Posts by Dan Madden, CFP®
Internal Rate of Return Calculation
Course: Fundamentals of Financial PlanningLesson 5b: Using the HP 10bII Calculator Student Question: 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 CF4.…
Read MoreLife Insurance Policy Exclusions
Which of the following situations is most likely to be excluded from coverage under a standard life insurance policy? The insured dies from a heart attack while on vacation overseas. The insured dies in a car accident while driving under the influence of alcohol. The insured dies two months after purchasing the policy, and the cause…
Read MoreRecord Breaking March 2025 CFP Board Exam Results
CFP® Board Updates The CFP Board has announced the results of the March 2025 CFP® Certification Exam, which saw a record-breaking 3,854 candidates sit for the test during the March 18–25 window. This figure surpasses the March 2024 high of 3,683 exam-takers, signaling continued growth in the financial planning profession. The overall pass rate for…
Read MoreDeductible Passive Activity Losses
Course: Income Tax PlanningLesson 13: Passive Activities and the AMT Student Question: For this question I thought you were supposed to net the loss and income together? So I was looking for 30,000. Isn’t there a time where we are supposed to net together the losses and gains? Ray invests $75,000 into a limited partnership…
Read MoreRefinance Payment Calculation
Dale refinanced his home mortgage to a 30-year fixed mortgage with biweekly payments. How much is each payment if he owed $350,000 at the time of the refinance and the interest rate is 3%? $680 $771 $1,136 $1,242 CLICK TO REVEAL ANSWER Expand A is the answer. Brandon pays his mortgage every two weeks which…
Read MorePrivate Letter Ruling
A CFP® professional is working with a client who is considering a complex estate planning strategy involving the transfer of assets to a grantor retained annuity trust (GRAT). The client expresses concern about how the IRS might interpret a unique aspect of the proposed transaction. The CFP® professional suggests the client consult with a tax…
Read MoreS&P 500 as a Leading Economic Indicator
Course: Fundamentals of Financial PlanningLesson 2: Economic Concepts and Consumer Protection Laws Student Question: Hi. Why is the S&P 500 considered a leading economic indicator and NASDAQ is not? Both are part of the stock market. Instructor Response: The S&P 500 is a broader representation of the overall market, with 500 large-cap companies represented. NASDAQ…
Read MoreTraditional vs Roth IRA
Which of the following statements accurately describes a key difference between a Traditional IRA and a Roth IRA? A. Contributions to both Traditional and Roth IRAs are always tax-deductible, regardless of income level. B. Required minimum distributions (RMDs) must begin at age 73 for both Traditional and Roth IRAs. C. Qualified withdrawals from a Roth…
Read MoreCFP Board Censures 5 Professionals
CFP® Board Updates Learning from the experiences of other CFP® professionals—especially those who have had their right to use the CFP® marks suspended or revoked—can be an incredibly valuable exercise for anyone in the profession. These real-world cases highlight how missteps in ethics, compliance, or client communication can have serious professional consequences. By studying these…
Read MoreMarket Value of a Bond
Emily is reviewing a client’s fixed-income portfolio and evaluating a 10-year, $1,000 par value corporate bond with a 5% annual coupon rate. The bond pays interest annually. Current market interest rates for similar bonds have risen to 7%. What is the approximate market value of the bond today? A. $1,000 B. $859 C. $928 D. $1,137 CLICK…
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