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CSI AFP-Exam-1 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Financial Planning Foundations | - Financial planning process and client relationship management - Ethics and professional standards in financial advising |
| Taxation Concepts | - Tax-efficient investment strategies - Personal income tax principles |
| Investment Planning | - Asset allocation and portfolio basics - Investment products and risk-return profiles |
| Retirement Planning | - Retirement savings vehicles and planning principles |
| Insurance and Risk Management | - Risk mitigation strategies in financial planning - Life and health insurance fundamentals |
CSI Applied Financial Planning Certification Exam 1 (AFP) Sample Questions:
1. What key question should be answered during the recommending strategies stage of the financial planning process?
A) What are the client's needs and goals?
B) How can the client achieve her goals?
C) Are the client's goals feasible?
D) How and by whom will the planner be compensated?
2. A business owner completes an estate freeze, taking back preferred shares with a fixed redemption value while children receive common shares. What is a primary risk of this strategy for the owner?
A) The owner's retained preferred shares may not provide adequate income or inflation protection.
B) The children can never benefit from future growth.
C) The freeze automatically eliminates all tax at death.
D) No future growth can occur in the corporation.
3. A client wants to increase net worth by identifying spending reductions and increasing monthly surplus.
Which document is most useful for this purpose?
A) Beneficiary designation form.
B) Net worth statement only.
C) Investment policy statement only.
D) Current cash flow statement and budget.
4. If a deceased person was entitled to rights or things at death, what strategy should the estate representative use to enhance the net estate value after tax?
A) Include the rights or things in the deceased's final personal tax return.
B) Transfer ownership of the rights or things to the beneficiaries of the estate.
C) File for annual tax reassessments on the terminal tax return until all rights or things are paid.
D) Include the rights or things in a second personal tax return for the deceased.
5. Francois and Brigitte are meeting with their financial planner, Robin. They would like to ensure that if one of them were to die suddenly that their mortgage would be paid in full. Their current mortgage has an outstanding balance of $400,000 with 10 years remaining. The couple are in good health and have a well- balanced financial plan that focuses on debt reduction and savings. Which type of insurance policy should Robin recommend to assist the couple in meeting their objective?
A) Joint whole life first-to-die policy.
B) Joint 10-year term first-to-die policy.
C) Joint 10-year term last-to-die policy.
D) Joint whole life last-to-die policy.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: B |
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