Student Question

Course: Investment Planning Lesson 3: Equity Securities Student Question: Hi Bruce, In reviewing the tax implications of derivatives, I had a question about the terms in & out of money. Is premium price factored into whether something is in or out of money? Or is it strictly referring to market and strike price? Thanks, Instructor…

Course: Insurance Planning Lesson 5: Personal Auto and Umbrella Liability Policies Student Question: Hi If I have liability insurance and I’m driving a vehicle that belongs to a charity (not my own vehicle) and I get into an accident, then my insurance covers this? Sarah Instructor Response: Hi Sarah- Liability coverage generally follows the car,…

Course: Income Tax Planning Lesson 1: Introduction to Taxation Student Question: Hi How is the answer to question #5 (below) $810? Jerry’s taxes were due April 15th. He filed his return in October of the same year and paid his $3,000 two months later. Would Jerry be subject to a penalty? How much? No. Jerry…

Course: Retirement Planning Lesson 4: Understanding Types of Qualified Plans Student Question: Hi Bruce- I have studied the material in depth, but am still struggling with the distinction between Money Purchase Plans, Cash Balance Plans, and Target Benefit Plans. I have read all of the notes and think I have it and then get a…

Course: Retirement Planning Lesson 1: Using IRAs to Build and Distribute More Retirement Income Student Question: Hi Bruce- If an IRA owner over-contributes to his IRA, the owner must remove the excess contribution AND the earning on those contributions by the tax filing  date to avoid a 6% tax penalty. However, the 6% penalty tax…

Course: Income Tax Planning Lesson 1: Introduction to Taxation Student Question: Hi Dan- I have a question on Review Exercise #1 (below) Review ExerciseShane’s tax return was due on April 15. He filed on April 15 but did not pay his $125 tax bill until May 11. How much, if any, will Shane be penalized?…

Course: Investment Planning Lesson 9: Equity Securities Student Question: Greetings Dan, I am in the Investment Planning course, on Topic 36.  In the sample questions that ask to determine bond yields, how do I determine the value for the end of period payment? For example, refer to Page 36.11, the practice question gives $37.50 as…

Course: Investment Planning Lesson 14: Evaluating Portfolio Performance Student Question: I’ve seen this question come up a couple times, but can’t seem to grasp the answer. “If the Market Risk Premium were to increase, all other things being equal, the value of common stock would…” The answer is “decrease”, but that makes no sense to…

Course: Investment Planning Lesson 14: Evaluating Portfolio Performance Student Question: Hello! Re: Reverse Splits: When companies decide to do a reverse stock split, does the company always take in the outstanding shares as “treasury stock”? If not, what happens to the outstanding stock that has been taken away? Where does it go on the balance…

Course: Fundamentals of Financial Planning Lesson 5: Using the HP12-C Calculator Student Question: Hi, how do i know when to use CHS in the calculator, I’m a little unclear about  that. Instructor Response: Hi Julio- Good to hear from you.  Hope all is going well thus far. Yeah, this can certainly be confusing.  There are some…