Title Details

Certified Financial Planner Board of Standards, Inc., is a nonprofit organization acting in the public interest by fostering professional standards in personal financial planning. The CFP Board sets and enforces the standards for CFP® certification, the recognized standard of excellence for personal financial planning. Individuals who successfully complete the CFP Board's initial and ongoing certification requirements—including requirements related to education, examination, experience, and ethics—are awarded the right to use the CFP® certification marks. CFP® certification identifies financial planners who are true professionals in one of the fastest growing and exciting careers today, allowing the public to find professionals qualified to provide competent and ethical financial planning services delivered with a fiduciary standard of care, putting the client's best interests first. They are located in Washington, D.C.

Acknowledgments xiii

About the Book xv

Preface xvii
Charles R. Chaffin, EdD, CFP Board

About the Practice Questions xxiii

About the Contributors xxv

PART ONE

1 Theory and Practice 3
Charles R. Chaffin, EdD, CFP Board

2 Financial Planning Process 13
John E. Grable, PhD, CFP®, University of Georgia
Ronald A. Sages, PhD, MBA, CFP®, Kansas State University

3 Financial Statements 25
Thomas Warschauer, PhD, CFP®, San Diego State University

4 Cash Flow Management 35
Martie Gillen, PhD, University of Florida
Michael Gutter, PhD, University of Florida

5 Financing Strategies 43
Kenneth Wynn, University of Florida
Martie Gillen, PhD, University of Florida
Michael Gutter, PhD, University of Florida
Jorge Ruiz-Menjivar, University of Florida

6 Function, Purpose, and Regulation of Financial Institutions 49
John E. Grable, PhD, CFP®, University of Georgia
Sonya L. Britt, PhD, CFP®, Kansas State University

7 Education Planning 59
Michael Gutter, PhD, University of Florida
Martie Gillen, PhD, University of Florida

8 Financial Planning for Special Circumstances 65
Sharon A. Burns, PhD, CPA (Inactive)

9 Economic Concepts 71
Dave Yeske, DBA, CFP®, Golden Gate University

10 Time Value of Money 79
Jorge Ruiz-Menjivar, University of Florida
Martie Gillen, PhD, University of Florida
Michael Gutter, PhD, University of Florida
Kenneth Wynn, University of Florida

11 Financial Services Regulations and Requirements 87
John E. Grable, PhD, CFP®, University of Georgia
Sonya L. Britt, PhD, CFP®, Kansas State University

12 Business Law 97
Thomas Warschauer, PhD, CFP®, San Diego State University
Don L. Harrington, LLB

13 Consumer Protection Laws 107
John E. Grable, PhD, CFP®, University of Georgia
Sonya L. Britt, PhD, CFP®, Kansas State University

14 Principles of Risk and Insurance 117
Dave Yeske, DBA, CFP®, Golden Gate University

15 Analysis and Evaluation of Risk Exposures 127
Dave Yeske, DBA, CFP®, Golden Gate University

16 Health Insurance and Health Care Cost Management 135
Sharon A. Burns, PhD, CPA (Inactive)

17 Disability Income Insurance (Individual) 141
Dave Yeske, DBA, CFP®, Golden Gate University

18 Long-Term Care Insurance 149
Sharon A. Burns, PhD, CPA (Inactive)

19 Life Insurance (Individual) 155
Dave Yeske, DBA, CFP®, Golden Gate University

20 Income Taxation of Life Insurance 163
Martin C. Seay, PhD, Kansas State University
Lance Palmer, PhD, CPA, CFP®, University of Georgia

21 Business Uses of Life Insurance 169
John Gilliam, PhD, CFP®, Texas Tech University

22 Insurance Needs Analysis 185
Thomas Warschauer, PhD, CFP®, San Diego State University

23 Insurance Policy and Company Selection 193
Thomas Warschauer, PhD, CFP®, San Diego State University
Andrew Head, MA, CFP®, Western Kentucky University

24 Annuities 203
John Gilliam, PhD, CFP®, Texas Tech University
Andrew Head, MA, CFP®, Western Kentucky University

25 Characteristics, Uses, and Taxation of Investment Vehicles 215
Swarn Chatterjee, PhD, University of Georgia
Lance Palmer, PhD, CPA, CFP®, University of Georgia

