Certified Financial Planner (CFP Level 1) Exam Dumps

CFP Exam Format | Course Contents | Course Outline | Exam Syllabus | Exam Objectives

The CFP® certification examination is a key requirement for achieving CFP® certification. By passing the exam, you demonstrate that you've attained the knowledge and competency necessary to provide comprehensive personal financial planning advice to your clients. CFP Board is here to guide you with the support, tools and resources you need for a successful exam experience.



To develop CFP® exam content that reflects the current practice of financial planning, CFP Board conducts regular Job Analyses to identify the important tasks performed by planners and assess the knowledge and skills needed to perform these tasks. This process is conducted by CFP® professionals and led by testing experts to assure the exam remains current, reliable, valid and legally defensible.



CFP Board works with volunteer CFP® professionals to develop the exam. These volunteers include Subject Matter Experts (SMEs) who serve as item writers and reviewers, as well as members of the Council on Examinations, which is made up of SMEs with considerable experience with the CFP® exam who provide final review and approval of all exam questions.



The criterion for passing the CFP® exam is established through a process known as Standard Setting, during which CFP® professionals determine the minimal competency level required to pass the exam. CFP Board does not predetermine the pass rate for the exam or have an established percentage of questions that must be answered correctly to pass.



The following Principal Topics are based on the results of CFP Boards 2015 Job Task Analysis. The Principal
Topics serve as a curricular framework and also represent subject topics that CFP Board accepts for continuing
education credit, effective January 2016. Each exam question will be linked to one of the following topics, in the
approximate percentages indicated following the general headings.



8 PRINCIPAL KNOWLEDGE TOPIC CATEGORIES:

A. Professional Conduct and Regulation (7%)

B. General Principles of Financial Planning (17%)

C. Education Planning (6%)

D. Risk Management and Insurance Planning (12%)

E. Investment Planning (17%)

F. Tax Planning (12%)

G. Retirement Savings and Income Planning (17%)

H. Estate Planning (12%)

A. PROFESSIONAL CONDUCT

AND REGULATION (7%)

A.1 CFP Boards Code of Ethics and Professional

Responsibility and Rules of Conduct

A.2 CFP Boards Financial Planning Practice Standards

A.3 CFP Boards Disciplinary Rules and Procedures

A.4 Function, purpose, and regulation of financial

institutions

A.5 Financial services regulations and requirements

A.6 Consumer protection laws

A.7 Fiduciary

B. GENERAL PRINCIPLES OF

FINANCIAL PLANNING (17%)

B.8 Financial planning process

B.9 Financial statements

B.10 Cash flow management

B.11 Financing strategies

B.12 Economic concepts

B.13 Time value of money concepts and calculations

B.14 Client and planner attitudes, values, biases and

behavioral finance

B.15 Principles of communication and counseling

B.16 Debt management

C. EDUCATION PLANNING (6%)

C.17 Education needs analysis

C.18 Education savings vehicles

C.19 Financial aid

C.20 Gift/income tax strategies

C.21 Education financing

D. RISK MANAGEMENT AND

INSURANCE PLANNING (12%)

D.22 Principles of risk and insurance

D.23 Analysis and evaluation of risk exposures

D.24 Health insurance and health care cost management (individual)

D.25 Disability income insurance (individual)

D.26 Long-term care insurance (individual)

D.27 Annuities

D.28 Life insurance (individual)

D.29 Business uses of insurance

D.30 Insurance needs analysis

D.31 Insurance policy and company selection

D.32 Property and casualty insurance

E. INVESTMENT PLANNING (17%)

E.33 Characteristics, uses and taxation of investment vehicles

E.34 Types of investment risk

E.35 Quantitative investment concepts

E.36 Measures of investment returns

E.37 Asset allocation and portfolio diversification

E.38 Bond and stock valuation concepts

E.39 Portfolio development and analysis

E.40 Investment strategies

E.41 Alternative investments

F. TAX PLANNING (12%)

F.42 Fundamental tax law

F.43 Income tax fundamentals and calculations

F.44 Characteristics and income taxation of business entities

F.45 Income taxation of trusts and estates

F.46 Alternative minimum tax (AMT)

F.47 Tax reduction/management techniques

F.48 Tax consequences of property transactions

F.49 Passive activity and at-risk rules

F.50 Tax implications of special circumstances

F.51 Charitable/philanthropic contributions and deductions

G. RETIREMENT SAVINGS AND

INCOME PLANNING (17%)

