Blog
CFP® Certificants in the News: Women’s Initiative (WIN)
CFP® Certificant in the News According to the CFP Board, “the percentage of women CFP® professionals has remained flat at 23 percent for at least a decade.” Based upon CFP Board commission researched aimed at increasing that percentage, the “WIN Council” and “WIN Advocates” were created by the Board. Key information follows: “WIN Council Following…
Read More
Expanded Annual Exclusion Amount
Course: Estate Planning Lesson 5: Transfer Taxation II – Lifetime Transfers Student Question: Hi Bruce, I’m reading about the “expanded Annual Exclusion Amount of $155,000.” Just so I’m clear, is this an expansion from the “regular” $15,000 Annual Exclusion Amount? And what is it for? Thanks! Kevin Instructor Response: Hi Kevin, You are correct. The…
Read More
Owner of a Grantor Trust
In which of the following situations would the grantor of a trust not be considered the owner? The grantor has a reversionary interest in the trust, of which the grantor’s son is the sole beneficiary, but the grantor cannot exercise this power until eight years after transfer of property to the trust. The grantor retains…
Read More
Good to Know: Dangerous Mistakes In Retirement – Excessive Annual Withdrawal Rates
Good to Know Six of every ten Americans fear running out of money in retirement more than death. This is the first of three blogs addressing financially dangerous and avoidable retirement mistakes. Today’s focus is upon avoiding excess withdrawal rates from one’s retirement portfolio. Before we begin, let’s address the common phrase “safe withdrawal rate.”…
Read More
QTIP Marital Trust
Course: Estate Planning Lesson 10: Application of Estate Planning Concepts Student Question: HI Bruce- Can you help clarify for me seemingly contradictory information in the two sentences below regarding “disinheriting children”? The first sentence seems to imply that the surviving spouse could disinherit children. However, the second sentence states that QTIPs are often used to…
Read More
Calculating Gross Income in an S and C Corporation
A client received an annual salary from his employment of $40,000. He was a 50% owner of both a C Corporation and an S Corporation. The C Corporation had net profits of $20,000, and the S Corporation had income of $10,000. Neither corporation made a distribution. The client’s revocable trust had income of $5,000 but…
Read More
How To Protect Your Digital Assets
CFP Board’s November 2019 “Let’s Make a Plan” newsletter addresses digital security and more There’s never been a time in history when it was more important to keep online financial records private. For example: A 2019 Pew Research Center FACTANK report indicates 9 in every 10 Americans use the internet for online shopping and social…
Read More
Contingent Business Interruption versus Extra Expense Insurance
Course: Insurance Planning Lesson 6: Commercial Property and Liability Insurance Student Question: Can you please provide an example of contingent business interruption and extra expense insurance? Laura Instructor Response: Hi Laura, Good question. Here’s how contingent business interruption insurance might apply. You own a nationwide chain of jewelry stores that specialize in gold/palladium alloys. Your…
Read More
Defined Benefit Pension Plan Contributions
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 rate.…
Read More