Posts by Dan Madden, CFP®

In 2025, Jordan, a single taxpayer, has $80,000 in wages, $3,000 of qualified dividends, and $2,000 of tax-exempt municipal bond interest. What is Jordan’s gross income? $80,000 $83,000 $85,000 $82,000 CLICK TO REVEAL ANSWER Expand B is the answer. Gross income includes wages and taxable dividends but excludes tax-exempt municipal bond interest. $80,000 + $3,000 =…

Olivia is a 25-year old single mother with twin girls who just turned three. Olivia has worked for the last 5 years as an administrative assistant for a local law firm. Olivia’s firm provides her with a basic medical insurance policy and a split definition disability. Which of the following is the biggest risk exposure…

Dan and Karen Burles have 2 children, Coy (age 12, student) and Roger (age 21, student). Dan and Karen own a security equipment sales and installation business, an LLC. Dan and Karen are in the highest income tax bracket. They have a portfolio with $130,000 of municipal bonds (annual income $5,200), $80,000 of corporate bonds…

Maria owns a small consulting firm with 12 employees. She wants to establish a retirement plan that is easy to administer, has low costs, and requires minimal annual reporting. She also wants employees to be able to contribute to the plan through salary deferrals. Which of the following options would best meet Maria’s objectives? 401(k)…

Which of the following statements best describes the characteristics of the expansion phase of the business cycle? Interest rates are rising, unemployment is low, and consumer spending is increasing. Stock market values are at their lowest, businesses reduce inventories, and inflationary pressures ease. Economic growth slows, corporate profits decline, and the Federal Reserve may lower interest…

During an initial client meeting, a CFP® professional gathers details about the client’s current financial situation, including income, assets, liabilities, and expenses. The client also shares that she hopes to retire early, purchase a vacation home, and fund her grandchildren’s college education. Which of the following actions best represents Step 2 of the financial planning…

Gary Chapelle owns a duplex with his brother in joint tenancy with right of survivorship. Gary would like to pass his interest in the property to his son, Bill, and Gary has provided in his will that his interest in the duplex will pass to Bill. Which of the following statements concerning the transfer of…