Cfp fundamentals - Study guides, Class notes & Summaries

Income Tax Fundamentals and Calculations 100% solved Andrew Wyman works at a graphic arts business, and his wife has a bookkeeping business. Andrew's employer has a profit- sharing plan for employees and contributes 3% of compensation annually. The Wymans have provided the following information for income tax planning this year: Salary- $109,000 Corp. dividends- $3,000 Bookkeeping income- $12,000 IRA contribution- $11,000 Mortgage interest- $9,000 Capital losses- $5,000 Investment i...

As a rule of thumb, it is best if consumer debt does not exceed: A. 20% of net income. B. 20% of gross income. C. 3 to 6 months of expenses. D. 36% of gross monthly income. - ANSWER A. 20% of net income This is a rule of thumb, along with the others that recommend housing debt be limited to 28% of gross income, and total debt not to exceed 36% of gross income. David has won the Illinois state lottery. He must decide whether to receive annual payments of $250,000 at the beginning of e...

Certified Financial Planner (CFP) (Personal Financial Planning) - Answer-Certified Financial Planner (CFP) www.c(p-net Why has the CERTIFIED FINANCIAL PLANNER certification become so sought after by consumers and the financial planners who serve them? The answer is simple. The public is looking for a planner who has demonstrated a commitment to competency, and financial professionals want an established certification that sets them apart in a globally expanding financial planning profession....

A CFP® professional has been engaged by a client to help with budgeting and investing for retirement. The client has had difficulty saving money for investments even though he has an adequate income. The CFP® professional began to collect information on income and expenses for the client and then decided to look at the client's income tax returns. When the CFP® professional asked for income tax returns, he learned that the client had not paid income taxes for the past 4 years. What should th...

As a rule of thumb, it is best if consumer debt does not exceed: A. 20% of net income. B. 20% of gross income. C. 3 to 6 months of expenses. D. 36% of gross monthly income. - A. 20% of net income This is a rule of thumb, along with the others that recommend housing debt be limited to 28% of gross income, and total debt not to exceed 36% of gross income. David has won the Illinois state lottery. He must decide whether to receive annual payments of $250,000 at the beginning of each year fo...

As a rule of thumb, it is best if consumer debt does not exceed: A. 20% of net income. B. 20% of gross income. C. 3 to 6 months of expenses. D. 36% of gross monthly income. CORRECT ANSWER A. 20% of net income This is a rule of thumb, along with the others that recommend housing debt be limited to 28% of gross income, and total debt not to exceed 36% of gross income. David has won the Illinois state lottery. He must decide whether to receive annual payments of $250,000 at the beginnin...

20232024 COMPLETE EXAM FOR CFP 4 - CHAPTER 2 (INCOME TAX FUNDAMENTALS AND CALCULATIONS: DEDUCTIONS AND CREDITS) Standard Deduction - CORRECT ANSWER-AGI is reduced by greater of Standard Deduction or Itemized Deduction Based on filing status and calendar year of filing Taxpayer 65 and older can take an additional deduction, another deduction available to those who are blind Itemized Deductions - CORRECT ANSWER-AGI is reduced by greater of Standard Deduction o...

7 Steps of the Financial Planning Process - ANSWER-1. Understanding the client's personal and financial circumstances (qualitative/quantitative information) 2. Identifying and selecting goals 3. Analyzing the client's current course of action and potential alternative courses of action 4. Developing the financial planning recommendations 5. Presenting the financial planning recommendations 6. Implementing the financial planning recommendations 7. Monitoring progress and updating What ...

CFP 4 - Chapter 2 (Income Tax Fundamentals and Calculations: Deductions and Credits) Acquisition Indebtedness - correct answersInterest incurred in acquiring, constructing or improving a qualified residence of taxpayer (one other residence included) Debt must be secured by real property in amount to total $1,000,000 ($500,000 for married filing separately) Adoption Expense Credit - correct answersNonrefundable tax credit for qualified adoption expenses in 2016 - taken in year adop...