Dan Madden, CFP® – Page 35 – Online CFP Program

Total CFP® Professionals Approaches 90,000

CFP® Board Updates Updated demographics from the CFP Board reveals there are now nearly 90,000 CFP® Professionals. With the CFP Board exam in July, we will no doubt cross over that mark and head towards 100,000. An impressive number when you consider there were just over 60,000 just a few years ago. These numbers are…

Solving for Annual Equivalent Rate

Course: Retirement PlanningLesson 3: Employee Protections and Employer Responsibilities in Qualified Plans Student Question: I am confused as to how to get the correct answer for question 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…

Sale of Home by Surviving Spouse

April’s husband Jay died 5 years ago when their home was worth $600,000. Due to the soft real estate market, April kept the house until the housing market recovered. She finally sold the home this year for $950,000. What is the amount of April’s taxable gain or loss if she bought the home jointly with…

401(K) Deferral Example

Course: Retirement PlanningLesson 3: Employee Protections and Employer Responsibilities in Qualified Plans Student Question: I failed to understand how $11,600 would be the correct answer to the question below. Can you go through the actual calculation? Belinda Bigbux (age 40) earns $1,000,000 annually as a test pilot. She wishes to defer 10% of her compensation…

OASDI Disability Income Benefits

Which of the following statements concerning OASDI disability income benefits is correct? Disability is defined as the inability to perform all major duties of the insured’s own occupation. Unless specifically exempted, a waiting period of 12 months must be satisfied. If the disabled worker is also receiving workers compensation benefits, the full OASDI benefit is…

Section 179 Expensing

Which of the following expenses can Vicki expense entirely under Section 179 expense assuming she meets all other requirements? $10,000 for a new coat of paint in the lobby and office $20,000 for a new roof on the warehouse $30,000 for vacation $25,000 for new computers CLICK TO REVEAL ANSWER Expand D is the answer.…

Basis of Inherited Property

Bill Farmer bought 1,000 acres of farmland for $300,000. When his oldest son married, Bill gave him 400 acres for a farm. When Bill died this year, the remaining 600 acres were divided in Bill’s will between his two younger sons. The 600 acres had a fair market value at Bill’s death of $600,000. Which…

Owner of a Grantor Trust

In which of the following situations would the grantor of a trust not be considered the owner? The grantor has a reversionary interest in the trust, of which the grantor’s son is the sole beneficiary, but the grantor cannot exercise this power until eight years after transfer of property to the trust. The grantor retains…

CFP Board Launches Spring Awareness Campaign

CFP® BOARD UPDATES The CFP Board has launched its Spring 2021 Public Awareness Campaign. The focus of the campaign is to raise awareness of the value of the CFP® Certification and the peace of mind that comes from having a CFP® Professional help prepare a financial plan. The Board has been running awareness campaigns since…

Power of Attorney over Financial Affairs

Laura is concerned she will develop Alzheimer’s disease later in life similar to her mother. Which of the following documents should Laura execute to make sure her son is able to handle her financial affairs in the event she does develop Alzheimer’s disease? Durable springing power of attorney Nondurable springing power of attorney Durable nonspringing…