Dan Madden, CFP® – Page 10 – Online CFP Program

Kiddie Tax

Jennifer and Mark have a 14-year-old son, Ryan, who earned $500 in wages from a part-time job and received $3,000 in interest income from an investment account set up by his grandparents. How will Ryan’s income be taxed under the “kiddie tax” rules for 2025? The entire $3,500 will be taxed at Ryan’s tax rate.…

CFP Board Records Milestone Year in 2024

CFP® Board Updates The CFP Board achieved record-breaking milestones in 2024, with the number of CFP® professionals reaching 103,093, a 4.3% increase from 2023. Additionally, 10,437 candidates sat for the CFP® exam, the highest in the Board’s history. These accomplishments align with the success of CFP Board’s public awareness campaign, which has significantly enhanced recognition…

Identifying Steps in the Financial Planning Process

Lisa, a CFP® professional, is working with her client, Tom. After gathering all necessary information about Tom’s financial situation, including his income, expenses, assets, liabilities, and risk tolerance, Lisa analyzes the data. She identifies that Tom’s current investment allocation is not aligned with his long-term retirement goals and recommends reallocating his portfolio to better match…

Estate Planning Priority

Sarah, a CFP® professional, is working with her client, Mark, who wants to ensure that his assets are distributed efficiently to his heirs and that his minor children are cared for in the event of his death. During their discussion, Sarah learns that Mark has a will but no other estate planning documents. Mark also…

Ethics and Professional Responsibility

Janet, a CFP® professional, is meeting with a prospective client, Thomas. During their conversation, Thomas mentions that he is looking for a financial advisor who can help him invest in sustainable and socially responsible funds. Janet does not have significant experience or expertise in sustainable investing but is eager to take on Thomas as a…

Identify the Step of the Financial Planning Process

Emily, a CFP® professional, has her first meeting with a new client, David. During the meeting, Emily asks David about his financial goals, current assets, liabilities, and personal circumstances. She also explains the financial planning process, the services she provides, and the fees associated with her work. Which step of the 7-Step Financial Planning Process…

Determining Correct Years of Growth

Course 1: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: Hello, in the question below, I am a little lost on why it is 9 years for N instead of 10? Could you explain? In Year 1, Harvey assumed he would need the equivalent of $500,000 in Year 1 dollars to retire in…

Adequate Family Protection

Mark and Jane, both 40 years old, have two young children and are concerned about protecting their family’s financial security in case of unexpected events. Mark earns $100,000 annually, while Jane stays home to care for their children. They currently have $50,000 in savings and a mortgage balance of $300,000. Mark has group term life…

CFP Board Seeks Public Input on Proposed Updates to Competency Standards

CFP® Board Updates The CFP Board of Directors is inviting public comment on proposed revisions to the Competency Standards for CFP® certification, covering education, experience, examination, and continuing education requirements. These updates aim to keep the standards modern, relevant, and aligned with the evolving financial planning profession. To develop these recommendations, the CFP Board formed…

Beta as a measure of volatility

Course 3: Investment PlanningLesson 1: Key Principles of Investing Student Question: I am having a difficult time conceptualizing Beta as a measure of only systematic risk AND as a measure of volatility relative to the broader market. By way of illustration, assume an individual equity has wild swings in value over a one-year period (volatility)…