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Plan Monitoring and Updating Responsibility
Course: Fundamentals of Financial PlanningLesson 9: CFP Board Regulatory Requirements Student Question: In Lesson 1, for Step 7, I have that a certificant is responsible for monitoring and updating only if explicitly called for in the scope of the engagement. In Lesson 9, I’m reading that the certificant is responsible unless explicitly excluded. Which is…
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Avoid 5 Score-Killing Mistakes on the CFP® Exam
CFP® Certificants in the News Those taking the CFP® Exam consistently lose vital points in 5 key areas: Failure to enroll in a review course, Lack of a disciplined study plan, Failure to answer enough practice questions, Failure to know the Code of Ethics and Standards of Conduct, and Lack of an exam-taking strategy We…
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Medicare Part A Expenses
Which of the following individuals currently covered by Medicare Part A will not have any of their expenses covered by Medicare Part A? Evan – who spent one week in hospice care before losing his battle with cancer. Felicia – who was treated by her doctor for strep throat Greg – who needed a walker…
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Good to Know: What Does Panic Selling and a Lion Have in Common?
Panic selling is painfully real. As but one example, S&P 500 investors lost almost 60% from 2007 to 2009 in the wake of the sub-prime mortgage default crisis. The chart to the right illustrates the breath-taking plunge of the S&P 500 from almost 1600 to 650 in less than 18 months. Here’s a sobering observation…
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Defining Basis Points
Course: Investment PlanningLesson 15: Fundamentals of Derivatives – Futures and Options Student Question: Can you please explain what Basis points are and how/why they are generally used? Thanks Lana Instructor Response: Hi Lana, There are 100 basis points in 1%. Basis points are merely a common method of measuring investment fees or returns. An exchanged-traded fund may charge…
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Underinsured Dwelling
Frank carries an H0-3 policy with $400,000 of coverage and a $1,000 deductible. It would cost $600,000 to rebuild Frank’s house. How much will his insurance company pay on a $100,000 claim related to a fire that started in Frank’s kitchen? $79,000 $82,333 $83,333 $99,000 CLICK TO REVEAL ANSWER Expand B is the answer. Frank…
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CFP Board Registered Programs Conference Goes Virtual
CFP Board Updates The CFP Board recently announced the 2020 Registered Programs Conference will be held virtually this year on December 15 and 16, 2020. The conference provides the opportunity for approved educational programs to receive valuable updates from the Board, as well as connect with colleagues and the Board. To learn more about the…
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Donating Short-Term Appreciated Securities
Course: Income Tax PlanningLesson 15: Property Transactions Student Question: Dear Greene Consulting Team – In the lesson, deducting donations of “cash” versus “long term appreciated securities” are differentiated. I’m curious about “short-term appreciated securities”. In other words, if I own a stock – bought at $10,000 and it’s worth $50,000 when I donate, but I’ve only owned it 6 months…
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Calculating Education Need
Nancy recently received $250,000 from her mother’s life insurance policy. She wants to use a portion of the money to fund her son’s college education that currently costs $10,000 a year and she anticipates an 8% yearly increase. Nancy can earn 7% on her investments and the overall inflation rate is 3%. Nancy’s son will…
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