Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: Good afternoon.  Can you explain why we didn’t take inflation into consideration for the second calculation in the first problem? Dawn wants to have $25,000 in today’s dollars for a round-the-world cruise when she retires 11 years from now. She assumes she can earn…

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Course: Income Tax PlanningLesson 1: Introduction to Taxation Student Question: For this question, could you send me the math behind finding the answer?  I want a better understanding of how the penalty was assessed. Review Exercise: Jerry’s taxes were due April 15th. He filed his return in October of the same year and paid his…

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Course: Fundamentals of Financial PlanningLesson 5b: Using the HP 10bII Calculator Student Question: In Example 2, the solution given has 6 years (including CF0) instead of 5. I believe the first year of Carl’s coin purchase should be CF0, but the fifth year – which includes a purchase and a sale – should be CF4.…

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Course: Fundamentals of Financial PlanningLesson 6: Educational Savings Techniques Student Question: Good morning, Do the limits on 529 Plan contributions apply to that specific account, the child, or the contributor? Is it possible for a contributor to have more than one 529 Plan if they’ve reached the limit on one? Thanks, Aaron Instructor Response: Hi…

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Course: Fundamentals of Financial PlanningLesson 2: Economic Concepts and Consumer Protection Laws Student Question: Hi, Can you please provide an explanation for the correlation between demand and the equilibrium price? I’m aware that demand is influenced by price increases or decreases; however, I’m having a hard time deciphering the relationship between demand and the equilibrium…

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Course: Fundamentals of Financial PlanningLesson 1: The Personal Financial Planning Process Student Question: Good evening.  In Practice Standard B-3 (shown below), is the “reasonable basis” why advisors have client agreements stating what services are provided? Practice Standard B-3 The Practice Standards set forth in the Financial Planning Process – a CFP® professional must comply with…

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Course: Investment PlanningLesson 9: Fixed Income Securities Student Question: There is a question regarding duration that I continue to struggle with. Which of the following are true: Lower coupon bonds are more sensitive to interest rates than high coupon bonds. There is inverse relationship between bond prices and change in interest rates. There is a positive relationship between…

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Course: Investment PlanningLesson 1: Key Principles of Investing Student Question: Hey Dan, Hope you are doing well. Can you help solve a practice question?  I looked through the textbook and my notes and just couldn’t wrap my brain about how to solve the problem below.  The confusing part to me is that the fund was not…

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Course: Investment PlanningLesson 14: Evaluation Portfolio Performance Student Question: Hello – I’m a little confused about the example (below) discussing an heirloom of only sentimental value. Why would this be titled at all for a will, especially since an earlier lecture said items of no value would pass through the will as the situation does…

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Course: Investment PlanningLesson 14: Evaluation Portfolio Performance Student Question: Hello, In calculating Information Ratio, why do we need the denominator to be Standard Deviation of the difference in portfolio and index returns?  This is unlike the Sharpe Ratio, where the denominator is Standard Deviation of the Portfolio. Doesn’t the Standard Deviation of the Portfolio indicate…

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