Posts by Dan Madden, CFP®
Debt Discharged in Chapter 7 Bankruptcy
Chuck lost his job last year when his company moved their factory overseas. Chuck has been unable to find another job and had to file for a Chapter 7 bankruptcy. Which of the following debts can be discharged in the bankruptcy? $10,000 of rent he owes his landlord $20,000 of taxes he owes the IRS…
Read MoreCFP Board Completes 2024 Compensation Study
CFP® Board Updates The CFP Board has released its updated Compensation Study, and it shows the CFP Professionals earn more than their fellow advisors without the certification. In fact, it revealed a median compensation of $192,000, which is 10% higher than those without the CFP® Marks. Not only that, CFP® Professionals report greater satisfaction with…
Read MoreUnderinsured Dwelling Penalty
Sam carries an H0-3 policy with $500,000 of coverage and a $2,000 deductible. It would cost $700,000 to rebuild Sam’s house. How much will his insurance company pay on a $200,000 claim related to a fire that started in Sam’s kitchen? $176,571 $178,571 $231,235 $198,000 CLICK TO REVEAL ANSWER Expand A is the answer. Sam…
Read MoreSaving for a Retirement Goal
Erika wants $50,000 a year in today’s dollars in retirement. She anticipates retiring in 10 years and living in retirement for 30 years. Erika can earn 7% on her investments and she expects inflation to average 4%. Approximately how much should Erika have saved by the day she retires to meet this goal? $913,000 $983,000…
Read MoreOwner of a Grantor Trust
In which of the following situations would the grantor of a trust not be considered the owner? The grantor has a reversionary interest in the trust, of which the grantor’s son is the sole beneficiary, but the grantor cannot exercise this power until eight years after transfer of property to the trust. The grantor retains…
Read MoreCFP Board Certification Marks Usage Updated
CFP® Board Updates Say goodbye to the TM after CERTIFIED FINANCIAL PLANNER. It’s now an ®. The U.S. Patent and Trademark Office officially registered the CERTIFIED FINANCIAL PLANNER® mark earlier this summer, strengthening the legal protections. This change signifies a great achievement for the CFP Board and Professionals alike. It means the mark is now…
Read MoreNet Unrealized Appreciation
Course: Retirement PlanningLesson 7: Income Distribution Planning for Qualified Plans Student Question: Regarding net unrealized appreciation, the value of company shares at the time of distribution would be considered the client’s cost basis in that any earnings in excess of that amount could be subject to short-term cap gains if sold within a year of…
Read MoreCharacteristics of a Will
Which of the following statements concerning a Will are correct? A will can be altered, amended, or completely rewritten at any time before a person’s death. A will cannot be rewritten but can be amended at any time by a codicil. A will must be signed by the maker and usually must be witnessed by…
Read MoreBasis on Sale of Gifted Stock
Tom gave his son, David, a birthday present of Big M stock with a fair market value of $50,000. Tom paid gift tax of $9,700 as Tom had previously given David earlier this year a cash gift. Tom’s adjusted basis in the stock on the date of the gift was $30,000. Three months later, David…
Read MoreCharacteristics of a Will
Which of the following statements concerning a Will are correct? (1) A will can be altered, amended, or completely rewritten at any time before a person’s death. (2) A will cannot be rewritten but can be amended at any time by a codicil. (3) A will must be signed by the maker and usually must…
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