Posts by Dan Madden, CFP®
Procedural Rules Effective June 30, 2020
CFP® Board Updates On June 30, 2020, the CFP Board will begin enforcement of the new Code of Ethics and Standards of Conduct. This will coincide with the expected begin date of the new Procedural Rules. For those who are not familiar, the Procedural Rules replace the current Disciplinary Rules and Procedures and the Appeal…
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…
Read MoreOASDI 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…
Read MoreRequired Insurance Penalty and Reimbursement
Course: Insurance PlanningLesson 6: Commercial Property and Liability Insurance Student Question: Hi Dan – On this review page, the correct answer for Question 2 (below) indicates that insurance will pay only over 97% of replacement cost. However, it says in the chapter that as long as the property is insured for more than 80% of replacement cost, the policy will pay the full cost…
Read MoreRetirement Funding Calculation
Erika wants $50,000 a year in today’s dollars in retirement. She anticipates retiring in 10 years and living in retirement for 30 years. Erika can earn 7% on her investments and she expects inflation to average 4%. Approximately how much should Erika have saved by the day she retires to meet this goal? $913,000 $983,000…
Read MoreDonating Appropriate Stock
Darryl Owens will report an AGI of $100,000 for this year on his federal income tax return. Darryl would like to make a gift to the local hospital of some stock. He would like to donate the stock that will provide the greatest income tax deduction for this year. Which of the following stocks should…
Read MoreSaving for a Retirement Goal
Erika wants $50,000 a year in today’s dollars in retirement. She anticipates retiring in 10 years and living in retirement for 30 years. Erika can earn 7% on her investments and she expects inflation to average 4%. Approximately how much should Erika have saved by the day she retires to meet this goal? $913,000 $983,000…
Read MoreCFP Board Removes Compensation Search Function
CFP Board Updates On March 2, 2020, the CFP Board notified all professionals that the compensation search function had been removed from the “Find Your CFP® Professional” tool on the letsmakeaplan.org website. The key decision point, according to the CFP Board, was that based on the new Code and Standards, all CFP® professionals are expected…
Read MoreAlimony and Gross Income
Cindy received the following payments from her ex-husband Jim under the terms of the divorce decree: $10,000 of back alimony payments from last year $20,000 of back child support payments from last year $30,000 of alimony payments for this year $40,000 of child support payments for this year How much does Cindy have to include…
Read MoreCarryover of Losses
The following information has been provided by a client for income tax purposes: $45,000 salary from an S Corporation where the client is a vice-president $3,500 loss from the S Corporation $1,500 loss from a 3% interest in a limited partnership $1,200 loss from a 10% interest in Middletown Partnership in which the client does…
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