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Characteristics of a Will
Which of the following statements concerning a Will are correct? A will can be altered, amended, or completely rewritten at any time before a person’s death. A will cannot be rewritten but can be amended at any time by a codicil. A will must be signed by the maker and usually must be witnessed by…
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SEP IRA Contribution Limits
Course: Retirement PlanningLesson 5: Leveraging Nonqualified Plans for Small Business and Not-For-Profit Employees and Owners Student Question: Hello! I am wondering why on this page it says the contribution to a SEP IRA is the lesser of 25% covered compensation or $57,000 (2020), but then it says the combined contribution for SEP IRA and qualified…
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Identifying an Appropriate Power of Attorney
Laura is concerned she will develop Alzheimer’s disease later in life similar to her mother. Which of the following documents should Laura execute to make sure her son is able to handle her financial affairs in the event she does develop Alzheimer’s disease? Durable Springing Power of Attorney Nondurable Springing Power of Attorney Durable Nonspringing…
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Net Earnings from Self-Employment Calculation
Course: Retirement PlanningLesson 2: Qualified Plan Advantages and Disadvantages for Employees and Business Owners Student Question: Hi- On the Contribution base example, it states, “Net earnings from self-employment (NESE:) $140,000 x .9235 = $129,290”. Where did the .9235 come from? I’m sure it was in a previous lesson, I just can’t remember. Thanks, Meg Instructor Response: Hi Megan, Good question! This factor is part of the Internal…
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Rental Property Like-Kind Exchange
William found someone to buy his rental property in Maine. Which of the following properties William would like to purchase as rental property would allow him to complete a Like-Kind Exchange? A golf course rental property in Arizona that William identified 30 days after selling his Maine property A beach rental house at the Cape…
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Good to Know: Six Key Factors in Choosing When to Claim Social Security Retirement Benefits
Good to Know We discussed Social Security claiming age coaching opportunities for savvy Financial Advisors in our last blog. Now we will provide added insights into six key factors that should influence the claiming age decision. A lifetime of careful retirement planning can be undermined with the wrong Social Security claiming age choice. Yet a…
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Retirement Plan Required Minimum Distributions
Course: Retirement PlanningLesson 5: Leveraging Nonqualified Plans for Small Business and Not-For-Profit Employees and Owners Student Question: Hi- I’m trying to distinguish when the required minimum distribution amounts are at 72 years old versus when they are 70½. IRAs are now 72, correct? Is a 401k Plan and a 403b Plan at 70½? Thanks Tiffany Instructor…
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Calculating Realized Compound Yield on a Bond
An investor bought a bond at par that matures in 15 years. The bond pays an annual coupon of $130 and the reinvestment rate is 9%. What is the realized compound yield of this bond? 11.05% 12.55% 13.00% 14.10% CLICK TO REVEAL ANSWER Expand A is the answer. One would anticipate a realized compound yield…
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Closing the Gender Gap in Financial Planning
CFP® Certificants in the News Laura J. LaTourette, CFP® recently posted “How Women Can Help Close the Finance Gender Gap” on CFP Board’s Let’s Make A Plan website. According to Laura, “The disparity between the number of women and the number of men in the financial services industry has been a point of discussion for…
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