Blog
Impact of Retirement Timeline
Course: Retirement PlanningLesson 1: Using IRAs to Build and Distribute More Retirement Income Student Question: I am confused about this calculation (question below). If I use 20 years instead of 15 years, my need is now $90,305 from my own savings. The math makes sense but the answer does not. If I have an additional 5 years to save, shouldn’t the required out-of-pocket cash be less…
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Saving for a Retirement Goal
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 Removes Compensation Search Function
CFP Board Updates On March 2, 2020, the CFP Board notified all professionals that the compensation search function had been removed from the “Find Your CFP® Professional” tool on the letsmakeaplan.org website. The key decision point, according to the CFP Board, was that based on the new Code and Standards, all CFP® professionals are expected…
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Notifying Clients of Bankruptcy
Course: Fundamentals of Financial PlanningLesson 9: CFP Board Regulatory Requirements Student Question: For sub-section iv of Standard A-10(a), I’m a bit confused as to who that applies to. Does this apply to the certificate holder or the client? Will Instructor Response: Hi William- Thank you for the question. In A(10)a-IV, the CFP® certificant must provide this information to the client. Bruce Student Question: I…
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Alimony and Gross Income
Cindy received the following payments from her ex-husband Jim under the terms of the divorce decree: $10,000 of back alimony payments from last year $20,000 of back child support payments from last year $30,000 of alimony payments for this year $40,000 of child support payments for this year How much does Cindy have to include…
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How to Avoid or Reduce Student Loan Debt
Good to Know The juggernaut of student loan debt is a sad fact of life today for many families. But what if you could avoid or reduce student loan debt for you, your family and your clients? If that sounds unlikely, join us as we dispel three common myths that just might lighten the debt…
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Means Test (Bankruptcy)
Course: Fundamentals of Financial PlanningLesson 4: Managing Cash Flow and Debt Student Question: I’m making sure I understand the means test. If the person is trying to file Section 7 to get rid of debt but the means test shows they can cover their allowable expense, will they be forced to file Section 13 and have to do a repayment plan? It appears the means test is…
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Carryover of Losses
The following information has been provided by a client for income tax purposes: $45,000 salary from an S Corporation where the client is a vice-president $3,500 loss from the S Corporation $1,500 loss from a 3% interest in a limited partnership $1,200 loss from a 10% interest in Middletown Partnership in which the client does…
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CFP® Certificants in the News: Free CFP Board Practice Exam
CFP Board Exam Registrants – Be sure to take CFP Board’s Practice Exam What could be better for exam preparation than taking a full six-hour, timed practice exam offered by the CFP Board? Receiving this resource free is better! The cost of CFP Board’s full, 170-question practice exam is normally $249. If you registered to…
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