Dan Madden, CFP® – Page 3 – Online CFP Program

The Business Cycle

Which phase of the business cycle is typically characterized by declining corporate profits, rising unemployment, tightening credit conditions, and falling consumer confidence? Expansion Peak Contraction Trough CLICK TO REVEAL ANSWER Expand C is the answer.

529 Plan Contribution Limits

Course: Fundamentals of Financial PlanningLesson 6: Educational Savings Techniques Student Question: Hi, Do the limits on 529 plan contributions apply to that specific account, the child, or the contributor? Is it possible for a contributor to have more than one 529 plan, if they’ve reached the limit on one? Instructor Response: Hi Good question. It’s…

Social Security Disability Insurance Eligibility

In 2026, Thomas is age 45 and works as an electrician. Due to a severe spinal injury, he is no longer able to perform substantial work. His physician expects the condition to last at least 18 months. Thomas currently earns $3,820 per month from part-time consulting work. He is not blind and has sufficient work credits to…

Internal Rate of Return Calculation

Course: Fundamentals of Financial PlanningLesson 5b: Using the HP 10bII Calculator Student Question: Hi, 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…

Backdoor Roth IRA Taxation

In 2026, Maria, age 52, is single and has MAGI of $210,000, making her ineligible to contribute directly to a Roth IRA. She makes a $7,500 nondeductible contribution to a traditional IRA and immediately converts the entire balance to a Roth IRA. At the time of conversion, Maria also owns a rollover traditional IRA from a former…

Replacement Cost Reimbursement

Course: Insurance PlanningLesson 6: Commercial Property and Liability Insurance Student Question: Hi, The way I understand the example below is that since the cost, current value and depreciation are not relevant, it seemed to me that the building is only insured for 77.77% of its replacement value ($14,000,000/$18,000,000). This would lead to the payout from…

Dying Intestate

If a client dies intestate, which of the following statements is correct? All assets automatically pass by beneficiary designation The state determines how probate assets are distributed The executor can distribute assets according to verbal wishes Property held jointly with rights of survivorship becomes subject to probate CLICK TO REVEAL ANSWER Expand B is the…

Skewness versus Kurtosis

Course: Investment PlanningLesson 13: Asset Allocation Student Question: Hello, Can you help me understand the difference between Kurtosis and Skewness? I can’t quite piece it together. Thanks! Instructor Response: Great question, You’re right that as total capital in a pooled investment grows, the overall dollar amount of earnings can Entire books have been written on this…

HO-3 Coverage

Under an HO-3 homeowners’ policy, which of the following losses is NOT covered unless an endorsement is purchased? Fire damage to the dwelling Theft of personal property Damage caused by a burst pipe Flood damage from rising groundwater CLICK TO REVEAL ANSWER Expand D is the answer. An HO-3 policy covers the dwelling for open perils and…

Solving for Annual Equivalent Rate

Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: Hello, I am confused as to how to get the correct answer for number 4. Jackie invests her bonus at the beginning of this calendar year. If she earns 7% compounded monthly, what is the annual equivalent rate? Round your answer to two decimal places.…