CHFC® FINAL EXAM QUESTIONS AND CORRECT ANSWERS |2026/2027
UPDATED |GUARANTEED PASS.
A financial plan for a blended family with respect to health insurance should be fairly
straightforward because a stepchild is included in the family health insurance provided to either
spouse under a group health plan. [LO 11.7]
A) True
B) False - Answer -(B) is correct. The Answer is false. Health insurance is always a relatively
complex issue, and a number of considerations will apply to the blended family. First,
stepchildren might not be automatically included in every group plan. Second, the prior divorce
and child support decree might have included a requirement for a former spouse to provide for
the health insurance of his or her child.
If an ex-spouse remarries, the new spouse does not count towards the residency requirement
to qualify for the $500,000 capital-gains exclusion on the sale of the primary residence. [LO
11.5]
A) True
B) False - Answer -(B) is correct. The Answer is false. If a spouse remarries and now is part of a
blended family, then the new spouse can count towards satisfying the marital requirement to
exclude up to $500,000 of capital gain.
Joe is single and has adjusted gross income of $15,000, $2,000 of tax exempt interest, and gets
$10,000 a year in Social Security benefits. What is Joe's provisional income? [LO 16.6]
A)$15,000
B)$17,000
C)$22,000
D)$27,000 - Answer -The Answer is (C). Provisional income is the sum of the taxpayer's adjusted
gross income, tax exempt interest, and half of his or her Social Security benefit. In this case, it is
15,000 plus 2,000 plus ½ of 10,000 (5,000) = $22,000.
1|Page
, The fifth step of the retirement income planning process Answers the most important question
"Is the client prepared for retirement?" This is the needs and savings analysis. [LO 16.7]
A) True
B) False - Answer -(A) is correct. The Answer is true.
Federal income tax planning is an important method to use to address a retirement income
shortfall because successful planning should increase the client's after-tax retirement benefits.
[LO 16.7]
A) True
B) False - Answer -(A) is correct. The Answer is true.
When creating a retirement income plan, the financial services professional should primarily
focus on the client's quantitative data. [LO 16.2]
A) True
B) False - Answer -(B) is correct. The Answer is false. Although quantitative data may be the
primary focus when undertaking retirement planning (in which the foremost objective is to
accumulate wealth), retirement income planning could be viewed as broader because that
wealth is the means to meet retirement goals during a potentially long period of time. Thus
understanding a client's position and goals share equal importance.
All of the following represent various structured systematic withdrawal approaches to
retirement income planning:
A) Bucket approach
B) Maximization of final years
C) Age-banded approach
2|Page
UPDATED |GUARANTEED PASS.
A financial plan for a blended family with respect to health insurance should be fairly
straightforward because a stepchild is included in the family health insurance provided to either
spouse under a group health plan. [LO 11.7]
A) True
B) False - Answer -(B) is correct. The Answer is false. Health insurance is always a relatively
complex issue, and a number of considerations will apply to the blended family. First,
stepchildren might not be automatically included in every group plan. Second, the prior divorce
and child support decree might have included a requirement for a former spouse to provide for
the health insurance of his or her child.
If an ex-spouse remarries, the new spouse does not count towards the residency requirement
to qualify for the $500,000 capital-gains exclusion on the sale of the primary residence. [LO
11.5]
A) True
B) False - Answer -(B) is correct. The Answer is false. If a spouse remarries and now is part of a
blended family, then the new spouse can count towards satisfying the marital requirement to
exclude up to $500,000 of capital gain.
Joe is single and has adjusted gross income of $15,000, $2,000 of tax exempt interest, and gets
$10,000 a year in Social Security benefits. What is Joe's provisional income? [LO 16.6]
A)$15,000
B)$17,000
C)$22,000
D)$27,000 - Answer -The Answer is (C). Provisional income is the sum of the taxpayer's adjusted
gross income, tax exempt interest, and half of his or her Social Security benefit. In this case, it is
15,000 plus 2,000 plus ½ of 10,000 (5,000) = $22,000.
1|Page
, The fifth step of the retirement income planning process Answers the most important question
"Is the client prepared for retirement?" This is the needs and savings analysis. [LO 16.7]
A) True
B) False - Answer -(A) is correct. The Answer is true.
Federal income tax planning is an important method to use to address a retirement income
shortfall because successful planning should increase the client's after-tax retirement benefits.
[LO 16.7]
A) True
B) False - Answer -(A) is correct. The Answer is true.
When creating a retirement income plan, the financial services professional should primarily
focus on the client's quantitative data. [LO 16.2]
A) True
B) False - Answer -(B) is correct. The Answer is false. Although quantitative data may be the
primary focus when undertaking retirement planning (in which the foremost objective is to
accumulate wealth), retirement income planning could be viewed as broader because that
wealth is the means to meet retirement goals during a potentially long period of time. Thus
understanding a client's position and goals share equal importance.
All of the following represent various structured systematic withdrawal approaches to
retirement income planning:
A) Bucket approach
B) Maximization of final years
C) Age-banded approach
2|Page
