FREE Certified Financial Planner MCQ Questions and Answers
Rebecca the planner is creating a list of paperwork that her client needs to do or bring to the meeting. Assume that the financial planning agreement has been signed and specifies that it will cover retirement planning, investment allocations, and preparing for insurance in the event of death or incapacity. Which of the following Rebecca should not ask the client?
Explanation:
It is improper to inquire about a client's ancestry. In addition, it is unnecessary because, while family history does affect longevity and, as a result, retirement calculations as well as potentially affect underwriting choices for life insurance and disability insurance, three generations are too many and the necessary information can be gleaned from a brief conversation with the client.
You work as a planner with a freshly licensed physician who has completed his residency and is going to accept a position earning him $240,000 as a single person after taxes and retirement contributions. He owns $220,000 in student loans with 20 year durations ($100,000 each at 4% and $120,000 at 6%, a combination of Federal and Perkins loans). He also has a $50,000 auto loan at 4.5% interest for six years, a $5,000 credit card debt at 9.5%, and he thinks he can put 5% down on a $500,000 house within a year thanks to a special program for new doctors. He has accumulated $12,000 in liquid savings during his tenure. Based on this scenario, what would be a reasonable recommendation for this new doctor that would enable him to balance the purchase of a new home and debt repayment?
Explanation:
This is a prudent cash flow choice with very little risk. A new professional must be crucial in assisting the client in managing cashflow.
Paula recently learned that she had successfully passed the CFP exam. She could choose from the following:
Explanation:
Paula must fulfill all four requirements for a CFP Practitioner certification, including the Ethics review in addition to the Educational and Experience requirements.
As his planner, Fang wants to talk with you about growing his company. He currently employs around 20 people, all in one location, and they work with cutting-edge machinery and a lot of commodities in the manufacturing process. He worries about how he will pay for and staff this growth. What information, given the economic cycle, would support this decision?
Explanation:
A rising money supply is an excellent leading indicator, indicating that firms and consumers will be able to spend more money now and in the near future on products and services. As a result, this is encouraging for Fang.
In order to save money for her dream of starting her own business when she is 42 years old, Ellie has a number of possibilities. By then, she needs $45,000. Which choice is ideal for her?
Explanation:
With a monthly investment of $1,250 and an annual return of 2%, you can earn $46,337.63, of which only the increase is subject to taxes.
Which of the following actions by Matthew would be considered a violation of the Integrity element of the CFP Standards of Conduct?
Explanation:
A CFP professional is not allowed to: when providing professional services, either directly or indirectly: i. Use any method, plan, or scheme to defraud.
Helen wants to get involved in her hometown's startup scene. She is divorced, has a net worth of $250,003, an annual salary of $101,000, and is not an accredited investor. Which of the following could Helen perform in accordance with the JOBS Act?
Explanation:
Over $100,000 earners are permitted to use crowd financing websites to donate up to 10% of their revenue to startups.