G.52 Retirement needs analysis

G.53 Social Security and Medicare

G.54 Medicaid

G.55 Types of retirement plans

G.56 Qualified plan rules and options

G.57 Other tax-advantaged retirement plans

G.58 Regulatory considerations

G.59 Key factors affecting plan selection for businesses

G.60 Distribution rules and taxation

G.61 Retirement income and distribution strategies

G.62 Business succession planning

H. ESTATE PLANNING (12%)

H.63 Characteristics and consequences of property titling

H.64 Strategies to transfer property

H.65 Estate planning documents

H.66 Gift and estate tax compliance and tax calculation

H.67 Sources for estate liquidity

H.68 Types, features, and taxation of trusts

H.69 Marital deduction

H.70 Intra-family and other business transfer techniques

H.71 Postmortem estate planning techniques

H.72 Estate planning for non-traditional relationships



1. ESTABLISHING AND DEFINING THE

CLIENT-PLANNER RELATIONSHIP

A. Identify the client (e.g., individual, family, business, organization)

B. Discuss the financial planning process

C. Explain scope of services offered

D. Assess and communicate ability to meet the clients needs and expectations

E. Identify and disclose conflicts of interest in client relationships

F. Discuss responsibilities of parties involved

G. Define and document the scope of the engagement

H. Provide client disclosures

1. Regulatory disclosure

2. Compensation arrangements and associated potential conflicts of interest

2. GATHERING INFORMATION NECESSARY

TO FULFILL THE ENGAGEMENT

A. Explore with the client their personal and financial needs, priorities and goals

B. Assess the clients level of knowledge, experience and risk tolerance

C. Evaluate the clients risk exposures (e.g., longevity, economic, liability, healthcare)

D. Gather relevant data including:

1. Summary of assets (e.g., cost basis information, beneficiary designations and titling)

2. Summary of liabilities (e.g., balances, terms, interest rates)

3. Summary of income and expenses

4. Estate planning documents

5. Education plan and resources

6. Retirement plan information

7. Employee benefits

8. Government benefits (e.g., Social Security, Medicare)

9. Special circumstances (e.g., legal documents and agreements, family situations)

10. Tax documents

11. Investment statements

12. Insurance policies and documents (e.g., life, health, disability, liability)

13. Closely held business documents (e.g., shareholder agreements)

14. Inheritances, windfalls, and other large lump sums

3. ANALYZING AND EVALUATING THE

CLIENTS CURRENT FINANCIAL STATUS

A. Evaluate and document the strengths and vulnerabilities of the clients current financial situation including:

1. Statement of financial position/balance sheet

2. Cash flow statement

3. Capital needs analysis (e.g., insurance, retirement, major purchases

4. Asset protection (e.g., titling, trusts, etc.)

5. Asset allocation

6. Client liquidity (e.g., emergency fund)

7. Government benefits (e.g., Social Security, Medicare)

8. Employee benefits

9. Investment strategies

10. Current, deferred and future tax liabilities

11. Estate tax liabilities

12. Tax considerations

13. Income types

14. Retirement plans and strategies (e.g., qualified plans, IRAs)

15. Accumulation planning

16. Distribution planning

17. Estate documents

18. Ownership of assets

19. Beneficiary designations

20. Gifting strategies

21. Executive compensation (e.g., deferred compensation, stock options, RSUs)

22. Succession planning and exit strategy

23. Risk management (e.g., retained risk and insurance coverage)

24. Educational financial aid

25. General sources of financing

26. Special circumstances (e.g., divorce, disabilities, family dynamics, etc.)

27. Inheritances, windfalls, and other large lump sums

28. Charitable planning

29. Aging and eldercare

30. Mental capability and capacity issues

B. Identify and use appropriate tools and techniques to conduct analyses including:

1. Financial calculator

2. Computer spreadsheet

3 Financial planning software

4. DEVELOPING THE RECOMMENDATION(S)

A. Evaluate alternatives to meet the clients goals and objectives

1. Sensitivity analysis (e.g., factors outside of client control)

B. Consult with other professionals as appropriate

C. Develop recommendations considering:

1. Client attitudes, values and beliefs

2. Behavioral finance issues (e.g., anchoring, overconfidence, recency)

3. Their interdependence

D. Document recommendations

5. COMMUNICATING THE RECOMMENDATION(S)

A. Present financial plan and provide guidance

1. Goals

2. Assumptions

3. Observations and findings

4. Alternatives

5. Recommendations

B. Obtain feedback from the client and revise the recommendations as appropriate

C. Provide documentation of plan recommendations and any additional disclosures

D. Verify client acceptance of recommendations

6. IMPLEMENTING THE RECOMMENDATION(S)

A. Create a prioritized implementation plan with timeline

B. Directly or indirectly implement the recommendations

C. Coordinate and share information, as authorized, with others

D. Define monitoring responsibilities with the client (e.g., explain what will be monitored, frequency of monitoring, communication method(s))

