CFP EXAM QUESTIONS AND
ANSWERS WITH COMPLETE
SOLUTIONS 100% CORRECT RATED
A+ ||UPDATED 2026
Question 1
What is the standard six-step methodology utilized in the professional financial
planning process?
ANSWER: The EGADIM framework: 1. Establish the relationship, 2. Gather
information, 3. Analyze data, 4. Develop the plan, 5. Implement recommendations,
6. Monitor the plan ✔✔
Question 2
What core elements must be clearly defined and agreed upon during the first step of
the financial planning process?
ANSWER: The specific services to be provided, the compensation and billing
structure, the individual responsibilities of both the client and the planner, and the
expected timeframe of the professional relationship ✔✔
Question 3
What are the primary considerations and tools used when gathering quantitative and
qualitative data during the second step of the planning process?
ANSWER: Establishing and defining clear client goals before making any
recommendations, ensuring each goal is specific, prioritized, and quantified, and
utilizing a comprehensive fact-finder form ✔✔
Step 3: Analyze data -ANSWER ✔✔• Identify strengths and weaknesses
• Analysis of current position
• Should be based on realistic assumptions
, Step 4: Develop Plan -ANSWER ✔✔• Objective
• Should be presented to client
• Mutually decide on revisions
• Prioritized list of implementation steps and timing
Step 5: Implement -ANSWER ✔✔• Work closely with other professional team
members
• Help client with product acquisitions
Step 6: Monitor -ANSWER ✔✔• Fed tax changes
• Economic changes
• Modifications to plan
Topic 2: Code of Ethics & Professional Responsibility + Disciplinary Rules
Procedures -ANSWER ✔✔...
Aspirational Principles -ANSWER ✔✔• Integrity
• Objectivity
• Competence
• Fairness
• Confidentiality
• Professionalism
• Diligence
ANSWERS WITH COMPLETE
SOLUTIONS 100% CORRECT RATED
A+ ||UPDATED 2026
Question 1
What is the standard six-step methodology utilized in the professional financial
planning process?
ANSWER: The EGADIM framework: 1. Establish the relationship, 2. Gather
information, 3. Analyze data, 4. Develop the plan, 5. Implement recommendations,
6. Monitor the plan ✔✔
Question 2
What core elements must be clearly defined and agreed upon during the first step of
the financial planning process?
ANSWER: The specific services to be provided, the compensation and billing
structure, the individual responsibilities of both the client and the planner, and the
expected timeframe of the professional relationship ✔✔
Question 3
What are the primary considerations and tools used when gathering quantitative and
qualitative data during the second step of the planning process?
ANSWER: Establishing and defining clear client goals before making any
recommendations, ensuring each goal is specific, prioritized, and quantified, and
utilizing a comprehensive fact-finder form ✔✔
Step 3: Analyze data -ANSWER ✔✔• Identify strengths and weaknesses
• Analysis of current position
• Should be based on realistic assumptions
, Step 4: Develop Plan -ANSWER ✔✔• Objective
• Should be presented to client
• Mutually decide on revisions
• Prioritized list of implementation steps and timing
Step 5: Implement -ANSWER ✔✔• Work closely with other professional team
members
• Help client with product acquisitions
Step 6: Monitor -ANSWER ✔✔• Fed tax changes
• Economic changes
• Modifications to plan
Topic 2: Code of Ethics & Professional Responsibility + Disciplinary Rules
Procedures -ANSWER ✔✔...
Aspirational Principles -ANSWER ✔✔• Integrity
• Objectivity
• Competence
• Fairness
• Confidentiality
• Professionalism
• Diligence
