Dan Madden, CFP® – Online CFP Program

RMD Strategy

Evelyn, age 76, must take a required minimum distribution (RMD) of $40,000 from her traditional IRA in 2026. She does not need the income and plans to donate $25,000 to a qualified charity. Which of the following strategies would MOST effectively reduce Evelyn’s adjusted gross income (AGI)? Take the full RMD and then claim a…

Corporate Bonds in the Marketplace

Course: Investment PlanningLesson 9: Fixed Income Securities Student Question: Hi, Just a question about Corporate Bond Funds. Gathering my information from the book, it seems they are “debt notes” insured to keep the company going. If they are not repaid the person who accepted the “bonds” can sometimes take assets in the company, like equipment…

Net Investment Income

In 2026, a married couple filing jointly has modified adjusted gross income (MAGI) of $320,000, including $40,000 of net investment income. Assuming no other limitations apply, how much of their net investment income is subject to the 3.8% Net Investment Income Tax (NIIT)? The NIIT threshold in 2026 is $250,000. $0 $20,000 $40,000 $70,000 CLICK…

Integration with Social Security Definition

Course: Retirement PlanningLesson 5: Leveraging Nonqualifed Plans for Small Businesses and Not-For-Profit Employees and Owners Student Question: I’ve seen the phrase “plan formula can be integrated with social security” many times, but I don’t really know what this means. Can you explain how that works or is it beyond the scope of what we need…

Revocable Trusts

Which of the following statements regarding a revocable living trust is CORRECT? Assets transferred to the trust are removed from the grantor’s taxable estate The trust provides income tax-free growth during the grantor’s lifetime The grantor retains control over trust assets and may amend the trust The trust avoids gift tax reporting because it is…

Lump-Sum vs Annuity Distributions Considerations

Course: Retirement PlanningLesson 7: Income Distribution Planning for Qualified Plans Student Question: In the discussion as to whether a lump-sum distribution would be appropriate instead of periodic or annuity payments, one of the issues in making that decision is “The Size of the Distribution.” I’m not really understanding what is meant by this statement, “The…

Donating Publicly Traded Stock

In 2026, a client donates publicly traded stock held for more than one year to a qualified charity. The stock has a fair market value of $50,000 and a cost basis of $12,000. Which of the following statements is CORRECT? The client may deduct only the $12,000 cost basis The client recognizes a $38,000 capital…

Charitable Deduction – Tangible Personal Property

Course: Estate PlanningLesson 11: Charitable Gifting Techniques Student Question: Why would a stamp collection donated to the Salvation Army NOT be deductible at FMV? Thanks for your time! Instructor Response: Hi, Great question here. A stamp collection is tangible personal property, the deduction depends on whether the charity’s use of the property is related to its…

Retirement Withdrawal Strategies

James (age 66) retires in 2026 and is evaluating how to fund his living expenses. He needs $80,000 after tax this year. His available assets include: Traditional IRA: $1,000,000 (all pre-tax) Roth IRA: $200,000 Taxable brokerage account: $300,000 (basis $200,000) Assume: Ordinary income tax rate: 24% Long-term capital gains tax rate: 15% No Social Security…

Maximum Family Benefit

Course: Insurance Planning Lesson 17: Business Uses of Life Insurance Student Question: Does the maximum family benefit apply to a husband and wife that are both fully insured if the combined total between the two exceeds the maximum family limit? If I understand correctly, the maximum family limit only applies if there are beneficiaries…