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CFP® Certificants in the News: Are You Committing Financial Planning?
CFP® Certificant in the News A CFP® Certificant is subject to a greater duty, the duty to adhere to the Practice Standards, to clients when providing Financial Planning vs. when providing Financial Advice. As we will see in just a moment, a Certificant may be subject to the Practice Standards based upon what the client…
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Child Care Credit Calculation
Course: Income Tax PlanningLesson 14: Tax Credits, Payments, and Forms Student Question: Could you show me the calculation for Question 3? I calculate 20% of $12,000 , which is $2,400. Emily’s job requires that she put her three children, all under the age of 13, in daycare. She is unmarried and files as Head of…
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Joint Tenant Transfer
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…
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Three Perilous Long-Term Care Mistakes That Can Wreck Your Retirement
Good to Know “What you don’t know can’t hurt you.” That common but deeply flawed bit of conventional wisdom is based upon a comment made almost 450 years ago. It was flawed in the 1500s and it remains flawed today. As but one insight, any retirement plan that ignores long-term care risk could be a…
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How Many Tax-Free IRA Rollovers Per Year?
Course: Income Tax PlanningLesson 1: Using IRAs to Build and Distribute More Retiremnt Income Student Question: Is it okay to roll over ( via direct trustee, not 60–day) from Traditional to Roth several times throughout the year if needed? Thanks, Matt Instructor Response: Great question Matt. The IRS limits tax-free IRA rollovers to one per…
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Calculating Retirement Need
Erika wants $50,000 a year in today’s dollars in retirement. She anticipates retiring in 10 years and living in retirement for 30 years. Erika can earn 7% on her investments and she expects inflation to average 4%. Approximately how much should Erika have saved by the day she retires to meet this goal? $913,000 $983,000…
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CFP Board hosting Diversity Summit in November 2019
CFP Board Updates The CFP Board Center for Financial Planning will be hosting its second annual Diversity Summit on November 13, 2019, in Washington, D.C. The purpose of the summit is to increase the racial and ethnic diversity of the financial planning profession. Last year, over 300 thought leaders attended the inaugural summit. The agenda…
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Multiple Insurance Provider Claim Solutions
Course: Insurance PlanningLesson 2: Fundamentals of Insurance Student Question: I’m having difficulty seeing the difference between pro-rata liability, contribution by equal shares, and primary and excess. Could you explain the review exercise? Review Exercise Three companies insure Josh’s $250,000 house. Insurer A has it insured for 10%, insurer B for 35%, and insurer C for…
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Tax Law Sources
Sheila found four different sources to support her position for deducting an expense on her individual income tax return. Which of the following sources provides the least support for her position? Treasury Regulation Private Letter Ruling Revenue Ruling Internal Revenue Code CLICK TO REVEAL ANSWER Expand B is the answer. Private Letter Rulings are only…
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