Student Question

Course: Retirement PlanningLesson 5: Leveraging Nonqualified Plans for Small Business and Not-For-Profit Employees and Owners Student Question: Hello , I am having trouble understanding how Shared Coverage is implemented. Could you help me understand with an example?   Also, could you explain the Waiver of Premium benefits in simple words. Shared Coverage: “For couples where…

Course: Investment PlanningLesson 14: Evaluation Portfolio Performance Student Question: 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 will as the situation does not involve a…

Course: Investment PlanningLesson 1: Key Principles of Investing Student Question: 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 sold, so there is no sales price,…

Course: Income Tax PlanningLesson 10: Social Security Student Question: Do I understand correctly that all FICA paid in case of employment is deductible/ paid pre-tax (by company as well as employee), whereas in case of self-employment only half is deductible? Instructor Response: Not quite.  Employees do not get a deduction for their FICA share.  Employers…

Course: Estate PlanningLesson 5: Transfer Taxation II Lifetime Transfers Student Question: If the gift tax is paid what is the need to add the gift back to the estate at death? is that not double taxation? Instructor Response: It certainly feels that way, doesn’t it?  But it’s really not. If I give away say $1million…

Course: Insurance PlanningLesson 16: The Irrevocable Life Insurance Trust Student Question: Must Crummey powers always be in effect to apply the annual gift tax exclusion in order to transfer to an irrevocable trust? Or is it the case that as long as it was done once, will all transfers be eligible for the annual gift tax exclusion?…

Course: Estate PlanningLesson 7: Transfer Taxation IV – Generation Skipping Transfers Student Question: Regarding example below, would the death of the father, Stephen, not move Andrew one step up making him only one generation below Mrs. Jones? Would this not remove the generation skipping transfer tax? EXAMPLE: Upon her death, Mrs. Jones left her estate…

Course: Fundamentals of Financial PlanningLesson 3: Personal Financial Statements Student Question: Hi. The lesson states that when looking at the cash flow statement, investment receipts include: interest, dividends, mf capital gains, etc.  Are those funds included in the category of investment receipts even if they don’t withdraw the money from their investment accounts? Instructor Response:…

Course: Estate PlanningLesson 6: Totaling the Gross Estate Student Question: Can you please help me understand this question from a review exercise: Gifts are “tax inclusive” and estates are “tax exclusive” Incorrect. Just the opposite is the case. Gifts are tax exclusive and estates are tax inclusive. I have the logic that Gifts are Tax Inclusive…

Insurance PlanningLesson 17: Business Uses of Life and Disability Insurance Student Question: I have a quick question regarding buy/sell agreement. I’m not clear on who would pay the premiums on disability and or life insurance on the principals and the key employees? Instructor Response: Great question.  A buy-sell agreement relates to owners of the business…