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CSI AFP-Exam-1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Tax Planning | 14% | - Tax-Efficient Strategies - Registered Plans - Income Tax Fundamentals - Tax Deductions and Credits |
| Client Relationship and Practice Management | 6% | - Client Discovery - Communication and Advisory Process - Practice Management |
| Risk Management and Insurance | 12% | - Life Insurance - Disability and Health Insurance - Risk Assessment - Risk Transfer Strategies |
| Retirement Planning | 17% | - Registered Retirement Savings Plans - Pension Plans - Retirement Needs Analysis - Retirement Income Strategies |
| Asset and Liability Management | 11% | - Cash Flow Management - Personal Balance Sheet Analysis - Budgeting - Debt Management |
| Professional Conduct and Regulatory Compliance | 10% | - Regulatory Requirements - Ethics and Professional Standards - Compliance Responsibilities |
| Estate Planning | 13% | - Estate Transfer Strategies - Powers of Attorney - Trust and Beneficiary Planning - Wills |
| Investment Planning | 17% | - Investment Theory - Portfolio Construction - Asset Allocation - Investment Products |
CSI Applied Financial Planning Certification Exam 1 (AFP) Sample Questions:
1. Rob, age 42, is married with three children in elementary school. He works as an operations supervisor at a small manufacturing company, earning $70,000 annually. Rob asks his financial planner, Wendy, to liquidate his GIC investments worth $55,000 in order to use the sale proceeds to purchase a gold stock referred to him by his friend who expects the stock to appreciate significantly. Rob has not purchased stock before. What should be Wendy's reaction to Rob's query?
A) Refuse the order and tell Rob to manage his own investments.
B) Delay placing the order, advise Rob to take some time to reconsider.
C) Refrain from questioning Rob's judgment because the order is unsolicited.
D) Review Rob's risk tolerance, time horizon, and objectives.
2. Robert is meeting with his wealth advisor to review options to put a plan in place to save for his children's education. He has a daughter, age seven, and a disabled son, age four Robert would like to maximize his savings towards this goal, ensure the strategy is tax efficient and utilize available grants. Which option is most appropriate for Robert's plan?
A) Establish a family RESP and start contributions
B) Set up an education purpose trust account for both beneficiaries with a lump-sum investment
C) Establish individual RESP for his children
D) Establish a group RESP and start contributions
3. Maya, a financial planner, is meeting with a new client who was recently referred to her. In determining the client's overall risk tolerance, what qualitative data should Maya capture as part of her process?
A) Annual earnings data.
B) Personal net worth statement.
C) Stock option plan details.
D) Past investment experiences.
4. Lois is reviewing her client Raj's retirement plan. To stay on track, Raj's TFSA (with a current balance of
$10,000) will need to be worth $42,000 in five years. Raj is able to contribute his annual bonus of $5,000 at the end of each year. For Raj to stay on plan, what rate of return does Lois need to be targeting?
A) 5.64%.
B) 5.71%.
C) 6.36%.
D) 7.67%.
5. Two shareholders sign a buy-sell agreement requiring the surviving shareholder to purchase the deceased shareholder's shares at fair market value. What planning tool most directly funds the death-triggered purchase obligation?
A) Corporate-owned or cross-owned life insurance.
B) Travel accident insurance.
C) A personal line of credit in the surviving shareholder's name only.
D) A shareholder RRSP.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: A |
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