Student Question

Student Question from Holly SCourse: Income Tax Planning Student Question: Hi Dan. On this page, step 6 of the Stock Redemption steps seems incorrect. My understanding from a prior lesson was that the remaining owner % would be unchanged (stay at 33% in this example) since the corporation bought the deceased owner’s shares. What am…

Student Question from Sophie LCourse: Fundamentals of Financial Planning Student Question: Hi Dan, The adequate amount for an Emergency Fund is 3 months for married clients who both have substantial and reliable income. What is the generally accepted level, if any, for “substantial income”? In Question 3, I considered that $60,000 per spouse was not…

Student Question from Pam FCourse:  Fundamentals of Financial Planning Student Question: Hello, My question deals with a situation where a grandparent buys EE bonds for a grandchild and both the grandparent’s name and the grandchild’s name are listed as owners on the bonds.  In that situation, would the bonds be counted as the child’s asset…

Student: Question from Natalie PCourse:  Fundamentals of Financial Planning Student Question: Hello,  What is the general rule for using a negative number when entering payments? I am calculating the second problem on this web page and am having trouble determining why I need to use a negative when entering payments. Thanks so much! Charles has…

Student Question from Leslie GCourse:  Fundamentals of Insurance Planning Student Question: Hi Dan, I’m confused on how I would know whether or not to apply the 3.8% Medicare surtax in the following CFP Board released question.  How can I know without knowing their AGI? Your client’s federal marginal tax rate is 35% and the state…

Student Question: Hi Dan! I think I’m confused on my terminology. I always thought non-qualified plans were: SERP’s, Executive Deferred Comp., 457 Plans, etc. But in Lesson 1 of the Retirement Planning section, I see that IRA’s, SEP’s, 403(b)’s are considered “non-qualified plans.” Am I mixed up about this? Instructor Response: Hi Margie! I hope…

Student Question from Leslie GCourse:  Fundamentals of Financial Planning Student Question: I thought that all investments were SIPC covered; however, does that change for an IRA invested in a money market fund or CDs?  Thanks! Instructor Response: Hi Leslie! The purpose of the FDIC is solely to provide consumer confidence in our nation’s banking system.…

Student Question from Greg CCourse:  Income Tax Planning Student Question: Is the recapture full or is it prorated? I looked at Section 2032A and couldn’t quickly tell although it does not appear to be prorated. That is a complex Code section and the slide appears to do a nice job of distilling it down to…

Student Question from EtebeCourse:  Estate Planning Student Question: Good evening, #7 on the review question…why would four business associates with equal partnership be tenants in common? I thought it would be JTWROS as their interest is equal and undivided. Thanks. 7.     An investment by four business associates, each wishing to contribute 25% of the purchase price. 100%…

Student Question from Margie LCourse:  Insurance Planning Student Question: Insurance policy dividends may be taxable if they are paid in cash to the policy owner, but what about dividends that remain in the policy to purchase additional coverage (Paid-Up Additions)? Are those dividends non-taxable as long as the coverage is not lapsed or surrendered? Instructor Response:…