FF99 Foundations of Financial Planning Exam Questions and Answers Latest Update 2025/2026
Insurability Risk - Answers Risks to a client's retirement income plan include all of the following EXCEPT
A $1,000 tax credit for a taxpayer in a 39 percent marginal tax bracket will reduce her tax payable by
$390. - Answers All of the following statements concerning tax deductions and tax credits are correct
EXCEPT
Loss of income-earning ability because of unemployment - Answers Which of the following is an
example of a personal risk?
Frailty period - Answers All of the following are phases of the financial life cycle EXCEPT
income and property taxes - Answers Expenses that tend to increase for new retirees include all of the
following EXCEPT
Part D plans may be part of a Medicare advantage plan or a stand-alone plan. - Answers Which of the
following statements regarding Medicare Part D is correct?
The definition of disability under Social Security is very strict, which makes it difficult to get approved for
benefits. - Answers Which of the following statements concerning Social Security disability benefits is
correct?
tax evasion planning - Answers A comprehensive financial plan should include all of the following
planning areas EXCEPT
The investor buys more shares when prices are low. - Answers Which of the following statements
regarding dollar-cost averaging is (are) correct?
The same tax brackets are applied to the income determined under the AMT rules. - Answers All of the
following statements regarding the alternative minimum tax (AMT) are correct EXCEPT
Clients can have confidence that insurance obtained through an employee benefit plan will be in place
when needed. - Answers Coordinating the client's existing insurance to account for employee benefits is
important for all of the following reasons EXCEPT
HMO (health maintenance organization) - Answers Which of the following plans is the most restrictive
managed medical expense insurance plan?
Under-reporting income from cash payments - Answers Income tax planning techniques include all of
the following EXCEPT
They are insurance companies that have not gained approval to place insurance in the jurisdiction where
the insurance company or a producer wants to sell insurance. - Answers Which of the following
statements regarding unauthorized entities is correct?
, Group health plan coverage - Answers Which of the following benefits would be considered a qualified
benefit under Code Sec. 125 (cafeteria plan)?
how other clients have responded to the recommendations. - Answers For each goal in a comprehensive
plan, the financial professional should present information in each of these areas EXCEPT
fruit and tree doctrine - Answers Sandra receives interest semiannually from a $1,000 bond she owns
and gives it to her son, Brett. Which of the following tax doctrines explains why Sandra is required to pay
income tax on the interest income even though Brett actually receives it?
Property owned as a tenancy in common - Answers Which of the following forms of jointly owned
property becomes part of the probate estate at an owner's death?
a large inheritance - Answers All of the following are considered roadblocks to retirement saving EXCEPT
Gambling winnings - Answers Which of the following is considered to be gross income for federal
income tax purposes?
convertible bonds - Answers All of the following are types of government debt securities EXCEPT
Property transfers that place restrictions on a surviving spouse's use or enjoyment of the property can
never qualify for the marital deduction. - Answers All of the following statements regarding estate
planning techniques used to preserve a client's wealth are correct EXCEPT
helps the client secure the financial products associated with the recommendations with which the
client agrees to move forward. - Answers Step 7 (Implement the Plan) of the marketing/planning process
is when the financial professional
Why - Answers The framework of a client's estate plan should answer all of the following questions
EXCEPT
A three-day stay in the hospital - Answers Which of the following medical expenses would likely be
payable under Medicare Part A?
The NAIC initially adopted 10 standard Medigap plans that required specified basic benefits. - Answers
Which of the following statements regarding coverage to supplement Medicare is (are) correct?
lower levels of protection needs - Answers Dual income families typically have all of the following
EXCEPT
In a dealer market, ultimately, the investor bears the risk of a dealer holding an inventory of the
security. - Answers All of the following statements regarding negotiated and dealer markets are correct
EXCEPT
It is created under the will of a testator. - Answers Which of the following statements regarding a
testamentary trust is (are) correct?
Insurability Risk - Answers Risks to a client's retirement income plan include all of the following EXCEPT
A $1,000 tax credit for a taxpayer in a 39 percent marginal tax bracket will reduce her tax payable by
$390. - Answers All of the following statements concerning tax deductions and tax credits are correct
EXCEPT
Loss of income-earning ability because of unemployment - Answers Which of the following is an
example of a personal risk?
Frailty period - Answers All of the following are phases of the financial life cycle EXCEPT
income and property taxes - Answers Expenses that tend to increase for new retirees include all of the
following EXCEPT
Part D plans may be part of a Medicare advantage plan or a stand-alone plan. - Answers Which of the
following statements regarding Medicare Part D is correct?
The definition of disability under Social Security is very strict, which makes it difficult to get approved for
benefits. - Answers Which of the following statements concerning Social Security disability benefits is
correct?
tax evasion planning - Answers A comprehensive financial plan should include all of the following
planning areas EXCEPT
The investor buys more shares when prices are low. - Answers Which of the following statements
regarding dollar-cost averaging is (are) correct?
The same tax brackets are applied to the income determined under the AMT rules. - Answers All of the
following statements regarding the alternative minimum tax (AMT) are correct EXCEPT
Clients can have confidence that insurance obtained through an employee benefit plan will be in place
when needed. - Answers Coordinating the client's existing insurance to account for employee benefits is
important for all of the following reasons EXCEPT
HMO (health maintenance organization) - Answers Which of the following plans is the most restrictive
managed medical expense insurance plan?
Under-reporting income from cash payments - Answers Income tax planning techniques include all of
the following EXCEPT
They are insurance companies that have not gained approval to place insurance in the jurisdiction where
the insurance company or a producer wants to sell insurance. - Answers Which of the following
statements regarding unauthorized entities is correct?
, Group health plan coverage - Answers Which of the following benefits would be considered a qualified
benefit under Code Sec. 125 (cafeteria plan)?
how other clients have responded to the recommendations. - Answers For each goal in a comprehensive
plan, the financial professional should present information in each of these areas EXCEPT
fruit and tree doctrine - Answers Sandra receives interest semiannually from a $1,000 bond she owns
and gives it to her son, Brett. Which of the following tax doctrines explains why Sandra is required to pay
income tax on the interest income even though Brett actually receives it?
Property owned as a tenancy in common - Answers Which of the following forms of jointly owned
property becomes part of the probate estate at an owner's death?
a large inheritance - Answers All of the following are considered roadblocks to retirement saving EXCEPT
Gambling winnings - Answers Which of the following is considered to be gross income for federal
income tax purposes?
convertible bonds - Answers All of the following are types of government debt securities EXCEPT
Property transfers that place restrictions on a surviving spouse's use or enjoyment of the property can
never qualify for the marital deduction. - Answers All of the following statements regarding estate
planning techniques used to preserve a client's wealth are correct EXCEPT
helps the client secure the financial products associated with the recommendations with which the
client agrees to move forward. - Answers Step 7 (Implement the Plan) of the marketing/planning process
is when the financial professional
Why - Answers The framework of a client's estate plan should answer all of the following questions
EXCEPT
A three-day stay in the hospital - Answers Which of the following medical expenses would likely be
payable under Medicare Part A?
The NAIC initially adopted 10 standard Medigap plans that required specified basic benefits. - Answers
Which of the following statements regarding coverage to supplement Medicare is (are) correct?
lower levels of protection needs - Answers Dual income families typically have all of the following
EXCEPT
In a dealer market, ultimately, the investor bears the risk of a dealer holding an inventory of the
security. - Answers All of the following statements regarding negotiated and dealer markets are correct
EXCEPT
It is created under the will of a testator. - Answers Which of the following statements regarding a
testamentary trust is (are) correct?
