Posts by Dan Madden, CFP®
CFP 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…
Read MoreStudent Question of the Week: Skip versus Non-Skip Person
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…
Read MoreStudent Question of the Week: Series EE Bonds Interest
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…
Read MoreStudent Question of the Week: 529 Nonqualified Withdrawal Penalty
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…
Read MoreStudent Question of the Week: Interest Rate Sensitive Industries
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.…
Read MoreStudent Question of the Week: Maximum Bodily Injury Coverage
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…
Read MoreStudent Question of the Week: Buy-Sell Agreements
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…
Read MoreStudent Question of the Week: Emergency Fund
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…
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