CFP COMPLETE EXAM PREP |ACTUAL QUESTIONS
AND VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Harry and Alice, both age 55, plan to retire at age 60. They have three children: Pete, age
32, a computer technician living in Atlanta; Sidney, age 30, a doctor who resides in
Indianapolis; and Mark, age 25, a web designer, who is married and lives in Chicago. They
also have three grandchildren. Most likely, in what phase in the financial life cycle are
Harry and Alice?
A)
Gifting phase
B)
Asset accumulation phase
C)
Conservation phase
D)
Distribution phase
CORRECT ANSWER
C
The answer is conservation phase. Harry and Alice are in the conservation phase of the
financial life cycle because they are between the ages of 45 and 60, their children are
independent, and they are approaching retirement.
Question 2
A CFP® professional who has monitoring and updating responsibilities must communicate
to a client which of the following factors?
Which actions, products, and services are and are not subject to the CFP® professional's
monitoring responsibility
1
,How and when the CFP® professional will monitor the actions, products, and services
How frequently the CFP® professional will update and change the client's financial goals
each year
How and when the CFP® professional will update the financial planning recommendations
A)
I, II, and IV
B)
I and III
C)
I and II
D)
II and IV
CORRECT ANSWER
A
The answer is I, II, and IV. A CFP® professional must analyze, at appropriate intervals, the
progress toward achieving the client's goals and discuss the results with the client. Goals,
recommendations, or selections of actions, products, or services must be updated when the
circumstances warrant such an update. Statement III is incorrect because the CFP®
professional does not unilaterally update the client's goals. The CFP® professional would
update the client's goals, if necessary, by re-engaging the financial planning process.
Question 3
Which of the following information you may obtain from a client is the best example of
qualitative information?
A)
The amount of his monthly net cash flow
B)
Whether he has executed a living will
C)
2
,The amount of annual income he requires for retirement purposes
D)
Whether he considers himself to be an experienced investor
CORRECT ANSWER
D
The answer is whether he considers himself to be an experienced investor. Whether a client
considers himself to be an experienced investor is qualitative because it cannot be
quantified in terms of a number or reduced to some form of tangible written document.
Question 4
A client who has become more concerned about losing what she has than in accumulating
more is in which financial life cycle phase?
A)
Preretirement phase
B)
Asset accumulation phase
C)
Distribution/gifting phase
D)
Conservation/protection phase
CORRECT ANSWER
D
The answer is conservation/protection phase. People generally become more risk averse in
the conservation/protection phase and become aware of the risks that were ignored in the
asset accumulation phase.
Question 5
3
, Which of the following uses of the CFP® certification marks is CORRECT?
John Doe, C.F.P.
John Doe, a CFP
John Doe, CERTIFIED FINANCIAL PLANNER™
John Doe, CFP®
A)
IV only
B)
II and IV
C)
I and III
D)
III and IV
CORRECT ANSWER
D
The answer is III and IV. Whenever a CFP® certificant uses the initials after his name (e.g., on
a business card), the initials must be followed by the ® symbol. If the words "CERTIFIED
FINANCIAL PLANNER" are used, they must be followed by a ™ because the words are subject
to trademark law. The initials should not include periods.
Question 6
Which of these is an obligation the CFP® certificant has to her current clients?
To maintain competence in all areas of financial planning
To eliminate material conflicts of interest that could affect the professional relationship.
To implement the client's financial planning recommendation(s) unless specifically excluded
from the scope of the engagement.
To have a reasonable basis for the recommendation or engagement of another professional
based on the other professional's reputation, experience, and qualifications.
4
AND VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Harry and Alice, both age 55, plan to retire at age 60. They have three children: Pete, age
32, a computer technician living in Atlanta; Sidney, age 30, a doctor who resides in
Indianapolis; and Mark, age 25, a web designer, who is married and lives in Chicago. They
also have three grandchildren. Most likely, in what phase in the financial life cycle are
Harry and Alice?
A)
Gifting phase
B)
Asset accumulation phase
C)
Conservation phase
D)
Distribution phase
CORRECT ANSWER
C
The answer is conservation phase. Harry and Alice are in the conservation phase of the
financial life cycle because they are between the ages of 45 and 60, their children are
independent, and they are approaching retirement.
Question 2
A CFP® professional who has monitoring and updating responsibilities must communicate
to a client which of the following factors?
Which actions, products, and services are and are not subject to the CFP® professional's
monitoring responsibility
1
,How and when the CFP® professional will monitor the actions, products, and services
How frequently the CFP® professional will update and change the client's financial goals
each year
How and when the CFP® professional will update the financial planning recommendations
A)
I, II, and IV
B)
I and III
C)
I and II
D)
II and IV
CORRECT ANSWER
A
The answer is I, II, and IV. A CFP® professional must analyze, at appropriate intervals, the
progress toward achieving the client's goals and discuss the results with the client. Goals,
recommendations, or selections of actions, products, or services must be updated when the
circumstances warrant such an update. Statement III is incorrect because the CFP®
professional does not unilaterally update the client's goals. The CFP® professional would
update the client's goals, if necessary, by re-engaging the financial planning process.
Question 3
Which of the following information you may obtain from a client is the best example of
qualitative information?
A)
The amount of his monthly net cash flow
B)
Whether he has executed a living will
C)
2
,The amount of annual income he requires for retirement purposes
D)
Whether he considers himself to be an experienced investor
CORRECT ANSWER
D
The answer is whether he considers himself to be an experienced investor. Whether a client
considers himself to be an experienced investor is qualitative because it cannot be
quantified in terms of a number or reduced to some form of tangible written document.
Question 4
A client who has become more concerned about losing what she has than in accumulating
more is in which financial life cycle phase?
A)
Preretirement phase
B)
Asset accumulation phase
C)
Distribution/gifting phase
D)
Conservation/protection phase
CORRECT ANSWER
D
The answer is conservation/protection phase. People generally become more risk averse in
the conservation/protection phase and become aware of the risks that were ignored in the
asset accumulation phase.
Question 5
3
, Which of the following uses of the CFP® certification marks is CORRECT?
John Doe, C.F.P.
John Doe, a CFP
John Doe, CERTIFIED FINANCIAL PLANNER™
John Doe, CFP®
A)
IV only
B)
II and IV
C)
I and III
D)
III and IV
CORRECT ANSWER
D
The answer is III and IV. Whenever a CFP® certificant uses the initials after his name (e.g., on
a business card), the initials must be followed by the ® symbol. If the words "CERTIFIED
FINANCIAL PLANNER" are used, they must be followed by a ™ because the words are subject
to trademark law. The initials should not include periods.
Question 6
Which of these is an obligation the CFP® certificant has to her current clients?
To maintain competence in all areas of financial planning
To eliminate material conflicts of interest that could affect the professional relationship.
To implement the client's financial planning recommendation(s) unless specifically excluded
from the scope of the engagement.
To have a reasonable basis for the recommendation or engagement of another professional
based on the other professional's reputation, experience, and qualifications.
4