7. MONITORING THE RECOMMENDATION(S)

A. Discuss and evaluate changes in the clients personal circumstances (e.g., aging issues, change in employment)

B. Review the performance and progress of the plan

C. Review and evaluate changes in the legal, tax and economic environments

D. Make recommendations to accommodate changed circumstances

E. Review scope of work and redefine engagement as appropriate

F. Provide ongoing client support (e.g., guidance, education)

8. PRACTICING WITHIN PROFESSIONAL AND REGULATORY STANDARDS

A. Adhere to CFP Boards Standards of Professional Conduct

B. Manage practice risk (e.g., documentation, monitor client noncompliance with recommendations)

C. Maintain awareness of and comply with regulatory and legal guidelines

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CFP PDF Sample Questions

CFP Sample Questions

Financial
CFP
Certified Financial Planner (CFP)
https://killexams.com/pass4sure/exam-detail/CFP
Answer: A
QUESTION: 8
According to the _______, financial planners are not subject to the control of the act if they are:
a bank or holding company that is not an investment company; a lawyer, accountant, engineer, or
teacher who provides investment advice incidentally; a broker, dealer, or registered
representative whose advice is incidental; the publisher of a magazine or journal that discusses
financial planning; a person whose advice is limited to those securities guaranteed by the federal
government; any other person not within the law as specified by the SEC
A. Advisor Decision 1932
B. Advisor Decision 1935
C. Investment Advisors Act of 1948
D. Investment Advisors Act of 1940
Answer: D
QUESTION: 9
A ___________ is a multiple-employer trust that can be used to prefund employee benefits.
A. voluntary employee beneficiary association (VEBA)
B. voluntary employee care association (VECA)
C. involuntary employee beneficiary association (IEBA)
D. involuntary employee care association (IECA)
Answer: A
QUESTION: 10
A ______ is the right of an employee to receive cash and/or stock equal to the increase in the
value of the company's stock after the date of purchase.
A. stock appreciation duty
B. stock appreciation right
C. stock appreciation purchase
D. stock appreciation option
Answer: B
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CFP 1) education

CFP 1) education :: Article Creator

licensed financial Planner (CFP): Definition, What CFPs Do

what's a certified fiscal planner?

an authorized financial planner (CFP) is a sort of monetary advisor who possesses one of the crucial rigorous certifications for monetary planning potential. They ought to have several years of event involving fiscal planning, flow the CFP exam and cling to a strict moral average as set by way of the certified economic Planner Board of requirements.

not like any other kinds of fiscal advisors, certified monetary planners are held to a fiduciary common, which means they are obligated to behave of their client's top-quality interests.[0]

What does an authorized monetary planner do?

financial planners who earn a CFP designation ought to show proficiency in chance administration, funding, tax, retirement, salary and property planning.[0]

This capacity that they could work with purchasers to deliver finished capabilities throughout a large spectrum of fiscal planning concerns.

CFPs who give holistic planning can support you to create and keep a financial statement by determining your fiscal goals and discussing your latest financial circumstance and urge for food for chance. they could also advise on retirement planning, saving for brief- and lengthy-term dreams, identifying investments and tackling debt.

Some CFPs focus on a definite area, corresponding to divorce or retirement planning, while others tend to work with specific purchasers, like small-company house owners or retirees. on account of this, it’s advantageous to have a concept of the capabilities you need earlier than you select a CFP.

how to become a licensed financial planner (CFP)

It’s no longer convenient to develop into an authorized economic planner, and for first rate motive. helping americans navigate their price range is a vital job. On general, it takes between 18 and 24 months to develop into a CFP and can cost at the least $925 in case you have already got an undergraduate diploma and can pass the coursework requirement.

Candidates who don't cling latest economic designations usually additionally need to fulfill an adventure requirement, which may take from 24 to 36 months to comprehensive. here’s what else you are going to need to do:

1. comprehensive the education requirement

The CFP Board requires completion of specific coursework on financial planning and a bachelor’s diploma or larger. candidates have as much as five years from the date they circulate the exam to receive their bachelor’s diploma. folks that have completed connected classes during the past — or who already hold definite kinds of expert credentials or designations — may well be eligible to bypass the CFP Board–mandated coursework.[0]

certified economic Planner Board. Eligibility. Accessed may also 18, 2023.

