Dan Madden, CFP® – Online CFP Program

Private Letter Ruling

A CFP® professional is working with a client who is considering a complex estate planning strategy involving the transfer of assets to a grantor retained annuity trust (GRAT). The client expresses concern about how the IRS might interpret a unique aspect of the proposed transaction. The CFP® professional suggests the client consult with a tax…

S&P 500 as a Leading Economic Indicator

Course: Fundamentals of Financial PlanningLesson 2: Economic Concepts and Consumer Protection Laws Student Question: Hi. Why is the S&P 500 considered a leading economic indicator and NASDAQ is not? Both are part of the stock market. Instructor Response: The S&P 500 is a broader representation of the overall market, with 500 large-cap companies represented. NASDAQ…

Traditional vs Roth IRA

Which of the following statements accurately describes a key difference between a Traditional IRA and a Roth IRA? A. Contributions to both Traditional and Roth IRAs are always tax-deductible, regardless of income level. B. Required minimum distributions (RMDs) must begin at age 73 for both Traditional and Roth IRAs. C. Qualified withdrawals from a Roth…

CFP Board Censures 5 Professionals

CFP® Board Updates Learning from the experiences of other CFP® professionals—especially those who have had their right to use the CFP® marks suspended or revoked—can be an incredibly valuable exercise for anyone in the profession. These real-world cases highlight how missteps in ethics, compliance, or client communication can have serious professional consequences. By studying these…

Market Value of a Bond

Emily is reviewing a client’s fixed-income portfolio and evaluating a 10-year, $1,000 par value corporate bond with a 5% annual coupon rate. The bond pays interest annually. Current market interest rates for similar bonds have risen to 7%. What is the approximate market value of the bond today? A. $1,000 B. $869 C. $928 D. $1,137 CLICK…

CFP Board Launches New Women Initiative

CFP® Board In The News The CFP Board has unveiled Accelerate & WIN, a powerful new initiative designed to fast-track the growth, leadership, and impact of women in the financial planning profession. Despite making up only 24% of CFP® professionals, women bring essential perspectives and strengths to a field that increasingly values diversity, flexibility, and…

Supply and Demand

Course: Fundamentals of Financial PlanningLesson 2: Economic Concepts and Consumer Protection Laws Student Question: I missed the below question because I thought number 2 was false. Wouldn’t price and demand move in a correlated way? The more the demand the higher the price? Which of the following statements concerning supply and/or demand is/are true? Thanks.…

Bond Price and Yield Movement

An investor purchases a 10-year corporate bond with a 5% coupon rate at par value. One year later, market interest rates increase to 6%. Which of the following statements is correct regarding the bond’s price and yield? The bond’s price will decrease, and its yield will increase. The bond’s price will increase, and its yield…

Municipal Bond Tax Equivalent Yield

John, a high-income investor in the 35% federal tax bracket, is considering purchasing a tax-free municipal bond with a yield of 3.5%. He is also evaluating a taxable corporate bond with a yield of 5.0%. Which of the following statements is correct regarding the tax-equivalent yield of the municipal bond? The tax-equivalent yield of the…

CFP Board Releases AI Guidance

CFP® Board Updates The CFP Board has released the Generative AI Ethics Guide: A Checklist for Upholding the Code and Standards to assist CFP® professionals in ethically integrating generative AI into their practices. The guide provides practical steps to address key concerns such as data privacy, accuracy, and bias, ensuring that AI enhances rather than compromises…