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CSI AFP-Exam-1 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Taxation Concepts | - Personal income tax principles - Tax-efficient investment strategies |
| Insurance and Risk Management | - Life and health insurance fundamentals - Risk mitigation strategies in financial planning |
| Investment Planning | - Investment products and risk-return profiles - Asset allocation and portfolio basics |
| Retirement Planning | - Retirement savings vehicles and planning principles |
| Financial Planning Foundations | - Financial planning process and client relationship management - Ethics and professional standards in financial advising |
CSI Applied Financial Planning Certification Exam 1 (AFP) Sample Questions:
1. Daniel, age 55, plans to continue working for AMG Telecommunications Corporation until he retires at age
60. The company has a defined contribution plan and Daniel is looking for the best option that will allow him to receive the highest guaranteed income throughout his retirement. He is not concerned about leaving an estate and feels that interest rates will be at high levels as he nears retirement. What planning strategy should Daniel's financial planner recommend he implement to achieve this objective?
A) Use the proceeds to purchase a principal-protected note.
B) Use the proceeds to purchase a life annuity.
C) Transfer proceeds to a locked-in RRSP and purchase a laddered GIC.
D) Transfer proceeds to a LIRA and purchase a target date fund.
2. Sunil and Shashi are married and both age 45. Each is the personal care Power of Attorney (POA) for the other. They have no children. Shashi would like to revise the personal care POA to ensure that it reflects her medical wishes. How should their financial planner advise Shashi to help her achieve her goal?
A) Utilize her last will and testament.
B) Appoint someone other than Sunil as her POA for personal care.
C) Utilize a living will.
D) Appoint an alternate POA for personal care.
3. In which life cycle stage would a financial planner identify his client to be if they have a high mortgage balance and an unstable or lower income, and are willing to take on investment risk because of their longer time horizon?
A) Financial independence.
B) Accumulation.
C) Consolidation.
D) Gifting.
4. Demario, age 29, has started his own professional practice. He is single, has a mortgage, and his future earning power is his largest asset. Which insurance should receive priority?
A) Whole life insurance for estate equalization.
B) Travel medical insurance only.
C) Joint last-to-die life insurance.
D) Disability insurance.
5. Suzy, age 45, is meeting with a financial planner as she has recently inherited $1.25 million from her late aunt. Suzy has poor spending habits and would like to review options that would safeguard and help her receive stable cash flows. She does not have a lot of experience investing and would like to avoid making day- to-day investment decisions. Which type of investment account is most appropriate for Suzy?
A) Discretionary fee-based.
B) Separately managed.
C) Multi-mandate managed.
D) Straight life annuity.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: D |
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