FPQP CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS
GRADED A+
◍ 7 Steps of the Personal Financial Planning Process.
Answer: 1. Understanding the client's personal and financial circumstances2.
Identifying and selecting goals3. Analyzing the client's current course of
action and potential alternate course of action4. Developing the financial
planning recommendations5. Presenting the financial planning
recommendations6. Implementing the financial planning
recommendations7. Monitoring progress and updating
◍ Which of the following areas does a lender consider when evaluating a
borrower?.
Answer: CapacityCharacterCollateralConditions
◍ comprehensive financial plan.
Answer: addresses most/all aspects of client's circumstances
◍ targeted financial plan.
Answer: address 1 or 2 of a client's objective (ex: buying a home)
◍ PTA.
Answer: PurposeTime frameamountsteps to setting a financial goal
◍ You plan to contribute $3,000 per year at the end of each year to a
tax-deferred retirement plan.You plan to retire in 35 years.You want to have
an account worth $1 million at retirement.What annual rate of return will
you need to earn to achieve your goal?.
Answer: 10.89%Set calculator for 1 P/YR, end mode3000 +/− PMT, 35 N,
1000000 FV, solve for I/YR = 10.89%.
,◍ The marital deduction used when settling the estates of married decedents
provides that.
Answer: an unlimited amount of property may be transferred between
spouses to avoid tax on the estate of the first spouse to die.
◍ Areas of Financial Planning.
Answer: Developing goals Cash and debt management Risk management
and insurance planningEducation needs Group benefits planningInvestment
planningRetirement savings and income planningTax planningEstate
planning
◍ Which of the following personal risks are considered potential catastrophic
expenses?.
Answer: Medical expensesLong-term careNatural disastersLawsuits
◍ Which of the following characteristics apply to a traditional whole life
policy?.
Answer: It is considered permanent coverage.It has higher initial premiums
than term life.It offers the potential to build cash value.It offers level
premiums throughout the life of the insured.
◍ Which one of the following is NOT a factor that premiums can be based
upon under the Affordable Care Act?.
Answer: Gender
◍ Step 1: Understanding the client's personal and financial circumstances.
Answer: Acquire qualitative and quantitative dataMay use a standardized
questionnaire or data survey formIncludes identifying current yield from
already-invested assets (quantitative data)
◍ Which one of the following are factor that premiums can be based upon
under the Affordable Care Act?.
Answer: Smoking statusAgeFamily sizeGeography
◍ Quantitative data.
Answer: Names and numbersgeneral family profile, assets and liabilities,
cash inflows and outflows, insurance policy info, employee benefit and
, retirement plan info, tax returns for the past 3 years, details of current
investments, education funding needs, client-owned business info, copies of
important docs, lifetime gifting programs
◍ Which of the following statements regarding probate are CORRECT?.
Answer: Testate estates are subject to probate.Intestate estates are subject to
probate.Probate requires the appointment of a personal representative.
◍ Which one of the following bonds is selling at a premium?.
Answer: 11% Valez Corp., BBB rated, current price of $1,001A premium
bond is a bond selling for more than par (also called maturity value) which
is $1,000. The only bond listed selling for more than $1,000 is the Valez
Corp. bond at $1,001.
◍ Qualitative data.
Answer: Lifestyle infostatement of goals, health status, interest and hobbies,
employment expectations, risk-tolerance level, current and projected
economic conditions, anticipated changes in lifestyle, financial
decision-making style, info regarding professional advisers (legal, tax,
investment), estate planning issues, retirement planning issues, money
values, family relationships
◍ A $1,000 par value, 15-year bond pays interest of $40 semiannually and is
trading at $970. What is its yield to maturity?.
Answer: Set calculator for 2 P/YR, end mode, C ALL. 970 +/- PV, 40 PMT,
1,000 FV, 15, DOWNSHIFT, N (30 compounding periods) then solve for
I/YR = 8.35%.
◍ Step 2: Identifying and selecting goals.
Answer: Needs vs wantstransform reasons into well-defined goalsConsider
issues not previously considered by the client When clients' circumstances
change, the planner should return to this step, gathering additional data to
later make recommendations to meet the client's new requirements.
◍ Which of the following is a type of exposure that would be covered by a
personal umbrella liability policy?.
