Posts by Dan Madden, CFP®
Medicare Part A Expenses
Which of the following individuals currently covered by Medicare Part A will not have any of their expenses covered by Medicare Part A? Evan who spent one week in hospice care before losing his battle with cancer. Felicia who was treated by her doctor for Strep throat. Greg who was needed a walker following hip…
Read MoreCFP Board Announces Revision of Procedural Rules
CFP® Board Updates On May 16, 2023, the CFP Board announced the adoption of revised Procedural Rules. These rules govern the manner in which the process for investigating alleged misconduct takes place, as well as the process for enforcing the Board’s Code of Ethics and Standards of Conduct. The revised rules will take effect on…
Read MoreDefined-Benefit Pension Plans – Actuarial Assumptions
Which of the following statements concerning the various actuarial assumptions used in estimating an employer’s contributions to a defined-benefit pension plan is correct? The higher the assumed rate of investment income, the larger the employer’s assumed contribution rate. The higher the employee turnover or termination rate, the larger should be the employer’s assumed contribution rate.…
Read MoreDefined Benefit Plan 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…
Read MoreWho is an Investment Advisor?
Which of the following individuals need to register with the SEC under the Investment Advisers Act of 1940? Adam who retired last year from a big brokerage house but he recently started providing services to 12 clients who live in his neighborhood that he met while out golfing. Belinda who writes weekly investment articles for…
Read MoreCFP Board Launches Endowed Scholarship for Women
CFP® Board Updates The CFP Board announced on May 1 the creation of an endowed scholarship program to fund the education of women who are aspiring to make an impact and become CFP® Professionals. The scholarship is operated through the CFP Board Center for Financial Planning. This scholarship will award up to $5,000 a qualified…
Read MoreBlack-Scholes Option Valuation Model
All of the following are correct about the impact of an increase in the single variable under the Black-Scholes Option Valuation Model EXCEPT: Market price has a positive impact on put options. Strike price has a positive impact on put options. Expiration time has a positive impact on call options Stock volatility has a positive…
Read MoreReducing 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…
Read MoreCFP Board Exam Pass Rate was 65% in March 2023
CFP® Board Updates The most recent CFP Board exam, administered in March 2023, produced a pass rate of 65%. That was in increase of 1% from November 2022, and in-line with previous exam pass rates that all hovered in the mid-60% range. There was also a record number of exam test takers in March, with…
Read MoreCharacteristics of a Will
Which of the following statements concerning a Will are correct? A will can be altered, amended, or completely rewritten at any time before a person’s death. A will cannot be rewritten but can be amended at any time by a codicil. A will must be signed by the maker and usually must be witnessed by…
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