with…
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What You Don’t Know About Social Security Can Hurt You
Good to Know Social Security benefits are key to most Americans’ quality of financial life during retirement. Yet, an alarming number of those approaching retirement do not have a basic understanding of Social Security benefits. Twelve basic questions were posed to 1,5001 pre-retirees to gauge their Social Security knowledge. Take the quick quiz below to…
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401(K) Deferral Example
Course: Retirement PlanningLesson 3: Employee Protections and Employer Responsibilities in Qualified Plans Student Question: I failed to understand how $11,600 would be the correct answer to the question below. Can you go through the actual calculation? Belinda Bigbux (age 40) earns $1,000,000 annually as a test pilot. She wishes to defer 10% of her compensation…
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OASDI Disability Income Benefits
Which of the following statements concerning OASDI disability income benefits is correct? Disability is defined as the inability to perform all major duties of the insured’s own occupation. Unless specifically exempted, a waiting period of 12 months must be satisfied. If the disabled worker is also receiving workers compensation benefits, the full OASDI benefit is…
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ALERT for CFP® Candidates – Add Points to Your Score
CFP® Certificants in the News Those planning to take the CFP® Exam must be aware of how recent changes to the exam structure could affect your score. We will identify the exam change and the takeaway that could add points to your score. The Exam Change The CFP® Exam was traditionally structured as a 170-question,…
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Value of Life Insurance in Buy-Sell Agreements
Course: Insurance PlanningLesson 17: Business Uses of Life Insurance Student Question: Do Buy-Sell Agreements account for projected growth of the company? Do the life insurance benefits increase over time to account for projected growth, or perhaps can they invest and grow conservatively to keep up with inflation (or COLA on the plan)? Thanks, Thomas Instructor…
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Section 179 Expensing
Which of the following expenses can Vicki expense entirely under Section 179 expense assuming she meets all other requirements? $10,000 for a new coat of paint in the lobby and office $20,000 for a new roof on the warehouse $30,000 for vacation $25,000 for new computers CLICK TO REVEAL ANSWER Expand D is the answer.…
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5 Habits of Successful CFP Exam Takers
CFP® Certificants in the News This blog is dedicated to CFP® Candidates, especially those planning to take the CFP Board Exam soon. What better place to begin planning than planning to pass the CFP Board Exam? By the way, hope is not a plan. Hope is a wonderful quality but we need a specific, sequential…
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