QUESTIONS WITH SOLUTIONS
GRADED A+
◍ 7 Steps of the Personal Financial Planning Process.
Answer: 1. Understanding the client's personal and financial circumstances2.
Identifying and selecting goals3. Analyzing the client's current course of
action and potential alternate course of action4. Developing the financial
planning recommendations5. Presenting the financial planning
recommendations6. Implementing the financial planning
recommendations7. Monitoring progress and updating
◍ Which of the following areas does a lender consider when evaluating a
borrower?.
Answer: CapacityCharacterCollateralConditions
◍ comprehensive financial plan.
Answer: addresses most/all aspects of client's circumstances
◍ targeted financial plan.
Answer: address 1 or 2 of a client's objective (ex: buying a home)
◍ PTA.
Answer: PurposeTime frameamountsteps to setting a financial goal
◍ You plan to contribute $3,000 per year at the end of each year to a
tax-deferred retirement plan.You plan to retire in 35 years.You want to have
an account worth $1 million at retirement.What annual rate of return will
you need to earn to achieve your goal?.
Answer: 10.89%Set calculator for 1 P/YR, end mode3000 +/− PMT, 35 N,
1000000 FV, solve for I/YR = 10.89%.
,◍ The marital deduction used when settling the estates of married decedents
provides that.
Answer: an unlimited amount of property may be transferred between
spouses to avoid tax on the estate of the first spouse to die.
◍ Areas of Financial Planning.
Answer: Developing goals Cash and debt management Risk management
and insurance planningEducation needs Group benefits planningInvestment
planningRetirement savings and income planningTax planningEstate
planning
◍ Which of the following personal risks are considered potential catastrophic
expenses?.
Answer: Medical expensesLong-term careNatural disastersLawsuits
◍ Which of the following characteristics apply to a traditional whole life
policy?.
Answer: It is considered permanent coverage.It has higher initial premiums
than term life.It offers the potential to build cash value.It offers level
premiums throughout the life of the insured.
◍ Which one of the following is NOT a factor that premiums can be based
upon under the Affordable Care Act?.
Answer: Gender
◍ Step 1: Understanding the client's personal and financial circumstances.
Answer: Acquire qualitative and quantitative dataMay use a standardized
questionnaire or data survey formIncludes identifying current yield from
already-invested assets (quantitative data)
◍ Which one of the following are factor that premiums can be based upon
under the Affordable Care Act?.
Answer: Smoking statusAgeFamily sizeGeography
◍ Quantitative data.
Answer: Names and numbersgeneral family profile, assets and liabilities,
cash inflows and outflows, insurance policy info, employee benefit and
, retirement plan info, tax returns for the past 3 years, details of current
investments, education funding needs, client-owned business info, copies of
important docs, lifetime gifting programs
◍ Which of the following statements regarding probate are CORRECT?.
Answer: Testate estates are subject to probate.Intestate estates are subject to
probate.Probate requires the appointment of a personal representative.
◍ Which one of the following bonds is selling at a premium?.
Answer: 11% Valez Corp., BBB rated, current price of $1,001A premium
bond is a bond selling for more than par (also called maturity value) which
is $1,000. The only bond listed selling for more than $1,000 is the Valez
Corp. bond at $1,001.
◍ Qualitative data.
Answer: Lifestyle infostatement of goals, health status, interest and hobbies,
employment expectations, risk-tolerance level, current and projected
economic conditions, anticipated changes in lifestyle, financial
decision-making style, info regarding professional advisers (legal, tax,
investment), estate planning issues, retirement planning issues, money
values, family relationships
◍ A $1,000 par value, 15-year bond pays interest of $40 semiannually and is
trading at $970. What is its yield to maturity?.
Answer: Set calculator for 2 P/YR, end mode, C ALL. 970 +/- PV, 40 PMT,
1,000 FV, 15, DOWNSHIFT, N (30 compounding periods) then solve for
I/YR = 8.35%.
◍ Step 2: Identifying and selecting goals.
Answer: Needs vs wantstransform reasons into well-defined goalsConsider
issues not previously considered by the client When clients' circumstances
change, the planner should return to this step, gathering additional data to
later make recommendations to meet the client's new requirements.
◍ Which of the following is a type of exposure that would be covered by a
personal umbrella liability policy?.
