CFP EXAM | LATEST UPDATE | QUESTIONS AND
ANSWERS | VERIFIED | 100% CORRECT
Topic 1: Financial Planning Process Answer - ...
6 step process: EGADIM Answer - 1. Establish Relationship
2. Gather Information
3. Analyze data
4. Develop plan
5. Implement
6. Monitor
Step 1: Establish Relationship Answer - • Services that will be provided
• compensation/billing
• Responsibilities of both client/planner
• Time frame of relationship
Step 2: Gather quantitative and qualitative data Answer - • It is important that
goals be defined before any recommendations
• A goal should be specific, prioritized and quantified
• Fact finder form
Step 3: Analyze data Answer - • Identify strengths and weaknesses
, • Analysis of current position
• Should be based on realistic assumptions
Step 4: Develop Plan Answer - • Objective
• Should be presented to client
• Mutually decide on revisions
• Prioritized list of implementation steps and timing
Step 5: Implement Answer - • Work closely with other professional team
members
• Help client with product acquisitions
Step 6: Monitor Answer - • Fed tax changes
• Economic changes
• Modifications to plan
Topic 2: Code of Ethics & Professional Responsibility + Disciplinary Rules
Procedures Answer - ...
Aspirational Principles Answer - • Integrity
• Objectivity
• Competence
• Fairness
• Confidentiality
• Professionalism
• Diligence
ANSWERS | VERIFIED | 100% CORRECT
Topic 1: Financial Planning Process Answer - ...
6 step process: EGADIM Answer - 1. Establish Relationship
2. Gather Information
3. Analyze data
4. Develop plan
5. Implement
6. Monitor
Step 1: Establish Relationship Answer - • Services that will be provided
• compensation/billing
• Responsibilities of both client/planner
• Time frame of relationship
Step 2: Gather quantitative and qualitative data Answer - • It is important that
goals be defined before any recommendations
• A goal should be specific, prioritized and quantified
• Fact finder form
Step 3: Analyze data Answer - • Identify strengths and weaknesses
, • Analysis of current position
• Should be based on realistic assumptions
Step 4: Develop Plan Answer - • Objective
• Should be presented to client
• Mutually decide on revisions
• Prioritized list of implementation steps and timing
Step 5: Implement Answer - • Work closely with other professional team
members
• Help client with product acquisitions
Step 6: Monitor Answer - • Fed tax changes
• Economic changes
• Modifications to plan
Topic 2: Code of Ethics & Professional Responsibility + Disciplinary Rules
Procedures Answer - ...
Aspirational Principles Answer - • Integrity
• Objectivity
• Competence
• Fairness
• Confidentiality
• Professionalism
• Diligence
