Blog
Accounting for Inflation
Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: Good afternoon. Can you explain why we didn’t take inflation into consideration for the second calculation in the first problem? Dawn wants to have $25,000 in today’s dollars for a round-the-world cruise when she retires 11 years from now. She assumes she can earn…
Read More
Defining a Stock Spread
Which of the following combinations correctly describes a spread? A combination of a short sale and a purchase of a call for the same stock A combination of buying and selling calls on the same stock with different expiration dates and exercise prices A combination of a put and a call on the same stock…
Read More
2021 CFP Board Exam Dates Set
CFP Board Updates The CFP Board has confirmed exam dates for the three 2021 CFP Board Exam cycles. The CFP® Exam is offered three times a year across 8-day testing windows that take place in March, July and November. You’ll be able to select your test day and testing location from a network of convenient…
Read More
Calculating Late Filing/Paying Penalties
Course: Income Tax PlanningLesson 1: Introduction to Taxation Student Question: For this question, could you send me the math behind finding the answer? I want a better understanding of how the penalty was assessed. Review Exercise: Jerry’s taxes were due April 15th. He filed his return in October of the same year and paid his…
Read More
Transfer of Interest in Property Held in Joint Tenancy
Gary Chapelle owns a duplex with his brother in joint tenancy with right of survivorship. Gary would like to pass his interest in the property to his son Bill and Gary has provided in his will that his interest in the duplex will pass to Bill. Which of the following statements concerning the transfer of…
Read More
The Qualified Business Income Deduction – Part I
Good to Know The Section 199A deduction, popularly referred to as the 20% Qualified Business Income deduction, was enacted to reduce the disparity in income tax rates between C Corporations and “pass-through businesses.” There is no entity level income tax in pass-through businesses – business gains and losses “pass through” to the business owner’s personal…
Read More
Internal Rate of Return Calculation
Course: Fundamentals of Financial PlanningLesson 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.…
Read More
Actuarial Assumptions in Defined Benefit Contribution Plans
Which of the following statements concerning the various actuarial assumptions used in estimating an employer’s contributions to a Defined Benefit Pension Plan is correct? The higher the assumed rate of investment income, the larger the employer’s assumed contribution rate. The higher the employee turnover or termination rate, the larger should be the employer’s assumed contribution…
Read More
2021 FINANCIAL PLANNING FORECAST
CFP® Certificants in the News According to a January 11, 2021, report by CFP Board, “…nearly 1 in 5 CFP® professionals reported that clients leaned on them as a financial therapist first and a financial planner second [in 2020]…”. Other key trends were reported by CFP Board, including: The rise of virtual financial planning “Advice…
Read More