CFP Total Test Exam Questions with 100% Correct Answers

Harry and Alice, both age 55, plan to retire at age 60. They have three children: Pete, age 32, a computer technician living in Atlanta; Sidney, age 30, a doctor who resides in Indianapolis; and Mark, age 25, a web designer, who is married and lives in Chicago. They also have three grandchildren. Most likely, in what phase in the financial life cycle are Harry and Alice? A) Gifting phase B) Asset accumulation phase C) Conservation phase D) Distribution phase - ANSWER-C The answer is conservation phase. Harry and Alice are in the conservation phase of the financial life cycle because they are between the ages of 45 and 60, their children are independent, and they are approaching retirement. A CFP® professional who has monitoring and updating responsibilities must communicate to a client which of the following factors? Which actions, products, and services are and are not subject to the CFP® professional's monitoring responsibility How and when the CFP® professional will monitor the actions, products, and services How frequently the CFP® professional will update and change the client's financial goals each year How and when the CFP® professional will update the financial planning recommendations A) I, II, and IV B) I and III C) I and II D) II and IV - ANSWER-A The answer is I, II, and IV. A CFP® professional must analyze, at appropriate intervals, the progress toward achieving the client's goals and discuss the results with the client. Goals, recommendations, or selections of actions, products, or services must be updated when the circumstances warrant such an update. Statement III is incorrect because the CFP® professional does not unilaterally update the client's goals. The CFP® professional would update the client's goals, if necessary, by re-engaging the financial planning process.