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CSI AFP-Exam-1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Risk Management and Insurance | 12% | - Risk Transfer Strategies - Disability and Health Insurance - Life Insurance - Risk Assessment |
| Topic 2: Client Relationship and Practice Management | 6% | - Practice Management - Communication and Advisory Process - Client Discovery |
| Topic 3: Retirement Planning | 17% | - Retirement Needs Analysis - Retirement Income Strategies - Pension Plans - Registered Retirement Savings Plans |
| Topic 4: Tax Planning | 14% | - Tax-Efficient Strategies - Income Tax Fundamentals - Registered Plans - Tax Deductions and Credits |
| Topic 5: Estate Planning | 13% | - Estate Transfer Strategies - Wills - Trust and Beneficiary Planning - Powers of Attorney |
| Topic 6: Investment Planning | 17% | - Asset Allocation - Investment Products - Portfolio Construction - Investment Theory |
| Topic 7: Asset and Liability Management | 11% | - Debt Management - Cash Flow Management - Budgeting - Personal Balance Sheet Analysis |
| Topic 8: Professional Conduct and Regulatory Compliance | 10% | - Regulatory Requirements - Ethics and Professional Standards - Compliance Responsibilities |
CSI Applied Financial Planning Certification Exam 1 (AFP) Sample Questions:
1. Demario, age 28, has just started his own law firm. He met with his financial planner, Ivy, and she told him that he needs insurance, but Ivy did not specify which type. Demario is single and owns his own home. At this point in his career, his greatest asset is his human capital. Which type of insurance should Ivy have specified to purchase in order for Demario to best protect this asset?
A) Disability.
B) Extended health care.
C) Critical Illness.
D) Term Life.
2. Alexis has an index-linked GIC with an adjusted cost base of $20,500. The GIC was issued one year ago, has four years remaining to maturity and provides her with 60% participation in the gains of the S & P/TSX 60 Index, based on the level of the Index at maturity or at redemption prior to maturity. The GIC has a 2% fee if redeemed in the first two years. Alexis notices that the S & P/TSX 60 Index is up 25% and she would like to redeem her GIC. She asked her financial planner if she redeems her GIC, how much she would receive upon redemption. What will her financial planner tell her?
A) She will receive $25,625.
B) She will receive $23,104.
C) She will receive $23,575.
D) She will receive $20,500.
3. James is visiting Gurjeet, his financial planner, to discuss his financial affairs after the recent passing of his long-time partner Peter. James is concerned that the cost of probate will be a heavy burden. Which holdings should Gurjeet advise James are included in calculating the cost of probate?
A) Insurance contracts with a preferred beneficiary designated.
B) Registered plans with an adult child designated as the beneficiary.
C) Assets held in a formal, irrevocable trust account.
D) Assets held joint tenants in common.
4. Ram Patel, age 65, is meeting with his financial planner, Maria Romano, to complete a financial plan. Ram is retiring this year, and his company provides a defined benefit pension plan. Upon retirement, he has the choice of receiving $20,000 each year for 20 years or until death (whichever is earlier), or he can take
$304,300, which is the commuted value at retirement. Ram has confirmed that he will be transferring the commuted value to a LIRA. After further discovery, Maria suggests that they utilize a 5% market rate of return and project the funds to last 25 years. What should Maria update Ram's projected annual retirement income to?
A) $21,591.
B) $21,000.
C) $20,000.
D) $24,418.
5. Edward's client is updating his will and is concerned what will happen to his and his wife's estates should they die within a short time of each other. Which clause in the will should Edward recommend the couple discuss with their lawyer?
A) Conversion.
B) Life interest.
C) Survivorship.
D) Successor.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: C |








