Posts by Dan Madden, CFP®

Student Question from David MCourse: Estate Planning Student Question: Hi Dan! Why is Hillary a non skip person in question 1 when she is the granddaughter of Sam and Sarah Parker? Instructor Response: Hi David! Good example of where to be careful on CFP Board exams.  While the diagram shows Sam and Sarah at the…

Student: Question from Matt F.Course: Fundamentals of Financial Planning Student Question: I have several clients that inquired about this recently – they have several Series EE bonds that are maturing or have matured. Do these bonds continue to pay interest after maturity? Is the interest the same amount if so? Thanks. Matt Instructor Response: Hey…

Student Question from Andrew S.Course: Fundamentals of Financial Planning Student Question: Under “penalties and restrictions for nonqual WDs from 529 plans”, what exactly is “this additional tax” mentioned in the third paragraph? Is it talking about the penalty or the penalty and income tax? Thanks. Andrew Instructor Response: Hi Andrew! This is a key topic…

Student Question from Grace R.Course: Investment Planning Student Question: Hi Dan! In the fundamental equity analysis discussion regarding sectors, it states that the Utilities sector is considered interest rate sensitive. Would you mind explaining how utilities are interest rate sensitive? Instructor Response: Hi Grace! Great to hear from you!  And a very good question here.…

Student Question from Safiya J.Course: Insurance Planning Student Question: Hi Dan, I hope you are doing well! I have a question about Question #8 (SHOWN BELOW) – what does the $300,000 mean in the coverage amount? I thought that was the maximum bodily injury coverage, but I must not be understanding that because I’m not…

Student Question from Holly SCourse: Income Tax Planning Student Question: Hi Dan. On this page, step 6 of the Stock Redemption steps seems incorrect. My understanding from a prior lesson was that the remaining owner % would be unchanged (stay at 33% in this example) since the corporation bought the deceased owner’s shares. What am…

Student Question from Sophie LCourse: Fundamentals of Financial Planning Student Question: Hi Dan, The adequate amount for an Emergency Fund is 3 months for married clients who both have substantial and reliable income. What is the generally accepted level, if any, for “substantial income”? In Question 3, I considered that $60,000 per spouse was not…

Student Question from Pam FCourse:  Fundamentals of Financial Planning Student Question: Hello, My question deals with a situation where a grandparent buys EE bonds for a grandchild and both the grandparent’s name and the grandchild’s name are listed as owners on the bonds.  In that situation, would the bonds be counted as the child’s asset…

Student: Question from Natalie PCourse:  Fundamentals of Financial Planning Student Question: Hello,  What is the general rule for using a negative number when entering payments? I am calculating the second problem on this web page and am having trouble determining why I need to use a negative when entering payments. Thanks so much! Charles has…

Student Question from Leslie GCourse:  Fundamentals of Insurance Planning Student Question: Hi Dan, I’m confused on how I would know whether or not to apply the 3.8% Medicare surtax in the following CFP Board released question.  How can I know without knowing their AGI? Your client’s federal marginal tax rate is 35% and the state…