Student Question

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:…

Student Question from Greg CCourse:  Fundamentals of Financial Planning Student Question: Hello! It seems to me that the loan proceeds in Question 3 should be positive cash flow entries in year zero, especially if their repayments are negative CFs in Year 5. Why is this not so?  Thanks – Greg Question 3: Donald buys small houses…

Student Question from Ryan FCourse:  Estate Planning Student Question: Hi Dan,  I have a question about an estate planning concept.  I think I’m just reading it wrong, but I want to make sure I have a clear understanding.  What is the correct answer to this question, and why? A husband and wife wish to reduce the size…

Student Question from Mark PCourse:  Insurance Planning Student Question: In the question below, if the ACV had been over $300,000, would she have received that amount?  I know the correct answer is $281,250, but what if the ACV had been over $300,000? Jill owns a home that has a market value of $500,000, a replacement value…

Student Question from Natalie PCourse:  Insurance Planning Student Question: Hello! I am looking at question #2 that discusses the “contribution by equal shares” rule. However, I do not understand how they are getting the answer. 10% of $120,000 is $12,000 (not $25,000). Can you please explain? Thanks! Question 2 Three companies insure Josh’s $250,000 house. Insurer…

Student Question from Greg CCourse:  Estate Tax Planning Student Question: Dan, The assets in a QTIP trust are automatically included in the surviving spouse’s estate, correct? Thanks, Greg Instructor Response: Hi Greg! Terminal interests are NOT normally included in the beneficiary’s estate. However, the IRS makes a special exception to “Qualify” (hence, QTIP for “Qualified” instead…