Dan Madden, CFP® – Page 15 – Online CFP Program

Like-Kind Exchange

William found someone to buy his rental property in Maine. Which of the following properties that William would like to purchase as rental property would allow him to complete a like-kind exchange? A golf course rental property in Arizona that William identified 30 days after selling his Maine property. A beach rental house at the…

CFP Professionals Highly Satisfied With their Career

CFP® Board Updates A 2023 Survey of CFP® Professionals shows overwhelming satisfaction with their career choice. Furthermore, they fully believe the certification has a positive impact on their career. 87% of CFP® Professionals are satisfied with their career 89% are satisfied with their decision to pursue CFP® Certification An overwhelming 86% would recommend others pursue…

Tax Saving Strategies

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…

Internal Rate of Return Calculation

Course: Fundamentals of Financial PlanningLesson 5b: Using the HP 10bII Calculator Student Question: In Example 2, the solution given has 6 years (including CF0) instead of 5. I believe the first year of Carl’s coin purchase should be CF0, but the fifth year – which includes a purchase and a sale – should be CF4.…

Refinance Payment Calculation

Jim refinanced his home mortgage to a 30-year fixed mortgage with biweekly payments. How much is each payment if he owed $450,000 at the time of the refinance and the interest rate is 6%? $923 $1,244 $1,412 $2,592 CLICK TO REVEAL ANSWER Expand B is the answer. Brandon pays his mortgage every two weeks which…

Basis on Sale of Gifted Stock

Which of the following individuals would typically qualify for accelerated death benefits under their term life insurance policy? Ida who is expected to die within 7 months from cancer. Jacob who is expected to die within 10 months from AIDS. Kay who is expected to die within 3 months from kidney failure. All of the…

CFP Board Announces 2023 Academic Research Colloquium Winners

CFP® Board Updates The CFP Board Center for Financial Planning held the 7th annual Academic Research Colloquium for financial planning and related disciplines. It was held December 7-8, 2023 at the Renaissance Arlington Capital View Hotel in Arlington, VA. The colloquium is an international meeting of researchers, practitioners, graduate students and leaders of the financial…

Vested versus Contingent Beneficiary

Course: Estate PlanningLesson 3: Understanding Trusts and Trust Documents Student Question: In the example, I would think Northwestern would have a future, contingent interest, as their interest is dependent upon the death of the wife. But the feedback tells me it’s a vested interest. Do we assume death is inevitable, and therefore not a contingent-worthy…

Reversion Tax

Lucky Star Corp has been extremely lucky with their defined benefit plan as it is currently overfunded. Management decided to terminate the plan while they are overfunded and share the excess with the employees. What amount of reversion tax will Lucky Star Corp have to pay upon termination? 0% 10% 20% 50% CLICK TO REVEAL…

Reducing the AMT

Which of the following tax planning ideas would help Beth the most if she currently has to pay AMT taxes? Pay her $1,000 January mortgage payment before the end of the year. Pay her $2,000 January alimony payment to her ex-husband before the end of the year. Recognize a $3,000 short term capital gain on…