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

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…

Annual Gift Tax Exclusion

In 2026, a married couple makes a gift of $60,000 to their adult child. They elect to split the gift. How much of the gift will be considered a taxable gift? $0 $22,000 $41,000 $60,000 CLICK TO REVEAL ANSWERExpandB is the answer. In 2026, the annual gift tax exclusion is $19,000 per donor.…

Value of Life Insurance in Buy-Sell Agreements

Course: Insurance Planning Lesson 17: Business Uses of Life Insurance Student Question: Do buy sell agreements accounts for projected growth of the company? Do the life insurance benefits increase over time to account for projected growth, or perhaps can they invest and grow conservatively to keep up with inflation (or COLA on the plan)? Thanks,…

Bond Interest Rate Risk

Which of the following bonds would be MOST sensitive to changes in interest rates? A 2-year Treasury bond A 5-year corporate bond A 10-year municipal bond A 30-year Treasury bond CLICK TO REVEAL ANSWERExpandD is the answer. Interest rate risk increases with longer maturities. A 30-year bond has the greatest duration and will experience…

Interest Rate Risk in a Bond

Course: Investment PlanningLesson 10: Fixed Income Securities Analysis Student Question: I’m not clear why holders of long-term bonds are subject to interest rate risk. If a 20-year bond is purchased at par with a coupon rate of 6.25% ($62.50/year), it seems to me that the investor would still receive $62.50 a year regardless of interest rate changes. What…

Roth IRA Withdrawal Taxation

A client withdraws $30,000 from her Roth IRA in 2026. The account consists of $20,000 in contributions and $10,000 in earnings. She is age 45 and does not meet any exception to the early withdrawal penalty. How will the $30,000 distribution be treated for tax purposes? Entire amount is tax-free and penalty-free Contributions are tax-free;…

Solving for Annual Equivalent Rate

Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: 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. I…