26 Types of Investment Risk 223
Thomas Warschauer, PhD, CFP®, San Diego State University

27 Quantitative Investment Concepts 229
Thomas Warschauer, PhD, CFP®, San Diego State University

28 Measures of Investment Returns 237
Thomas Warschauer, PhD, CFP®, San Diego State University

29 Bond and Stock Valuation Concepts 245
Dave Yeske, DBA, CFP®, Golden Gate University

30 Portfolio Development and Analysis 253
Thomas Warschauer, PhD, CFP®, San Diego State University

31 Investment Strategies 263
Dave Yeske, DBA, CFP®, Golden Gate University

32 Asset Allocation and Portfolio Diversifi cation 271
Dave Yeske, DBA, CFP®, Golden Gate University

33 Income Tax Law Fundamentals 279
Lance Palmer, PhD, CPA, CFP®, University of Georgia

34 Tax Compliance 289
Sharon A. Burns, PhD, CPA (Inactive)

35 Income Tax Fundamentals and Calculations 295
Lance Palmer, PhD, CPA, CFP®, University of Georgia

36 Characteristics and Income Taxation of Business Entities 303
Webster Hewitt, CPA, CFP®, University of Georgia
Lance Palmer, PhD, CPA, CFP®, University of Georgia

37 Income Taxation of Trusts and Estates 313
Martin C. Seay, PhD, Kansas State University
Lance Palmer, PhD, CPA, CFP®, University of Georgia

38 Basis 321
Sharon A. Burns, PhD, CPA (Inactive)

39 Tax Consequences of the Disposition of Property 327
Lance Palmer, PhD, CPA, CFP®, University of Georgia
Martin C. Seay, PhD, Kansas State University

40 Alternative Minimum Tax (AMT) 333
Webster Hewitt, CPA, CFP®, University of Georgia
Lance Palmer, PhD, CPA, CFP®, University of Georgia

41 Tax Reduction and Management Techniques 341
Lance Palmer, PhD, CPA, CFP®, University of Georgia

42 Passive Activity and At-Risk Rules 351
Lance Palmer, PhD, CPA, CFP®, University of Georgia

43 Tax Implications of Special Circumstances 357
Lance Palmer, PhD, CPA, CFP®, University of Georgia

44 Charitable Contributions and Deductions 365
Webster Hewitt, CPA, CFP®, University of Georgia
Lance Palmer, PhD, CPA, CFP®, University of Georgia

45 Retirement Needs Analysis 373
Sharon A. Burns, PhD, CPA (Inactive)

46 Social Security (Old-Age, Survivors, and Disability Insurance) 379
Thomas Warschauer, PhD, CFP®, San Diego State University

