Student Question

Student Question from: Vincent C.Course:  Fundamentals  – Education Planning Student Question: For the basic rule of only using cash contributions for 529 Plans, can you roll over appreciated stocks from UTMA/UGMA and ESA?  If so, do you have any taxable event tied to the rollover of stocks (if an unrealized gain exists)? Instructor Response: Hi…

Student Question from: Harry F.Course:  Estate Planning Student Question: Dan, given the information on this page, why do Grantor Trusts exist?  What purpose do they serve? Grantor Trusts A Grantor Trust is a trust in which the grantor, due to retained control over the income and/or corpus of the trust, is treated as the owner of…

Student Question from: Katy U.Course:  Income Tax Student Question: On the adjusted basis portion in the question below – why is the $25,000 not included? Isn’t that a commission? I thought you are supposed to include the commission or other similar costs. Nick purchased an office building in Year 1 for $150,000 and sold it…

Student Question from: SteveCourse:  Estate Planning Student Question: Hello Dan, The topic of “Transfers within three years of death” has been very confusing to me. My attempts to research this further on the Internet makes it even more confusing because of either incomplete or flat out incorrect information being provided. It seems that a lot…

Student Question from: SteveCourse:  Estate Planning – Contingent versus Vested Beneficiary Student Question: Hi Dan, I am a bit confused as to why in the example “Northwestern University” and “my son” are not considered having a future “contingent” interest in the trust since they do not receive the interest until the wife, Jane Gold dies.…

Student Question from: Bill M.Course:  Insurance – Replacement Cost Student Question: I don’t understand Question 2. Why does the client have 97.2% of the coverage he needs? Doesn’t he have $14,000,000 in coverage? I thought he just had 77.7% of the required coverage. Where am I messing up? Peter purchased an apartment building for $15,000,000…

Student Question from: Ben H.Course:  Investments – Bonds and Interest Rate Relationship Student Question: From mid contraction to trough in the business cycle cycle, why do bonds do well? I don’t understand the relationship between bonds value going up if interest rates are going down? Please help. Thanks Instructor Response: Hi Ben! Your question brought…

Student Question from: Harry F.Course:  Estate Planning – Taxation of Trusts and Estates Student Question: In the statement below, regarding complex trusts, it states, “If income from the trust is distributed, it is taxed to the beneficiary; if accumulated, the tax is paid by the trust.”  So, would double taxation occur if a trust accumulates…

Student Question from: Shannon P.Course:  Fundamentals of Financial Planning – Economic Concepts Student Question: I need a better understanding of the relationship between supply and demand, in particular the equilibrium price. Instructor Response: Hi Shannon! The short of it is that the equilibrium price is the point at which the demand for a good meets…

Student Question from: David L.Course:  Fundamentals of Financial Planning – Using the Calculator Student Question: Dan – I’m not understanding Question #4. Why is 1 used as the present value? And then why 1 x 12?  From the Lesson:  4. Jackie invests her bonus at the beginning of this calendar year. If she earns 7%…