CFP Test Questions with Correct Answers Latest Version 2025-2026
Financial planning - Answers the process of determining whether and how an individual can meet life
goals through the proper management of financial resources
Financial planning letter of engagement - Answers 1.) the parties to the Agreement;
2.) the date of the Agreement and its duration;
3.) how and on what terms each party can terminate the Agreement; and
4.) the services to be provided as part of the Agreement.
Domain 1 - Answers Establishing and defining the client-planner relationship
Domain 2 - Answers Gathering information necessary to fulfill the engagement
Domain 3 - Answers Analyzing and evaluating the client's current financial status
Domain 4 - Answers Developing the recommendations
Domain 5 - Answers Communicating the recommendations
Domain 6 - Answers Implementing the recommendations
Domain 7 - Answers Monitoring the recommendations
Domain 8 - Answers Practicing within professional and regulatory standards
List all Domains in order - Answers Domain 1 - Establishing and defining the client-planner relationship
Domain 2 - Gathering information necessary to fulfill the engagement
Domain 3 - Analyzing and evaluating the client's current financial status
Domain 4 - Developing the recommendations
Domain 5 - Communicating the recommendations Domain 6 - Implementing the recommendations
Domain 7 - Monitoring the recommendations
Domain 8 - Practicing within professional and regulatory standards
Step 1 (Domain 1) - Answers Identify client, Discuss financial planning process, explain the scope of
services, assess/communicate ability to meet the client's needs, identify/disclose conflicts of interest,
discuss the responsibilities of the client, define/document the scope of engagement WITH client,
provide client disclosures
Step 2 (Domain 2) - Answers 1. Info about financial resources/obligations,
,2. determine personal/financial goals/prioritize (make questions open-ended),
3. determine client's values, attitudes,
4. expectations, experience regarding financial matters,
5. determine client's life cycle phase (memorize),
6. Determine Risk Tolerance/exposure
Life Style Phase - Answers 1. Asset Accumulation (20/25-45)
2. Conservation/Protection (45-60)
3. Distribution/Gifting (60--)
Step 3 (Domain 3) - Answers 1. General financial status (Assets, Liabilities, CF, Budget, Debt)
2. Risk Management/Insurance Evaluation
3. Government/Employee benefit
4. Investment evaluation
5. Tax Evaluation
6. Retirement Evaluation
7. Estate Planning Evaluation
8. Business Ownership
9. Education planning
10. Special Needs (divorce, charitable planning, dependent adult needs, etc.)
Step 4 (Domain 4 & 5) - Answers 1. Create client specific recommendations
2. Collaborate with client to ensure plan meets goals/objectives
3. Communicate recommendations to the client
4. Revise plan once feedback is received.
Step 5 (Domain 6) - Answers 1. Create a prioritized implementation plan
2. Assign responsibilities among the planner/client/advisors
3. Support client with implementation of plan
, 4. Coordinate/share info with others
5. Determine monitoring responsibilities with client
Step 6 (Domain 7) - Answers 1. Discuss/evaluate changes in client's circumstances (did they have a baby)
2. Review performance
3. Review changes in the legal/tax/economic environment
4. Make new recommendations
5. Review the scope of work
6. Provide ongoing support to client
Assets/Liabilities should be presented in - Answers FMV
Personal balance sheet - Answers Provides snapshot of net worth (as of December 31, 20XX)
Net Worth Formula - Answers Assets - Liabilities = Net worth
Assets Listed
Liabilities Listed - Answers Most Liquid
Maturity Date
Personal Stmt of CF - Answers Period Covered (Jan 1 - Dec 31, for the year ending 20XX)
Net CF (Saving Level) Formula - Answers Inflows - Outflows = Net CF
Inflows - Answers Gross Salaries
Interest/Dividend Income
Gross Rental Income
Tax Refunds Due
Realized Capital gains
Alimony/Child support received
Trust Income
Inheritances
Gifts
Financial planning - Answers the process of determining whether and how an individual can meet life
goals through the proper management of financial resources
Financial planning letter of engagement - Answers 1.) the parties to the Agreement;
2.) the date of the Agreement and its duration;
3.) how and on what terms each party can terminate the Agreement; and
4.) the services to be provided as part of the Agreement.
Domain 1 - Answers Establishing and defining the client-planner relationship
Domain 2 - Answers Gathering information necessary to fulfill the engagement
Domain 3 - Answers Analyzing and evaluating the client's current financial status
Domain 4 - Answers Developing the recommendations
Domain 5 - Answers Communicating the recommendations
Domain 6 - Answers Implementing the recommendations
Domain 7 - Answers Monitoring the recommendations
Domain 8 - Answers Practicing within professional and regulatory standards
List all Domains in order - Answers Domain 1 - Establishing and defining the client-planner relationship
Domain 2 - Gathering information necessary to fulfill the engagement
Domain 3 - Analyzing and evaluating the client's current financial status
Domain 4 - Developing the recommendations
Domain 5 - Communicating the recommendations Domain 6 - Implementing the recommendations
Domain 7 - Monitoring the recommendations
Domain 8 - Practicing within professional and regulatory standards
Step 1 (Domain 1) - Answers Identify client, Discuss financial planning process, explain the scope of
services, assess/communicate ability to meet the client's needs, identify/disclose conflicts of interest,
discuss the responsibilities of the client, define/document the scope of engagement WITH client,
provide client disclosures
Step 2 (Domain 2) - Answers 1. Info about financial resources/obligations,
,2. determine personal/financial goals/prioritize (make questions open-ended),
3. determine client's values, attitudes,
4. expectations, experience regarding financial matters,
5. determine client's life cycle phase (memorize),
6. Determine Risk Tolerance/exposure
Life Style Phase - Answers 1. Asset Accumulation (20/25-45)
2. Conservation/Protection (45-60)
3. Distribution/Gifting (60--)
Step 3 (Domain 3) - Answers 1. General financial status (Assets, Liabilities, CF, Budget, Debt)
2. Risk Management/Insurance Evaluation
3. Government/Employee benefit
4. Investment evaluation
5. Tax Evaluation
6. Retirement Evaluation
7. Estate Planning Evaluation
8. Business Ownership
9. Education planning
10. Special Needs (divorce, charitable planning, dependent adult needs, etc.)
Step 4 (Domain 4 & 5) - Answers 1. Create client specific recommendations
2. Collaborate with client to ensure plan meets goals/objectives
3. Communicate recommendations to the client
4. Revise plan once feedback is received.
Step 5 (Domain 6) - Answers 1. Create a prioritized implementation plan
2. Assign responsibilities among the planner/client/advisors
3. Support client with implementation of plan
, 4. Coordinate/share info with others
5. Determine monitoring responsibilities with client
Step 6 (Domain 7) - Answers 1. Discuss/evaluate changes in client's circumstances (did they have a baby)
2. Review performance
3. Review changes in the legal/tax/economic environment
4. Make new recommendations
5. Review the scope of work
6. Provide ongoing support to client
Assets/Liabilities should be presented in - Answers FMV
Personal balance sheet - Answers Provides snapshot of net worth (as of December 31, 20XX)
Net Worth Formula - Answers Assets - Liabilities = Net worth
Assets Listed
Liabilities Listed - Answers Most Liquid
Maturity Date
Personal Stmt of CF - Answers Period Covered (Jan 1 - Dec 31, for the year ending 20XX)
Net CF (Saving Level) Formula - Answers Inflows - Outflows = Net CF
Inflows - Answers Gross Salaries
Interest/Dividend Income
Gross Rental Income
Tax Refunds Due
Realized Capital gains
Alimony/Child support received
Trust Income
Inheritances
Gifts