47 Types of Retirement Plans 387
John E. Grable, PhD, CFP®, University of Georgia

48 Qualified Plan Rules and Options 395
Sharon A. Burns, PhD, CPA (Inactive)

49 Other Tax-Advantaged Plans 401
Sharon A. Burns, PhD, CPA (Inactive)

50 Regulatory Considerations 407
Sharon A. Burns, PhD, CPA (Inactive)

51 Key Factors Affecting Plan Selection for Business 411
Sharon A. Burns, PhD, CPA (Inactive)

52 Investment Considerations for Retirement Plans 417
Dave Yeske, DBA, CFP®, Golden Gate University

53 Distribution Rules, Alternatives, and Taxation 427
Sharon A. Burns, PhD, CPA (Inactive)

54 Characteristics and Consequences of Property Titling 435
Sharon A. Burns, PhD, CPA (Inactive)

55 Methods of Property Transfer at Death 439
Sharon A. Burns, PhD, CPA (Inactive)

56 Estate Planning Documents 445
Sharon A. Burns, PhD, CPA (Inactive)

57 Gifting Strategies 451
Elissa Buie, MBA, CFP®, Golden Gate University

58 Gift Tax Compliance and Tax Calculation 459
Elissa Buie, MBA, CFP®, Golden Gate University

59 Incapacity Planning 467
Elissa Buie, MBA, CFP®, Golden Gate University

60 Estate Tax Compliance and Tax Calculation 475
Elissa Buie, MBA, CFP®, Golden Gate University

61 Sources for Estate Liquidity 483
Elissa Buie, MBA, CFP®, Golden Gate University

62 Powers of Appointment 489
Sharon A. Burns, PhD, CPA (Inactive)

63 Types, Features, and Taxation of Trusts 495
Elissa Buie, MBA, CFP®, Golden Gate University

64 Qualifi ed Interest Trusts 503
Elissa Buie, MBA, CFP®, Golden Gate University
65 Charitable Transfers 511
Elissa Buie, MBA, CFP®, Golden Gate University

66 Use of Life Insurance in Estate Planning 517
Elissa Buie, MBA, CFP®, Golden Gate University

67 Marital Deduction 525
Elissa Buie, MBA, CFP®, Golden Gate University

68 Deferral and Minimization of Estate Tax 531
Elissa Buie, MBA, CFP®, Golden Gate University

69 Intrafamily and Other Business Transfer Techniques 537
Elissa Buie, MBA, CFP®, Golden Gate University

70 Generation-Skipping Transfer Tax 547
Elissa Buie, MBA, CFP®, Golden Gate University

71 Fiduciaries 553
Martie Gillen, PhD, University of Florida

72 Income in Respect of a Decedent 559
Elissa Buie, MBA, CFP®, Golden Gate University

73 Postmortem Estate Planning Techniques 565
Elissa Buie, MBA, CFP®, Golden Gate University

74 Estate Planning for Nontraditional Relationships 571
Elissa Buie, MBA, CFP®, Golden Gate University

75 Client and Planner Attitudes, Values, Biases, and Behavioral Characteristics and the Impact on Financial Planning 579
Dave Yeske, DBA, CFP®, Golden Gate University

76 Principles of Communication and Counseling 587
John E. Grable, PhD, CFP®, University of Georgia
Kristy L. Archuleta, PhD, LMFT, Kansas State University

77 Standards of Professional Conduct 599
Jorge Ruiz-Menjivar, University of Florida
Martie Gillen, PhD, University of Florida

PART TWO

78 Establishing and Defi ning the Client-Planner Relationship 611
Elissa Buie, MBA, CFP®, Golden Gate University
Dave Yeske, DBA, CFP®, Golden Gate University

79 Gathering Information Necessary to Fulfi ll the Engagement 619
Elissa Buie, MBA, CFP®, Golden Gate University
Sharon A. Burns, PhD, CPA (Inactive)

80 Analyzing and Evaluating the Client’s Current Financial Status 625
Thomas Warschauer, PhD, CFP®, San Diego State University
Vickie Hampton, PhD, CFP®, Texas Tech University
Andrew Head, MA, CFP®, Western Kentucky University

81 Developing the Financial Planning Recommendations 637
John E. Grable, PhD, CFP®, University of Georgia
Lance Palmer, PhD, CPA, CFP®, University of Georgia

82 Communicating the Financial Planning Recommendations 653
Dave Yeske, DBA, CFP®, Golden Gate University
John E. Grable, PhD, CFP®, University of Georgia

83 Implementing the Financial Planning Recommendations 665
Deena Katz, PhD, CFP®, Texas Tech University
Vickie Hampton, PhD, CFP®, Texas Tech University

84 Monitoring the Financial Planning Recommendations 677
Thomas Warschauer, PhD, CFP®, San Diego State University
Sharon A. Burns, PhD, CPA (Inactive)

CONCLUSION

85 Moving Forward 685
Elissa Buie, MBA, CFP®, Golden Gate University
Sharon A. Burns, PhD, CPA (Inactive)
Vickie Hampton, PhD, CFP®, Texas Tech University
Lance Palmer, PhD, CPA, CFP®, University of Georgia
Thomas Warschauer, PhD, CFP®, San Diego State University
Dave Yeske, DBA, CFP®, Golden Gate University
Charles R. Chaffin, EdD, CFP Board

Index 701