RFC Cheat Sheet 2026

The 30 highest-yield RFC facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A client's operating cash flow is $80,000 but net income is $110,000. Which scenario BEST explains this gap? → Significant increase in accounts receivable
2. When a conflict arises between standard procedures and a unique situation in Tax Planning & Optimization, what should a RFC professional prioritize? → Safety and ethical obligations while seeking expert consultation
3. Medicare Part B covers which of the following services? → Outpatient physician visits and preventive services
4. A married couple wants to maximize lifetime Social Security benefits. The higher earner should generally delay benefits to age 70 primarily to: → Maximize the survivor benefit for the lower-earning spouse
5. Under the wash sale rule, which of the following transactions would disallow a capital loss deduction? → Selling stock at a loss and buying a call option on the same stock 20 days later
6. Which Social Security benefit is NOT reduced if claimed before the worker's full retirement age? → Disabled widow's benefit claimed at age 50
7. A client has $15,000 in credit card debt at 22% APR and $20,000 in a car loan at 5%. Using the avalanche method, which debt should be prioritized? → Credit card, because it has the higher interest rate
8. Under RFC debt management principles, which action BEST improves a client's credit utilization ratio? → Paying down revolving balances below 30% of limits
9. What is the PRIMARY purpose of continuing education requirements in Cash Flow & Debt Management for RFC professionals? → Maintaining current knowledge and competency as the field evolves
10. Which primary advantage does a cross-purchase buy-sell agreement provide to surviving owners compared to an entity purchase (stock redemption) agreement? → Surviving owners receive a stepped-up cost basis in the purchased interest
11. What is the maximum Social Security benefit for a worker who retires at full retirement age in 2024? → $3,822
12. A client age 62 asks about the 'glide path' concept. What does this refer to in target-date fund investing? → The shift from aggressive to conservative allocation as the target date nears
13. A client's debt-to-income ratio is 42%. From an RFC perspective, this MOST likely indicates: → The client may face difficulty qualifying for additional credit and should reduce debt
14. Which of the following statements about umbrella liability insurance is correct? → It provides excess liability coverage above the limits of underlying policies
15. Which statement about the 'debt snowball' method is MOST accurate for an RFC advising clients? → It provides psychological motivation by eliminating smaller debts first
16. In Insurance Planning & Risk Management, what is the FIRST step a RFC professional should take when encountering a new case or situation? → Conduct a comprehensive assessment and gather all relevant information
17. What is the primary goal of asset allocation? → Balance risk and return
18. Which type of debt is MOST likely to be dischargeable in a Chapter 7 personal bankruptcy? → Unsecured credit card debt
19. A life insurance policy's 'spendthrift clause' is designed primarily to protect the policy's proceeds from: → The beneficiary's creditors before the proceeds are distributed
20. What is the primary purpose of using Monte Carlo simulation in retirement income planning? → To model the probability of portfolio success across thousands of random market scenarios
21. What is the PRIMARY purpose of continuing education requirements in Education Funding Planning for RFC professionals? → Maintaining current knowledge and competency as the field evolves
22. Income-Related Monthly Adjustment Amounts (IRMAA) for Medicare Parts B and D are based on modified adjusted gross income from how many years prior? → 2 years prior
23. Which standard of practice is MOST important for ensuring quality in Tax Planning & Optimization? → Following evidence-based protocols while adapting to specific circumstances
24. Under ERISA, which of the following is a fiduciary obligation of a qualified plan administrator? → Acting solely in the interest of plan participants and beneficiaries
25. In Retirement Planning & Strategies, what is the FIRST step a RFC professional should take when encountering a new case or situation? → Conduct a comprehensive assessment and gather all relevant information
26. Which of the following is an example of risk retention? → Establishing a self-insured retention fund
27. What is the PRIMARY purpose of continuing education requirements in Investment Analysis & Selection for RFC professionals? → Maintaining current knowledge and competency as the field evolves
28. Which of the following is NOT a component typically found in a personal cash flow statement? → Net worth
29. A business owner wants to protect against the financial loss resulting from the death of a key employee. Which risk management strategy is most appropriate? → Key person life insurance
30. A client earns $6,500/month gross and has total monthly debt payments of $2,080. What is their debt-to-income (DTI) ratio? → 32%