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CSI AFP-Exam-1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Risk Management and Insurance | 12% | - Risk Transfer Strategies - Life Insurance - Disability and Health Insurance - Risk Assessment |
| Topic 2: Investment Planning | 17% | - Investment Products - Portfolio Construction - Investment Theory - Asset Allocation |
| Topic 3: Estate Planning | 13% | - Estate Transfer Strategies - Trust and Beneficiary Planning - Wills - Powers of Attorney |
| Topic 4: Tax Planning | 14% | - Income Tax Fundamentals - Tax Deductions and Credits - Registered Plans - Tax-Efficient Strategies |
| Topic 5: Asset and Liability Management | 11% | - Personal Balance Sheet Analysis - Budgeting - Cash Flow Management - Debt Management |
| Topic 6: Professional Conduct and Regulatory Compliance | 10% | - Regulatory Requirements - Compliance Responsibilities - Ethics and Professional Standards |
| Topic 7: Client Relationship and Practice Management | 6% | - Practice Management - Communication and Advisory Process - Client Discovery |
| Topic 8: Retirement Planning | 17% | - Retirement Needs Analysis - Pension Plans - Retirement Income Strategies - Registered Retirement Savings Plans |
CSI Applied Financial Planning Certification Exam 1 (AFP) Sample Questions:
1. Keitaro, age 42, and Ruth, age 52, are married and have two children - Maximo, age 20, and Hannah, age 16, both from Keitaro's previous marriage. In the event Keitaro dies, he would like to minimize taxes, provide for Ruth for the remainder of her life, and then after her death leave the residual to his children. What estate planning strategy should his financial planner recommend to help Keitaro achieve his goal?
A) Transfer his assets to a testamentary spousal trust through a will and name his children as capital beneficiaries.
B) Transfer his assets to a testamentary spousal trust through a will and name his children as income and capital beneficiaries.
C) Transfer his assets to an inter vivos spousal trust through a will and name his children as income and capital beneficiaries.
D) Transfer his assets to an inter vivos spousal trust through a will and name his children as capital beneficiaries.
2. A married couple has a $480,000 mortgage with 15 years remaining. They want the mortgage retired if either spouse dies during that period. What insurance structure best fits this objective?
A) Joint 15-year term first-to-die policy.
B) Joint 15-year term last-to-die policy.
C) Joint permanent last-to-die policy.
D) Individual annuities for both spouses.
3. Lois is reviewing her client Raj's retirement plan. To stay on track, Raj's TFSA (with a current balance of
$10,000) will need to be worth $42,000 in five years. Raj is able to contribute his annual bonus of $5,000 at the end of each year. For Raj to stay on plan, what rate of return does Lois need to be targeting?
A) 5.64%.
B) 5.71%.
C) 7.67%.
D) 6.36%.
4. Miles tells Rasheed, his financial planner, that he would like to assign the growth assets in his portfolio to his children. Rasheed recommends Miles freeze his estate. What is the primary risk associated with an estate freeze?
A) Once the estate freeze is in place, no future growth of the assets can occur.
B) Once the children hold the common shares, they can vote to withhold payment of the preferred dividend.
C) The preferred shares taken back by the taxpayer may provide inadequate Income because of inflation.
D) It is easy to unwind an estate freeze, but the amount of income paid to the taxpayer will be inconsistent from year to year.
5. Todd, a financial planner, is meeting with Vanessa, a new client, to review her investment goals and objectives. During the meeting, Vanessa states that she believes the markets are very efficient and should reflect all available information in the price of securities. She is looking for an investment option that will reflect a similar level of risk and return characteristics as the Canadian market. What investment option should Todd recommend with Vanessa that would reflect her opinions?
A) Canadian hedge fund.
B) Canadian exchange-traded fund.
C) Canadian neutral balanced fund.
D) Canadian value mutual fund.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: B |






