Posts by Dan Madden, CFP®

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…

Student Question: Hi Dan! I think I’m confused on my terminology. I always thought non-qualified plans were: SERP’s, Executive Deferred Comp., 457 Plans, etc. But in Lesson 1 of the Retirement Planning section, I see that IRA’s, SEP’s, 403(b)’s are considered “non-qualified plans.” Am I mixed up about this? Instructor Response: Hi Margie! I hope…

Student Question from EtebeCourse:  Estate Planning Student Question: Good evening, #7 on the review question…why would four business associates with equal partnership be tenants in common? I thought it would be JTWROS as their interest is equal and undivided. Thanks. 7.     An investment by four business associates, each wishing to contribute 25% of the purchase price. 100%…

Student Question from Margie LCourse:  Insurance Planning Student Question: Insurance policy dividends may be taxable if they are paid in cash to the policy owner, but what about dividends that remain in the policy to purchase additional coverage (Paid-Up Additions)? Are those dividends non-taxable as long as the coverage is not lapsed or surrendered? Instructor Response:…

Student Question from Ryan FCourse:  Estate Planning Student Question: Hi Dan,  I have a question about an estate planning concept.  I think I’m just reading it wrong, but I want to make sure I have a clear understanding.  What is the correct answer to this question, and why? A husband and wife wish to reduce the size…

Student Question from Mark PCourse:  Insurance Planning Student Question: In the question below, if the ACV had been over $300,000, would she have received that amount?  I know the correct answer is $281,250, but what if the ACV had been over $300,000? Jill owns a home that has a market value of $500,000, a replacement value…

Student Question from Natalie PCourse:  Insurance Planning Student Question: Hello! I am looking at question #2 that discusses the “contribution by equal shares” rule. However, I do not understand how they are getting the answer. 10% of $120,000 is $12,000 (not $25,000). Can you please explain? Thanks! Question 2 Three companies insure Josh’s $250,000 house. Insurer…