CERTIFIED FINANCIAL PLANNER EXAM
MODULE 1 QUESTIONS WITH CORRECT
ANSWERS
What are key issues when planning is due to a divorce? - Answer-1. income
2. property distribution
3. child custody
4. other issues relating to insurance planning, budgeting, other transition plans,
prenuptial agreements.
3 key issues when planning for a permanently disabled child or adult? - Answer-1.
financial support
2. living arrangement
3. physical support
Recommended allocation of income to savings and investment - Answer-5%-10% of
Gross Income
Steps of the Financial Planning Process - Answer-1. Establishing & defining the client-
planner relationship
2. Gathering client data including goals
3. Analyzing & evaluating the client's financial status
4. Developing & Presenting financial planning recommendations and/or alternatives
5. Implementing the financial planning recommendations
6. Monitoring the financial planning recommendations
Specific information gathered in General Information Section of Data survey form -
Answer-1. Name, Address, Telephone number
2. Date prepared
3. Dates of birth for all family members
4. Social Security Numbers
5. Health Problems
6. Special needs of client or dependent
Specific information gathered in the Assets section of the Data survey form - Answer-1.
Title
2. Date property was acquired
3. Cost or basis
4. Current fair market value
5. Encumbrances (debt)
6. Current Yield
, Six Steps of financial planning - Answer-1. Establishing and defining the client-planner
relationship
2, Gathering client data including goals
3. Analyzing and evaluating the client financial status
4.Developing and presenting financial planning recommendations and alternatives
5. Implementing the financial planning recommendations
6.Monitoring the financial planning recommendations
Under what circumstance would saving and investments appear as an inflow on the
cash flow statement - Answer-Whenever funds are withdrawn from savings or when
assets are liquidated
The rule of thumb suggests in regard to saving and investing income is - Answer-5-10%
of gross income
What symptoms frequently are present if clients are not living within their means -
Answer-heavy consumer debt and/or borrowing to make ends meet
Withdrawals from savings to meet regular living expenses
High miscellaneous expenditures
inability to save
What are some uses for budgeting - Answer-to control and monitor household expenses
to accomplish wealth accumulation and savings goals
to monitor investment performance
What are the guidelines for implementing a budget - Answer--Make the budget flexible
-Keep the budget period short enough to minimize guesswork
-Longer enough to set proper investment or planning course
-Keep it simple
-keep form an content consistent from year to year
-Eliminate extraneous information
-Do not attempt absolute accuracy
- Tailor the budget
-Make the budget a guideline against which results are measure
- Consider variable in advance
MODULE 1 QUESTIONS WITH CORRECT
ANSWERS
What are key issues when planning is due to a divorce? - Answer-1. income
2. property distribution
3. child custody
4. other issues relating to insurance planning, budgeting, other transition plans,
prenuptial agreements.
3 key issues when planning for a permanently disabled child or adult? - Answer-1.
financial support
2. living arrangement
3. physical support
Recommended allocation of income to savings and investment - Answer-5%-10% of
Gross Income
Steps of the Financial Planning Process - Answer-1. Establishing & defining the client-
planner relationship
2. Gathering client data including goals
3. Analyzing & evaluating the client's financial status
4. Developing & Presenting financial planning recommendations and/or alternatives
5. Implementing the financial planning recommendations
6. Monitoring the financial planning recommendations
Specific information gathered in General Information Section of Data survey form -
Answer-1. Name, Address, Telephone number
2. Date prepared
3. Dates of birth for all family members
4. Social Security Numbers
5. Health Problems
6. Special needs of client or dependent
Specific information gathered in the Assets section of the Data survey form - Answer-1.
Title
2. Date property was acquired
3. Cost or basis
4. Current fair market value
5. Encumbrances (debt)
6. Current Yield
, Six Steps of financial planning - Answer-1. Establishing and defining the client-planner
relationship
2, Gathering client data including goals
3. Analyzing and evaluating the client financial status
4.Developing and presenting financial planning recommendations and alternatives
5. Implementing the financial planning recommendations
6.Monitoring the financial planning recommendations
Under what circumstance would saving and investments appear as an inflow on the
cash flow statement - Answer-Whenever funds are withdrawn from savings or when
assets are liquidated
The rule of thumb suggests in regard to saving and investing income is - Answer-5-10%
of gross income
What symptoms frequently are present if clients are not living within their means -
Answer-heavy consumer debt and/or borrowing to make ends meet
Withdrawals from savings to meet regular living expenses
High miscellaneous expenditures
inability to save
What are some uses for budgeting - Answer-to control and monitor household expenses
to accomplish wealth accumulation and savings goals
to monitor investment performance
What are the guidelines for implementing a budget - Answer--Make the budget flexible
-Keep the budget period short enough to minimize guesswork
-Longer enough to set proper investment or planning course
-Keep it simple
-keep form an content consistent from year to year
-Eliminate extraneous information
-Do not attempt absolute accuracy
- Tailor the budget
-Make the budget a guideline against which results are measure
- Consider variable in advance
