Retirement Plan Required Minimum Distributions

Course: Retirement PlanningLesson 5: Leveraging Nonqualified Plans for Small Business and Not-For-Profit Employees and Owners Student Question: Hi I’m trying to distinguish when the required minimum distribution amounts are at 72 years old, versus when they are 70 ½.  IRA’s are now 72, correct?  Is a 401k plan and a 403b 70 1/2?  Thank you…

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Maximum Family Benefit

Course: Insurance PlanningLesson 10: Social Security Student Question: 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 benefits…

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Social Security Widower Benefits

Course: Insurance PlanningLesson 10: Social Security Student Question: When it comes to social security widower’s benefit’s, 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?  Thanks Cooper…

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Social Security Retirement Benefits

Course: Insurance PlanningLesson 10: Social Security Student Question: This question (below) doesn’t quite make sense to me.  Could you clarify why the correct answer is D? Robin Elizabeth qualifies for a retirement benefit of $250 and a spouse’s benefit of $400. At her full retirement age, she will receive which of the following? Both $250 and…

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Annual Return and Compounding

Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: 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 rate…

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Deducting Advisory Fees

Course: Income Tax PlanningLesson 10: Recognition of Expenses, Losses, and Deductions Student Question: Hi I read that advisory fees are no longer deductible.  So in this question (below), is it deductible because this is treated as a business deduction since Roger is Self-Employed? Alisha Sheridan, A CFP licensee and fee-only financial planner, has assisted Roger…

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Deducting Gifts to Customers

Course: Income Tax PlanningLesson 10: Recognition of Expenses, Losses, and Deductions Student Question: Hi Can you clarify for me the deductibility of gifts when we’re talking about employees of a business versus self-employed individuals?  It seems the rules have changed on these.  Thanks for your help. Kyle Instructor Response: Hi Kyle, Thank you for the…

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Required Insurance Penalty and Reimbursement

Course: Insurance Planning Lesson 6: Commercial Property and Liability Insurance Student Question: Hi Dan – On this review page, the correct answer for question 2 (below) indicates that insurance will only over 97% of replacement cost. However, it says in the chapter that as long as the property is insured for more than 80% of…

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Revocable versus Grantor Trusts

Course: Estate PlanningLesson 9: Income Taxation of Trusts and Estates Student Question: Can you refer me to a comparison (or just write a few notes) on how a grantor trust differs from a revocable trust and how a non-grantor trust differs from an irrevocable trust? They seem synonymous respectively to each other. Thank you!  Thanks…

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Solving for Annual Equivalent Rate

Course: Retirement PlanningLesson 3: Employee Protections and Employer Responsibilities in Qualified Plans Student Question: I am confused as to how to get the correct answer for question number 4: Jackie invests her bonus at the beginning of this calendar year. If she earns 7% compounded monthly, what is the annual equivalent rate? Round your answer to…

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