Posts by Dan Madden, CFP®
High Satisfaction Among CFP Professionals
CFP® Board Updates The CFP Board has released findings from a recent survey of CERTIFIED FINANCIAL PLANNER® professionals, showing high satisfaction with their careers and highlighting the positive impact of CFP® certification on their professional lives. These insights come from the CFP Board’s 2024 survey, conducted by Heart + Mind Strategies LLC, which aimed…
Read MoreLisa and the 7 Steps
Lisa is a CFP® professional meeting a new client, Mark, for the first time. During their initial meeting, Lisa asks Mark about his financial goals, gathers his personal and financial information, and identifies his risk tolerance. Which step in the CFP Board’s 7-step financial planning process is Lisa primarily engaging in during this initial meeting?…
Read MoreCarryover of Losses
A client has provided the following information for income tax purposes: $55,000 salary from an S corporation where the client serves as vice-president $4,500 loss from the S corporation $2,000 loss from a 4% interest in a limited partnership $1,300 loss from a 15% interest in Bayside Partnership in which the client does not materially…
Read MoreReducing the AMT
A client, Sarah, is a 35-year-old single mother with two young children. She has a stable job with an annual salary of $80,000 and has accumulated $50,000 in a 401(k) plan. She also has $10,000 in an emergency savings account. Sarah expresses concern about saving for her children’s college education while ensuring she has enough…
Read MoreSchwab Advisor Services Donates $150,000 to the Women’s Initiative (WIN) Endowed Scholarship
CFP® Certificants in the News The CFP Board has announced a generous donation of $150,000 from Schwab Advisor Services, in collaboration with the Charles Schwab Foundation, to support the Women’s Initiative (WIN) Endowed Scholarship. This contribution raises the total scholarship fund to $500,000, reaching the required amount for the scholarship to begin awarding financial support.…
Read MoreReducing the AMT
Which of the following tax planning ideas would help Beth the most if she currently has to pay AMT taxes? Pay her $1,000 January mortgage payment before the end of the year. Pay her $2,000 January alimony payment to her ex-husband before the end of the year. Recognize a $3,000 short term capital gain on…
Read MoreDebt 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…
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