Student Question

Course: Income Tax PlanningLesson 10: Recognition of Expenses, Losses, and Deductions Student Question: Hello- Question 5 (below) did not make sense to me. I started out by breaking down by year —  400,000/2,100,000*3,000,000 and so forth, but did not arrive at the correct answer.  So then I tried adding up 3 year —  400+650+700/2100000*3,000,000.  That…

Course: Fundamentals of Financial PlanningLesson 1: The Personal Financial Planning Process Student Question: Hello- I have a question on the example where it says a fee-only CFP Certificant cannot accept sales-related compensation such as commissions on the sale of life insurance products. Let’s say that a CFP Certificant recommended that the client go speak with…

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

Course: Fundamentals of Financial PlanningLesson 7: Educational Aid and Funding Calculation Student Question: Hello- In Step 5: solving for LUMP SUM needed today… Step 5: Determine funding actually needed Lump sum needed TODAY to fund the full cost of college education. How come we are solving for PV and not PMT? Thanks Kelly Instructor Response: Hi…

Course: Fundamentals of Financial PlanningLesson 7: Educational Aid and Funding Calculation Student Question: Hello- So is there ever any benefit to choosing a Coverdell ESA over a 529 Plan? It seems the big difference in the two is that the Coverdell has an AGI limit, so why would you just not always steer clients towards 529 Plans…

Course: Estate PlanningLesson 1: Property Ownership 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 will as the situation does not involve a…

Course: Insurance PlanningLesson 10: Social Security Student Question: Hi- 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…

Course: Investment PlanningLesson 10: Fixed Income Securities Analysis Student Question: Hi- I’m not clear why holders of long-term bonds are subject to interest rate risk. If a 20-year bond is purchased at par with a coupon rate of 6.25% ($62.50/year), it seems to me that the investor would still receive $62.50 a year regardless of interest rate…

Course: Fundamentals of Financial PlanningLesson 5b: Using the HP 10bII Calculator Student Question: Hi- 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…

Course: Insurance PlanningLesson 10: Social Security Student Question: Hi- 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…