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CSI AFP-Exam-1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Tax Planning | 14% | - Tax Deductions and Credits - Registered Plans - Income Tax Fundamentals - Tax-Efficient Strategies |
| Asset and Liability Management | 11% | - Debt Management - Personal Balance Sheet Analysis - Budgeting - Cash Flow Management |
| Risk Management and Insurance | 12% | - Life Insurance - Risk Transfer Strategies - Risk Assessment - Disability and Health Insurance |
| Retirement Planning | 17% | - Registered Retirement Savings Plans - Pension Plans - Retirement Needs Analysis - Retirement Income Strategies |
| Investment Planning | 17% | - Investment Products - Investment Theory - Portfolio Construction - Asset Allocation |
| Estate Planning | 13% | - Wills - Powers of Attorney - Trust and Beneficiary Planning - Estate Transfer Strategies |
| Client Relationship and Practice Management | 6% | - Communication and Advisory Process - Practice Management - Client Discovery |
| Professional Conduct and Regulatory Compliance | 10% | - Regulatory Requirements - Compliance Responsibilities - Ethics and Professional Standards |
CSI Applied Financial Planning Certification Exam 1 (AFP) Sample Questions:
1. A client asks when his RRSP must generally be converted to a retirement income vehicle. What should the planner explain?
A) Only when he stops working.
B) Only after all RRSP assets are withdrawn in cash.
C) On the day he turns 65.
D) By the end of the year he turns 71.
2. A married couple has a $480,000 mortgage with 15 years remaining. They want the mortgage retired if either spouse dies during that period. What insurance structure best fits this objective?
A) Joint permanent last-to-die policy.
B) Joint 15-year term first-to-die policy.
C) Individual annuities for both spouses.
D) Joint 15-year term last-to-die policy.
3. Rosa has just learned that her daughter Marissa, age 23, does not intend to return to university. She has been saving for her daughter's education since Marissa was 10 and is concerned there will be a significant tax liability. How should Rosa's financial planner advise her to utilize the funds when she redeems the RESP in order to offset the tax liability?
A) Deposit the full balance into her own RRSP.
B) Deposit the growth into her daughter's RRSP.
C) Deposit the growth into her own RRSP.
D) Deposit the full balance into her daughter's RRSP.
4. Richard reviewed his divorce settlement from his partner Alex with his advisor Maria. He is deciding between providing a lump sum spousal support payment of $60,000 or making monthly payments. If Richard's income is $200,000 and Alex's income is $40,000, what should Maria advise Richard about the tax implications for both Richard and Alex in regard to the lump sum payment?
A) Richard will deduct the payment and pay taxes on the remaining $140,000 of income and Alex will pay taxes only on his earned income of $40,000.
B) Richard will pay taxes on the entirety of the $200,000 and Alex will pay taxes only on his earned income of $40,000.
C) Richard will deduct half of the lump-sum support payment and pay taxes on the remaining $170,000 of income and Alex will claim the other half of the lump-sum support payment in addition to his earned Income of $40,000.
D) Richard will deduct the payment and pay taxes on the remaining $140,000 of income, and Alex will pay taxes on the lump-sum payment of $60,000.
5. Bruna is a senior financial planner. At 4 p.m. on Friday afternoon (an hour before closing), her manager asks her to complete the following:
Fix a mutual fund trade that was entered incorrectly by a junior financial planner.
Call her client to advise him that his account is overdrawn, and the bank will refuse recent payments unless he credits the account before 5 p.m.
Bruna determines she can only complete one of the two tasks before the end of the business day. How should Bruna address her supervisor's request?
A) Bruna should prioritize the client with the overdrawn account since he is one of her clients. She should then reverse the incorrect trade the following business day.
B) Stay after hours until she completes both tasks.
C) Ask the manager which of the two problems should be prioritized. Then ask the manager to delegate the other task to a colleague.
D) Bruna should let the client's payments bounce since the client is unable to manage his cash flow and Bruna should prioritize correcting the trade.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: C |





