Student Question

Student Question: Course: Investment Planning Lesson 9: Fixed Income Securities I don’t clearly understand how money is made in the mortgage-backed bond process.  What are mortgage pools? Does the investor make money from the interest of the pooled mortgages? What if the mortgages default? Thanks, Kevin Instructor Response: Great question.  Here’s a quick example: John Doe…

Course: Income Tax Planning Lesson 8: Arriving at Taxable Income Student Question: Hi – I know that the Miscellaneous Deduction has been suspended; therefore, reimbursed employee mileage is no longer deductible. Can individuals still deduct mileage related to medical and charitable travel? If so, how is this deduction taken? Thanks! Justin P Instructor Response: Hi Justin, Good question…

Student Question from AlisonCourse: Investment Planning Student Question: Can you help explain this question better? If the market risk premium were to increase, doesn’t that mean the amount of compensation and investor desires would increase, so the value of stock would need to increase further? Board Released Question If the market risk premium were to increase, the value…

Student Question from KrishnaCourse: Insurance Planning Student Question: I think I’m missing something w/this concept. I don’t understand how life insurance proceeds would be taxable to the owner’s estate when the beneficiary is someone else? Example: If I am the policy owner and I purchase life insurance on myself and name my sister as the…

Student Question from David MCourse: Estate Planning Student Question: Hi Dan! Why is Hillary a non skip person in question 1 when she is the granddaughter of Sam and Sarah Parker? Instructor Response: Hi David! Good example of where to be careful on CFP Board exams.  While the diagram shows Sam and Sarah at the…

Student: Question from Matt F.Course: Fundamentals of Financial Planning Student Question: I have several clients that inquired about this recently – they have several Series EE bonds that are maturing or have matured. Do these bonds continue to pay interest after maturity? Is the interest the same amount if so? Thanks. Matt Instructor Response: Hey…

Student Question from Andrew S.Course: Fundamentals of Financial Planning Student Question: Under “penalties and restrictions for nonqual WDs from 529 plans”, what exactly is “this additional tax” mentioned in the third paragraph? Is it talking about the penalty or the penalty and income tax? Thanks. Andrew Instructor Response: Hi Andrew! This is a key topic…

Student Question from Grace R.Course: Investment Planning Student Question: Hi Dan! In the fundamental equity analysis discussion regarding sectors, it states that the Utilities sector is considered interest rate sensitive. Would you mind explaining how utilities are interest rate sensitive? Instructor Response: Hi Grace! Great to hear from you!  And a very good question here.…

Student Question from Safiya J.Course: Insurance Planning Student Question: Hi Dan, I hope you are doing well! I have a question about Question #8 (SHOWN BELOW) – what does the $300,000 mean in the coverage amount? I thought that was the maximum bodily injury coverage, but I must not be understanding that because I’m not…

Student Question from Andy MCourse: Estate Tax Planning Student Question: A correct response to a question in the textbook reads, “If an individual does not use the Unified Credit, it cannot be TRANSFERRED to others for their use.” Although the 2014 Unified Credit of $2,081,800 is not the same as the $5,340,000 Applicable Exclusion Amount,…