Posts by Dan Madden, CFP®

Sarah, a 40-year-old single mother with two dependent children, is looking for life insurance coverage to provide financial security for her family. She has a stable job with a salary of $80,000 per year, $50,000 in savings, and a mortgage balance of $250,000. Sarah wants a policy that offers the most affordable way to provide…

Michael, a 68-year-old widower, wants to ensure that his estate passes efficiently to his two children while minimizing estate taxes and avoiding probate. His estate is valued at $5 million, and he has a revocable living trust, a will, and a durable power of attorney. Which of the following strategies would be most effective in…

John and Emily are married and file their taxes jointly. In 2024, they had the following expenses: $8,000 in mortgage interest on their primary residence $4,500 in state income taxes $3,000 in property taxes $2,000 in charitable donations $7,000 in medical expenses (their adjusted gross income is $100,000) If John and Emily want to maximize…

Jennifer and Mark have a 14-year-old son, Ryan, who earned $500 in wages from a part-time job and received $3,000 in interest income from an investment account set up by his grandparents. How will Ryan’s income be taxed under the “kiddie tax” rules for 2025? The entire $3,500 will be taxed at Ryan’s tax rate.…

Lisa, a CFP® professional, is working with her client, Tom. After gathering all necessary information about Tom’s financial situation, including his income, expenses, assets, liabilities, and risk tolerance, Lisa analyzes the data. She identifies that Tom’s current investment allocation is not aligned with his long-term retirement goals and recommends reallocating his portfolio to better match…

Sarah, a CFP® professional, is working with her client, Mark, who wants to ensure that his assets are distributed efficiently to his heirs and that his minor children are cared for in the event of his death. During their discussion, Sarah learns that Mark has a will but no other estate planning documents. Mark also…

Janet, a CFP® professional, is meeting with a prospective client, Thomas. During their conversation, Thomas mentions that he is looking for a financial advisor who can help him invest in sustainable and socially responsible funds. Janet does not have significant experience or expertise in sustainable investing but is eager to take on Thomas as a…

Emily, a CFP® professional, has her first meeting with a new client, David. During the meeting, Emily asks David about his financial goals, current assets, liabilities, and personal circumstances. She also explains the financial planning process, the services she provides, and the fees associated with her work. Which step of the 7-Step Financial Planning Process…