# Blog

## CFP® Practice Question of the Week: Tax Liability

By Keir

Kevin’s non-qualified stock options are as follows: 2,000 shares: strike price \$34 5,000 shares: strike price \$30 Current stock price: \$65 Kevin’s tax bracket: 42% (federal and state) Kevin has decided to exercise the above stock option awards, which will expire in the next 2 years. Assuming he exercises them today, what is his tax…

## Student Question of the Week: Income Tax – Gross Income Calculation

Student Question from: John C.Course:  Income Tax – Gross Income Calculation Student Question: Hi.  I just wanted to verify that the employee premium in the example below is not prorated between the “tax-free” and taxable insurance coverage. And, if it’s not, why?    Here is my calculation:  5 x 4.5% + 7 *0.5 % = 26%…

## Student Question of the Week: Income Tax

Student Question: Student Question from: John C. Course:  Income Tax Question:   I had a quick question about taxpayer return penalties.  In the Review Exercise below, I’m getting an answer of \$780, but you all are showing an answer of \$810.  Why isn’t my math adding up?  I’m counting 7 months for April to October.   Here is…

## CFP® Practice Question of the Week: Investments

By Keir

A young, single client approaches a CFP® professional with \$5,000 stating that he would like to develop a financial plan and invest in the market. This is his first experience investing and he would like help choosing an appropriate account. What is the CFP® professional’s most appropriate course of action? A) Open a brokerage account with margin…

## Student Question of the Week: Fundamentals – Calculator

Student Question from: Susan M.Course:  Fundamentals – Calculator Student Question: In example 3 (shown below), why do we use monthly instead of annual for the interest and period of time?  Example 3: Bill wants to purchase enough life insurance to provide his family with an inflation-hedged income of \$4,000 per month for 25 years. You…

## CFP® Practice Question of the Week: Transfer Tax

By Keir

A client, Tom, informs a CFP® professional that his daughter, Susie, graduated from college last month and landed her first job. Tom wants to establish a Roth IRA for Susie. Tom wants to make a \$5,000 contribution for Susie and explains that she does not know about investing and probably would not have the money…

## Good to Know: Financial Advisor is 6th Best Job in America

According to CNN Money being a financial advisor is the 6thbest job in the United States.  That is no surprise to people already in the industry, but may come as a surprise to those who aren’t familiar with the normal duties of a financial advisor.  So what makes it such a great job?  Primarily, it’s the satisfaction…