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CSI AFP-Exam-1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Tax Planning | 14% | - Registered Plans - Income Tax Fundamentals - Tax-Efficient Strategies - Tax Deductions and Credits |
| Topic 2: Client Relationship and Practice Management | 6% | - Client Discovery - Practice Management - Communication and Advisory Process |
| Topic 3: Professional Conduct and Regulatory Compliance | 10% | - Compliance Responsibilities - Ethics and Professional Standards - Regulatory Requirements |
| Topic 4: Investment Planning | 17% | - Asset Allocation - Investment Products - Investment Theory - Portfolio Construction |
| Topic 5: Retirement Planning | 17% | - Registered Retirement Savings Plans - Retirement Needs Analysis - Retirement Income Strategies - Pension Plans |
| Topic 6: Risk Management and Insurance | 12% | - Risk Transfer Strategies - Risk Assessment - Disability and Health Insurance - Life Insurance |
| Topic 7: Estate Planning | 13% | - Wills - Powers of Attorney - Estate Transfer Strategies - Trust and Beneficiary Planning |
| Topic 8: Asset and Liability Management | 11% | - Debt Management - Personal Balance Sheet Analysis - Cash Flow Management - Budgeting |
CSI Applied Financial Planning Certification Exam 1 (AFP) Sample Questions:
1. Samantha is meeting with a financial planner for the first time, seeking help with both investing and debt management. She's finding it hard to get ahead because she recently graduated with student debt, started a new career in her field, and is adding credit card debt each month. What recommendation should the financial planner propose?
A) Samantha should review her budget.
B) Samantha should eliminate her credit card and use her debit card for purchases.
C) Samantha should prioritize reducing her student loan debt.
D) Samantha should set up automatic RRSP payroll deductions.
2. Ali wishes to retire in five years. His financial planner calculates that he needs to save an additional $40,000 to meet his retirement income objectives. What would Ali's financial planner advise him to do in order to meet his retirement income objectives?
A) Invest more in equity market to achieve a higher return.
B) Reduce current expenses.
C) Take out a mortgage to invest and fund some of the retirement income shortage.
D) Purchase a whole-life insurance and invest within the policy.
3. Leena and Harry are married and hold RRSPs with a value exceeding $500,000. They are concerned about their final tax liability and want to cover the taxes after they have both died. What would their financial planner recommend them to implement in order for the couple to achieve the objective?
A) Purchase a joint last-to-die permanent life insurance policy.
B) Set up a testamentary trust through their wills.
C) Transfer the funds into an inter vivos trust.
D) Update the beneficiary of the RRSP plans to each other.
4. The Andersons, a young couple, meet with their financial planner to review estate-planning opportunities.
They recently had a third child and are looking for the most cost-effective strategy to put in place during their working years to increase their estate value and reduce the tax burden at death for the benefit of their children.
What should the financial planner recommend?
A) Update beneficiary designation to the estate on their registered plans.
B) Set up a joint savings account with automatic monthly contributions.
C) Put in place a term survivorship life insurance policy.
D) They should each have permanent life insurance plans in place.
5. Miles tells Rasheed, his financial planner, that he would like to assign the growth assets in his portfolio to his children. Rasheed recommends Miles freeze his estate. What is the primary risk associated with an estate freeze?
A) The preferred shares taken back by the taxpayer may provide inadequate Income because of inflation.
B) It is easy to unwind an estate freeze, but the amount of income paid to the taxpayer will be inconsistent from year to year.
C) Once the estate freeze is in place, no future growth of the assets can occur.
D) Once the children hold the common shares, they can vote to withhold payment of the preferred dividend.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: A |
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