CFP Practice Questions with Correct Answers 2025

CFP exam Containing Questions And Answers 2025




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

, CFP exam Containing Questions And Answers 2025


• 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



Confidential Information can be disclosed only when... -Answer • The client consents

• Court ordered

• CFP must defend accusations

• Civil suit between client and CFP



CFP Board of Professional Review -Answer • Inquiry Panel - grounds for discipline