Dan Madden, CFP® – Page 6 – Online CFP Program

CFP Board Launches New Women Initiative

CFP® Board In The News The CFP Board has unveiled Accelerate & WIN, a powerful new initiative designed to fast-track the growth, leadership, and impact of women in the financial planning profession. Despite making up only 24% of CFP® professionals, women bring essential perspectives and strengths to a field that increasingly values diversity, flexibility, and…

Supply and Demand

Course: Fundamentals of Financial PlanningLesson 2: Economic Concepts and Consumer Protection Laws Student Question: I missed the below question because I thought number 2 was false. Wouldn’t price and demand move in a correlated way? The more the demand the higher the price? Which of the following statements concerning supply and/or demand is/are true? Thanks.…

Bond Price and Yield Movement

An investor purchases a 10-year corporate bond with a 5% coupon rate at par value. One year later, market interest rates increase to 6%. Which of the following statements is correct regarding the bond’s price and yield? The bond’s price will decrease, and its yield will increase. The bond’s price will increase, and its yield…

Municipal Bond Tax Equivalent Yield

John, a high-income investor in the 35% federal tax bracket, is considering purchasing a tax-free municipal bond with a yield of 3.5%. He is also evaluating a taxable corporate bond with a yield of 5.0%. Which of the following statements is correct regarding the tax-equivalent yield of the municipal bond? The tax-equivalent yield of the…

CFP Board Releases AI Guidance

CFP® Board Updates The CFP Board has released the Generative AI Ethics Guide: A Checklist for Upholding the Code and Standards to assist CFP® professionals in ethically integrating generative AI into their practices. The guide provides practical steps to address key concerns such as data privacy, accuracy, and bias, ensuring that AI enhances rather than compromises…

Common versus Preferred Stock

Michael is evaluating two different types of stocks for his investment portfolio: common stock and preferred stock. He wants to invest in a security that provides regular income while still offering some potential for appreciation. Which of the following statements best describes the key differences between common and preferred stock? Common stockholders receive fixed dividends,…

The Kiddie Tax

Sarah, age 16, is claimed as a dependent by her parents. In 2025, she earned $2,500 from a part-time job and received $6,000 in dividends from a custodial investment account her grandparents set up for her. Her parents have a marginal tax rate of 24%. How will Sarah’s unearned income be taxed under the Kiddie…

CFP Board’s Study Shows Impact of CFP® Professionals on Financial Well-Being

CFP® Board Updates The CFP Board has released the first findings from its Financial Planning Longitudinal Study, a decade-long research initiative analyzing the financial well-being of American households. The study’s initial results reveal a significant advantage for individuals who work with CERTIFIED FINANCIAL PLANNER® (CFP®) professionals, showing they achieve better financial outcomes and greater personal…

Establishing a Proper Emergency Fund

Jan, a single 35-year-old marketing manager, earns $90,000 annually and has monthly living expenses of $5,000, which include rent, utilities, food, transportation, and minimum debt payments. She has $8,000 in a high-yield savings account and $12,000 in a taxable brokerage account. Sarah wants to ensure she has an adequate emergency fund. Which of the following…

Skip Persons and the Generation Skipping Transfer Tax

Course: Estate PlanningLesson 7: Transfer Taxation IV – Generation Skipping Transfers Student Question: Regarding example below, would the death of the father, Stephen, not move Andrew one step up making him only one generation below Mrs. Jones? Would this not remove the generation skipping transfer tax? EXAMPLE: Upon her death, Mrs. Jones left her estate…