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Save Hundreds on CFP® Exam Registration and Resource Costs
CFP® Board Updates Here’s your chance to save hundreds of dollars in CFP® Exam fees and receive free resources for the next two CFP® Exams. Here’s an excerpt from a recent CFP Board email: “Your next chance to take the CFP® Exam is during the 8-day testing window from September 22-29, 2020. When you sign up by August 25 , you’ll…
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IRA Distribution Rules
Course: Retirement PlanningLesson 1: Using IRAs to Build and Distribute More Retirement Income Student Question: Hi I was doing a little further reading on the new IRA distribution rules and wanted to see if “conduit” or “accumulation” trust rules will be necessary information for the exam? As I understand it, trusts as beneficiaries are held to the “five-year rule” or the “payout rule” depending on…
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Debt Discharged in Chapter 7 Bankruptcy
Chuck lost his job last year when his company moved their factory overseas. Chuck has been unable to find another job and had to file for a Chapter 7 bankruptcy. Which of the following debts can be discharged in the bankruptcy? $10,000 of rent he owes his landlord $20,000 of taxes he owes the IRS…
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Good to Know: Financial Planning, CFP® Certificants, and Implementation Responsibilities
Good to Know Here’s a quick quiz question for CFP® Professionals who provide financial planning services or for those preparing for the CFP Board Exam: A CFP® Professional who is providing financial planning services has no implementation responsibilities for financial products purchased as a result of recommendations if the Professional does not sell financial products.…
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Current Ratio and Primary Residence
Course: Fundamentals of Financial PlanningLesson 3: Personal Financial Statements Student Question: What role does the client’s primary residence play in the current ratio calculation? Is their outstanding mortgage loan amount considered a liability? Candace Instructor Response: Hi Candace, That’s a great question. The residence is not considered a liquid asset and is excluded from “assets” for the current ratio. …
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Calculating Gain in an Installment Payment Transaction
Which of the following individuals would be most likely to need to register with the SEC under the Investment Advisers Act of 1940? Adam who retired last year from a big brokerage house, but he recently started providing services to 12 clients who live in his neighborhood that he met while out golfing. Belinda who…
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Remote Proctoring for September 2020 CFP Board Exam
CFP® Certificants in the News You’ve heard it said that “you must be present to win.” That expression was never truer than in passing the CFP Board Exam. However, you no longer have to be present in person at a testing center to take the exam. On July 16, CFP Board issued a press release…
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Bilateral Contracts in Insurance
Course: Insurance PlanningLesson 2: Fundamentals of Insurance Student Question: Regarding the Bilateral Contact section, how is an insurance contract not a bilateral contract? If I’m reading correctly, it states that a bilateral contract is one in which both parties have responsibilities. In an insurance contract, the insurer has to provide insurance and the insured pays the…
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Calculating Gain in an Installment Payment Transaction
George Sloan sold farmland valued at $200,000 to his son, Frank. Frank paid $40,000 at closing and signed an installment obligation for the remainder of the purchase price to be paid over ten years at 10% interest on the outstanding balance. If Frank sells the property to a second purchaser for $210,000 cash 20 months…
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