Posts by Dan Madden, CFP®
CFP® Practice Question: Mortgage Refinance
Brandon refinanced his home mortgage to a 30-year fixed mortgage with biweekly payments. How much is each payment if he owed $250,000 at the time of the refinance and the interest rate is 5%? $619 $671 $1,336 $1,342 CLICK TO REVEAL ANSWER Expand A is the answer. Brandon pays his mortgage every two weeks, which…
Read MoreCFP® Practice Question: Net Worth Increase
During the year, Michelle paid down her car loan by $5,000 and her school loan by $3,000. She also contributed $5,000 cash from her checking account to an IRA. Michelle’s investment account grew by $10,000 during the year. How much did Michelle’s net worth increase for the year? $8,000 $13,000 $18,000 $23,000 CLICK TO REVEAL…
Read MoreCFP® Practice Question: Bankruptcy Discharges
Chuck lost his job last year when his company moved their factory overseas. Chuck has been unable to find another job and had to file for a Chapter 7 bankruptcy. Which of the following debts can be discharged in the bankruptcy? $10,000 of rent he owes his landlord $20,000 of taxes he owes the IRS…
Read MoreIdentifying Skip and Non-Skip persons.
Course: Estate Planning Lesson 7: Transfer Taxation IV – Generation Skipping Transfers Student Question: Wouldn’t Ellen be a non-skip person since Jane is deceased and she bumps up the ladder one step to be just one generation behind?? (See question below in which Ellen is identified as a skip person.) Question 1: The following chart shows the…
Read MoreCFP® Practice Question: Investment Advisors Act of 1940
Which of the following individuals need to register with the SEC under the Investment Advisers Act of 1940? Adam, who retired last year from a big brokerage house but he recently started providing services to 12 clients who live in his neighborhood that he met while out golfing. Belinda, who writes weekly investment articles for…
Read MoreCFP Board Career Center Career Fair
Don’t miss out! There’s still time to sign up for the CFP Board Career Center Career Fair. Join us on Wednesday, April 19, from 1-5 PM (ET) for an exclusive opportunity to connect with recruiters from top employers in the financial services industry—all without leaving your home or office! Don’t miss your chance to engage…
Read MoreStudent Question of the Week: Taxation of Life Insurance Proceeds
Student Question from KrishnaCourse: Insurance Planning Student Question: I think I’m missing something w/this concept. I don’t understand how life insurance proceeds would be taxable to the owner’s estate when the beneficiary is someone else? Example: If I am the policy owner and I purchase life insurance on myself and name my sister as the…
Read MoreCFP Board Online Career Fair
The CFP Board is hosting an online career fair on September 13, from 1-4pm (EDT). This provides a great opportunity to connect with organizations like Northwestern Mutual, Fidelity, Vanguard, and many more. Participants will be connected directly with representatives from organizations for 1-on-1 text-based chats. To learn more about the career fair and register to…
Read MoreCFP® Practice Question: Taxation at Parents’ Marginal Rate
Jennifer and Ben have been extremely successful in transferring some of their money to their children over the past several years. The following events took place in the current year: Jan, age 13, earned $1,300 in interest. Bill, age 20 and NOT a student, earned $2,500 in dividends, interest, and capital gains and $1,800 working…
Read MoreCFP® Practice Question: Inherited Property
Three years prior to Matthew’s death, he inherited property that was taxed in his father’s estate. What percent credit would Matthew receive on this inherited property in his own estate? A. 100% B. 80% C. 60% D. 40% E. 0% CLICK TO REVEAL ANSWER Expand Correct answer is B. Full credit is allowed if the…
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