FINANCIAL PLANNING EXAM 1 STUDY
SET 2025 QUESTIONS AND ANSWERS
Definition of Financial Planning - ANS the collaborative process that helps maximize a client's
potential for meeting life goals through financial advice that integrates relevant elements of the
client's personal and financial circumstances
7 steps of financial planning - ANS 1. understanding the client's personal and financial
circumstances
-obtain and analyze data about client
2. identifying and selecting goals
-working with client to establish and PRIORITIZE financial goals
3. analyzing the client's current course of action and potential alternative courses of action
4.developing the financial planning recommendations
5. presenting the recommendations
6. implementing the recommendations
7. monitoring progress and updating
Life Cycle Approach - ANS gathers information like age, marital status, number of children,
and net worth. identifies different phases of life as the foundation of the approach to the
financial plan.
Life Planning - ANS Determining a client's lifestyle and goals and builds a financial plan
around that. Kinder = father of life planning. considering the client's "attitudes towards money
and life," "emotional, experiential, and spiritual concerns influencing life choices"
1|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
, "what is meaningful to the client?"
3 questions:
1. if you had all the money in the world, how would you live?
2. if you had 5-10 years left to live, what would you do differently in your life
3. if you were to die tomorrow, what would you miss? regret? who did you not get to be?
Fiduciary Standard vs Suitability Standard - ANS Suitability: requires the planner to give
advice that is suitable for the client's needs. Does not require the planner to act in the client's
best interest
Fiduciary standard: requires the planner to act in the client's best interest. That means no
commission.
General history of financial planning - ANS from product sales --> service
college for financial planning becomes a thing shortly after... certifications are given
regulations and standards start to be established (holding CFP® professionals to high standard)
FPA and NAPFA are big now
CFP exam changes to 6 hour, one day exam
Different types of compensation methods - ANS hourly fee
flat fee
commission
2|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
SET 2025 QUESTIONS AND ANSWERS
Definition of Financial Planning - ANS the collaborative process that helps maximize a client's
potential for meeting life goals through financial advice that integrates relevant elements of the
client's personal and financial circumstances
7 steps of financial planning - ANS 1. understanding the client's personal and financial
circumstances
-obtain and analyze data about client
2. identifying and selecting goals
-working with client to establish and PRIORITIZE financial goals
3. analyzing the client's current course of action and potential alternative courses of action
4.developing the financial planning recommendations
5. presenting the recommendations
6. implementing the recommendations
7. monitoring progress and updating
Life Cycle Approach - ANS gathers information like age, marital status, number of children,
and net worth. identifies different phases of life as the foundation of the approach to the
financial plan.
Life Planning - ANS Determining a client's lifestyle and goals and builds a financial plan
around that. Kinder = father of life planning. considering the client's "attitudes towards money
and life," "emotional, experiential, and spiritual concerns influencing life choices"
1|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
, "what is meaningful to the client?"
3 questions:
1. if you had all the money in the world, how would you live?
2. if you had 5-10 years left to live, what would you do differently in your life
3. if you were to die tomorrow, what would you miss? regret? who did you not get to be?
Fiduciary Standard vs Suitability Standard - ANS Suitability: requires the planner to give
advice that is suitable for the client's needs. Does not require the planner to act in the client's
best interest
Fiduciary standard: requires the planner to act in the client's best interest. That means no
commission.
General history of financial planning - ANS from product sales --> service
college for financial planning becomes a thing shortly after... certifications are given
regulations and standards start to be established (holding CFP® professionals to high standard)
FPA and NAPFA are big now
CFP exam changes to 6 hour, one day exam
Different types of compensation methods - ANS hourly fee
flat fee
commission
2|P a g e C o p y r i g h t © 2 0 2 5 T H E B R I G H T A L L R I G H T S R E S E R V E D
