Posts by Dan Madden, CFP®
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…
Read MoreRatio Percentage Test
Assume that, of the 100 employees eligible for participation in G Company’s qualified pension plan, 20 are highly-compensated employees, and all 20 participate. What is the minimum number of G Company’s nonhighly-compensated employees that must participate in G Company’s qualified pension plan to meet the ratio percentage test? 20 50 56 70 CLICK TO REVEAL…
Read MoreValue of CFP® Certification to Female Advisors
CFP® Board Updates A recent independent study from AITE group revealed the strengths and unique characteristics female CFP® Professionals bring to wealth management practices and their clients. And in line with the CFP Board’s view, the study also concluded an urgent need for more female CFP® Professionals – specifically client facing. The study, titled “Building…
Read MoreDefining an Insurance Contract
A Sec. 303 redemption is most likely appropriate for which of the following estates? At Fred’s death, Fred owned all of his assets including the stock of a closely-held corporation in joint tenancy WROS with his wife. Before Gloria’s death, she transferred all of her assets including the stock in a closely-held corporation to an…
Read MoreAnnual Return and Compounding
Course: Fundamentals of Financial PlanningLesson 5: Using the Calculator Student Question: My question relates to being able to clearly distinguish when the CFP Board exam will require an annual, or other period for the answer. Question 5(b) asks: “What is the rate of return on Investment 2 using daily compounding?” What is the annual rate…
Read MoreSection 303 Redemption
A Sec. 303 redemption is most likely appropriate for which of the following estates? At Fred’s death, Fred owned all of his assets including the stock of a closely-held corporation in joint tenancy WROS with his wife. Before Gloria’s death, she transferred all of her assets including the stock in a closely-held corporation to an…
Read MoreValidating and Measuring Competency
CFP® Board Updates For the past decade or so, the CFP Board has been putting an increased emphasis on the importance of being able to validate and measure competency for CFP Professionals. While the certification itself signifies that someone has mastered the required body of knowledge, that knowledge alone isn’t enough to truly become a…
Read MoreDeducting Advisory Fees
Course: Income Tax PlanningLesson 10: Recognition of Expenses, Losses, and Deductions Student Question: Hi I read that advisory fees are no longer deductible. So in this question (below), is it deductible because this is treated as a business deduction since Roger is Self-Employed? Alisha Sheridan, A CFP licensee and fee-only financial planner, has assisted Roger…
Read MoreIdentifying Monetary Policy
Which of the following is a monetary policy that will tighten the money supply? Sell government securities Lower the discount rate Decrease government spending Increase taxes CLICK TO REVEAL ANSWER Expand A is the answer. Selling government securities is a monetary policy that will tighten the money supply as the cash used to purchase the…
Read MoreLife Insurance in the Gross Estate
Which of the following assets would be included in Martin’s gross estate? Life insurance on Martin’s life purchased one year before he died by the trustee of Martin’s irrevocable life insurance trust. Life insurance on Martin’s life purchased by Martin’s wife two years before he died. Life insurance on Martin’s life purchased three years before…
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