CSI AFP-Exam-1 Exam : Applied Financial Planning Certification Exam 1 (AFP)

  • Exam Code: AFP-Exam-1
  • Exam Name: Applied Financial Planning Certification Exam 1 (AFP)
  • Updated: Oct 19, 2026
  • Q & A: 120 Questions and Answers

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CSI AFP-Exam-1 Exam Syllabus Topics:

SectionWeightObjectives
Asset and Liability Management11%- Budgeting
- Personal Balance Sheet Analysis
- Cash Flow Management
- Debt Management
Tax Planning14%- Income Tax Fundamentals
- Registered Plans
- Tax-Efficient Strategies
- Tax Deductions and Credits
Risk Management and Insurance12%- Risk Transfer Strategies
- Risk Assessment
- Life Insurance
- Disability and Health Insurance
Client Relationship and Practice Management6%- Practice Management
- Communication and Advisory Process
- Client Discovery
Professional Conduct and Regulatory Compliance10%- Compliance Responsibilities
- Ethics and Professional Standards
- Regulatory Requirements
Estate Planning13%- Wills
- Trust and Beneficiary Planning
- Powers of Attorney
- Estate Transfer Strategies
Retirement Planning17%- Pension Plans
- Registered Retirement Savings Plans
- Retirement Income Strategies
- Retirement Needs Analysis
Investment Planning17%- Investment Theory
- Asset Allocation
- Portfolio Construction
- Investment Products

CSI Applied Financial Planning Certification Exam 1 (AFP) Sample Questions:

Question #1

A client refuses to provide details about debt balances, tax returns, and monthly expenses but asks the planner to confirm whether retirement at age 55 is achievable. What should the planner do?

  • A. Use generic assumptions and present the plan as reliable.
  • B. Estimate the figures secretly from the client's age and income.
  • C. Explain that the conclusion will be limited or unreliable without the missing information.
  • D. Proceed only with investment recommendations.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #2

Carla, a financial planner, is meeting with a long-standing client, Jonathan. Jonathan informs Carla that he is upset and disappointed with the negative returns experienced with his investment portfolio. After acknowledging Jonathan's concerns, what should Carla's first step be in addressing his complaint?

  • A. Remind Jonathan about the risks associated with investing, as well as the possible volatility and impact on investment returns.
  • B. Remind Jonathan that investing is a long-term process and losses will likely be recovered.
  • C. Offer alternative investment options in line with Jonathan's risk tolerance.
  • D. Revisit Jonathan's goals, objectives and risk tolerance with him.
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Correct Answer: D  🗳️

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Question #3

Daniel, age 55, plans to continue working for AMG Telecommunications Corporation until he retires at age
60. The company has a defined contribution plan and Daniel is looking for the best option that will allow him to receive the highest guaranteed income throughout his retirement. He is not concerned about leaving an estate and feels that interest rates will be at high levels as he nears retirement. What planning strategy should Daniel's financial planner recommend he implement to achieve this objective?

  • A. Transfer proceeds to a locked-in RRSP and purchase a laddered GIC.
  • B. Transfer proceeds to a LIRA and purchase a target date fund.
  • C. Use the proceeds to purchase a principal-protected note.
  • D. Use the proceeds to purchase a life annuity.
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Correct Answer: D  🗳️

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Question #4

Janet's non-registered account holds the funds listed in the following table:

Assuming a marginal tax rate of 45%, what amount of tax payable will Janet incur if she redeems the account to fund the purchase of a new business?

  • A. $5,625.
  • B. $9,000.
  • C. $6,750.
  • D. $4,500.
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Correct Answer: D  🗳️

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Question #5

Leena and Harry are married and hold RRSPs with a value exceeding $500,000. They are concerned about their final tax liability and want to cover the taxes after they have both died. What would their financial planner recommend them to implement in order for the couple to achieve the objective?

  • A. Update the beneficiary of the RRSP plans to each other.
  • B. Purchase a joint last-to-die permanent life insurance policy.
  • C. Transfer the funds into an inter vivos trust.
  • D. Set up a testamentary trust through their wills.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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