Personal financial planning

TCP Chapter 4 · Area I · Blueprint I.D

Clients rarely ask only about tax. They ask whether to use a Roth or a traditional account, whether a municipal bond beats a corporate bond, how to pay for college, how much insurance they need and whose name should be on the house. The Blueprint expects a CPA who prepares returns to spot those planning questions and answer them with the tax effects in view. This chapter covers retirement plans and how to choose among them, investment risk and after-tax return, education funding, insurance, and ownership and beneficiary designations. Tessa and Leo work with Nathan and Isabel Ford: Nathan is a 38-year-old engineer and Isabel a freelance designer, with two young children. Figures are for 2026.

In this chapter

Retirement plans compared
Choosing a retirement plan: traditional or Roth
Investment risk
After-tax return on investment
Funding education
Insurance to manage risk
Ownership and beneficiary designations

This chapter has 7 lessons, 50 practice MCQs with explanations and 20 simulations, plus flashcards and a recall sheet.

What this chapter covers

Traditional and Roth IRAs, 401(k)s and annuities
investment risk
education funding and 529 plans
life, long-term care and umbrella insurance
ownership and beneficiary designations
after-tax return

Chapter 3: Gift tax compliance and planning · Chapter 5: C corporations and their shareholders