2. flow the examination

The exam includes one hundred seventy diverse-alternative questions to be accomplished in a total of six hours. in response to the CFP Board, a typical of 68% of first-time exam-takers handed in 2022.[0]

three. gain expert journey

to fulfill the experience requirement, potential CFPs should comprehensive either 6,000 hours of professional event concerning monetary planning or 4,000 hours of apprenticeship that meets extra necessities. These hours may also be completed both within 10 years earlier than taking the exam and/or inside 5 years after passing it.

four. Adhere to the ethical commonplace

The ultimate steps of fitting a CFP are to sign the Ethics statement, through which you decide to acting as a fiduciary on your clients, and move a history assess performed with the aid of the CFP Board.

How much does working with a CFP can charge?

not all and sundry needs aid with their funds, but for people that do, having a CFP in your nook may also be invaluable. in case you don't seem to be bound a way to prepare your finances, navigate investing or balance your fiscal priorities, a CFP can aid.

The 2020 Kitces analysis survey on fiscal planning found that CFPs cost, on usual, $1,800 or $2,500 for a finished financial plan, $250 for hourly services and $4,000 for flat-payment retainer capabilities.[0]

And whereas there isn't any set payment that CFPs charge, it’s continually greater than what a non-licensed marketing consultant may cost.

online fiduciary financial advisors, some of which offer access to CFPs, usually can charge a small percentage of your assets beneath administration, frequently between 0.3% and 1%. (examine greater about how plenty a economic marketing consultant costs.)

How do I discover an authorized fiscal planner?

Some on-line fiscal planning functions present access to CFPs for only what an in-grownup consultant expenses. The CFP Board presents a listing of all its licensed CFPs, which makes it handy to locate an in-person marketing consultant to your enviornment.[0]

This web page additionally means that you can investigate a CFP’s certification reputation and determine for any circumstances of disciplinary motion.

what is the change between a CFP and a CFA?

The quite a lot of designations monetary advisors grasp may cause some confusion. more often than no longer, a economic advisor who's a CFP may be able to support you along with your economic planning wants, but different advisors may be capable of enhanced help you in definite areas, comparable to tax planning. Some advisors even have multiple designations, making them greater aggressive within their field.

listed below are just a few average designations an consultant can have.

Chartered financial analyst: CFAs specialize in investment evaluation and portfolio administration. while CFPs usually help individual clients with their economic planning, CFAs regularly function monetary advisors for companies.

certified public accountant: CPAs are a little greater diverse from one of the crucial different monetary advisory certifications. The CPA certification is regular amongst tax preparers and accountants (in spite of the fact that CPA has the observe "accountant" in it, not all accountants have CPA certifications). in case your financial marketing consultant has a CPA, they may be in a position to aid you optimize your tax condition.

Chartered fiscal advisor: while ChFCs are much less common than CFPs, the two certifications require equivalent coursework, and recipients of each and every are likely headed down the equal career direction: economic advisory and planning features. ChFCs might also have greater working towards in up to date fiscal planning themes, comparable to behavioral finance, planning for identical-intercourse couples and planning after a divorce, however CFPs have greater stringent academic and examination necessities.

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what is the difference between a CFP and a financial consultant?

The leading change between a CFP and a fiscal guide is that CFPs hang a certification that ensures they have a number of years of experience and are held to a fiduciary standard. The time period economic advisor, in spite of this, doesn't necessarily denote a specific credential. it's an umbrella term that refers commonly to the many different styles of financial advisors.

bear in mind, when you've got any doubts about your consultant’s CFP repute, that you can examine their popularity on the CFP Board site.

payment-best vs. payment-based economic guide

it be also crucial to accept as true with how exactly your guide is getting paid. this is decided partly by even if they're a price-only advisor or a charge-primarily based marketing consultant.

fee-only advisors are solely paid by their consumers, developing fewer alternatives for conflicts of activity. fee-based mostly advisors can acquire a fee on items they sell, which may occasionally create these conflicts, akin to suggesting a worse product over a more robust one as a result of they might receive a fee. certain via their fiduciary responsibility, CFPs must put their shoppers’ needs first regardless of their fee structure (although it’s at all times a good idea to ask any marketing consultant, CFP or no longer, what their price structure is, and to work with a price-handiest advisor if viable).


References


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