Student Question

Course: Insurance PlanningLesson 10: Social Security Student Question: Hi, On this review page, the correct answer for question 2 (below) indicates that insurance will only cover 97% of replacement cost. However, it says in the chapter that as long as the property is insured for more than 80% of replacement cost, the policy will pay…

Course: Insurance PlanningLesson 10: Social Security Student Question: Hi, Does the maximum family benefit apply to a husband and wife that are both fully insured if the combined total between the two exceeds the maximum family limit? If I understand correctly, the maximum family limit only applies if there are beneficiaries within the family receiving…

Course: Insurance PlanningLesson 10: Social Security Student Question: Hi, When it comes to Social Security widower’s benefits, is the widow eligible to take his/her SS benefit early (age 62) and then switch over to the deceased spouse’s full benefit at 67? Or would the widow only be eligible for one of the two benefits? Thank…

Course: Retirement PlanningLesson 1: Using IRAs to Build and Distribute More Retirement Income Student Question: Hi, This page states that rental income is not included in the definition of earned income.  If the client is a professional real estate developer whose income is derived mainly from rental income, would they be able to contribute to…

Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: Hi, My question relates to being able to clearly distinguish when the CFP Board exam will require an annual, or other period for the answer. Question 5(b) asks: “What is the rate of return on Investment 2 using daily compounding?” What is the annual…

Course: Insurance PlanningLesson 17: Business Uses of Life Insurance Student Question: Hi, Do buy sell agreements accounts for projected growth of the company? Do the life insurance benefits increase over time to account for projected growth, or perhaps can they invest and grow conservatively to keep up with inflation (or COLA on the plan)? Thank…

Course: Income Tax PlanningLesson 8: Arriving at Taxable Income Student Question: Hi, If a client has a $250k mortgage on a home worth $500k and they refinance to take equity out of their home, say $100k. Then they use that $100k to purchase a vacation home worth $300k (so they now have $450k in mortgage…

Course: Investment PlanningLesson 9: Fixed Income Securities Student Question: Hi, Just a question about Corporate Bond Funds.  Gathering my information from the book, it seems they are “debt notes” insured to keep the company going.  If they are not repaid the person who accepted the “bonds” can sometimes take assets in the company, like equipment…

Course: Retirement PlanningLesson 5: Leveraging Nonqualifed Plans for Small Businesses and Not-For-Profit Employees and Owners Student Question: I’ve seen the phrase “plan formula can be integrated with social security” many times, but I don’t really know what this means. Can you explain how that works or is it beyond the scope of what we need…

Course: Retirement PlanningLesson 7: Income Distribution Planning for Qualified Plans Student Question: In the discussion as to whether a lump-sum distribution would be appropriate instead of periodic or annuity payments, one of the issues in making that decision is “The Size of the Distribution.” I’m not really understanding what is meant by this statement, “The…