News & Updates
September 2021 CFP Board Newsletter
CFP® Board Updates The CFP Board periodically releases a newsletter summarizing recent updates, changes, and news. The September 16, 2021 edition includes: Survey of CFP® Professionals Shows Continued High Satisfaction with Career Choice, CFP® Certification CFP Board Requests Comments on Proposed Revisions to Sanction Guidelines and Procedural Rules by September 21 CFP Board Imposes Sanctions…
Read MoreTax-Avoidance On Steroids—Private Placement Life Insurance
Good to Know CFP Board expects a certificant to serve a spectrum of client demographics based upon factors such as age, gender, culture, and net worth. This blog summarizes a unique income tax strategy for high and ultra-high net worth clients. Private Placement Life Insurance (PPLI) can help a client: Avoid income tax on investment…
Read MoreCFP Board Encourages Pro Bono
CFP® Board Updates Pro Bono is typically thought of as something attorneys provide. While the work attorneys do to help those in difficult legal situations without access to competent support, it’s just as important that those in financial services provide a similar benefit when possible. If you’re a CFP® Professional with a desire to help…
Read More5 Habits of Successful Candidates for CFP® Certification
Good to Know The 5 habits to passing the CFP® exam are not complicated. In fact, they’re quite simple in concept. But here’s the rub, simple is not always easy. For example, here’s the simple equation for losing weight: Calories out > Calories in = Weight loss Yet seven of every ten Americans, the author…
Read MoreSpeak Now or Forever Hold Your Peace—CFP Board’s Proposed Nondisclosure Sanctions
CFP® Certificants in the News CFP Board’s recent background and disclosure review project resulted in a higher-than-expected number of reviews, investigations, and disciplinary actions taken against CFP® certificants. Solely in the author’s opinion, the scope and depth of the disclosure violations, when coupled with the CFP Board’s strategic goal of utmost public trust, may have…
Read MoreWhat Do Sabre-Toothed Tigers and Investments Losses Have in Common?
Good to Know We introduced the concept of Behavioral Finance in the author’s most recent blog. Specifically, we learned that financial decisions that are rational to our subconscious, primal survival instincts can be breathtakingly irrational to our conscious, objective brains. One of the most perplexing and frustrating examples of this phenomenon is buying high and…
Read More$1 million gift to Center for Financial Planning
CFP® Board Updates The CFP Board Center for Financial Planning seeks to create a more diverse and sustainable financial planning profession. The center addresses profession-wide challenges in the areas of diversity and workforce development by bringing together industry professionals, educators, firms, and experts to collaborate and conduct and publish research in these areas. On August…
Read MoreClient Psychology
Good to Know Client decisions, including financial ones, may be driven more by psychology than just cold, hard, rational facts. The chart below identifies four powerful psychological influences. Client Psychology—Influences Values Fundamental personal beliefs Attitude The tendency to view an investment positively or negatively based on our beliefs and experience Bias A behavioral tendency Heuristic…
Read MoreCFP Board Discipline—Learning from Others’ Mistakes
CFP® Certificants in the News This blog will emphasize recent CFP Board disciplinary trends and the avoidable mistakes made by certificants and candidates1 that can lead to unnecessarily severe discipline. Data for this blog is taken from a CFP Board News Release dated June 30, 2021, in which forty disciplinary actions were published. The topics…
Read MoreUnderstanding the Investment Loan Interest Deduction
Good to Know Can you deduct the interest you pay on loans used to make investments? Conventional wisdom would have you believe the rules are complex. Yet, we only need to address the following three questions to gain clarity. What kinds of interest paid on investment loans are deductible? How do dividend income and capital…
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