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

AFP-Exam-1 real exams

Exam Code: AFP-Exam-1

Exam Name: Applied Financial Planning Certification Exam 1 (AFP)

Updated: Aug 02, 2026

Q & A: 120 Questions and Answers

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CSI AFP-Exam-1 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Estate Planning13%- Trust and Beneficiary Planning
- Estate Transfer Strategies
- Powers of Attorney
- Wills
Topic 2: Risk Management and Insurance12%- Risk Transfer Strategies
- Risk Assessment
- Life Insurance
- Disability and Health Insurance
Topic 3: Tax Planning14%- Tax-Efficient Strategies
- Tax Deductions and Credits
- Income Tax Fundamentals
- Registered Plans
Topic 4: Professional Conduct and Regulatory Compliance10%- Ethics and Professional Standards
- Compliance Responsibilities
- Regulatory Requirements
Topic 5: Client Relationship and Practice Management6%- Client Discovery
- Practice Management
- Communication and Advisory Process
Topic 6: Investment Planning17%- Asset Allocation
- Investment Products
- Investment Theory
- Portfolio Construction
Topic 7: Asset and Liability Management11%- Debt Management
- Cash Flow Management
- Personal Balance Sheet Analysis
- Budgeting
Topic 8: Retirement Planning17%- Registered Retirement Savings Plans
- Retirement Income Strategies
- Pension Plans
- Retirement Needs Analysis

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

1. 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) $24,418.
B) $21,591.
C) $20,000.
D) $21,000.


2. A client's portfolio target is 50% equities and 50% fixed income. After a strong equity market, the portfolio is now 68% equities. The client's circumstances and objectives have not changed. What should the planner recommend?

A) Increase equities because recent performance confirms the trend.
B) Rebalance toward the target allocation.
C) Move all investments to cash.
D) Stop reviewing the portfolio until retirement.


3. Camila's firm recently issued their client, Shawn, an investment management fee summary on his non- registered investment portfolio for $5,000 in carrying charges. Shawn's federal tax rate is 29% and his provincial tax rate is 15%. What will be Shawn's tax savings on this investment management fee?

A) $750.
B) $1,450.
C) $2,200.
D) $0.


4. A client asks when his RRSP must generally be converted to a retirement income vehicle. What should the planner explain?

A) On the day he turns 65.
B) Only when he stops working.
C) Only after all RRSP assets are withdrawn in cash.
D) By the end of the year he turns 71.


5. Richard pays periodic spousal support and child support under a written separation agreement. Which statement is generally correct?

A) Spousal support is never relevant for tax planning.
B) Qualifying periodic spousal support may be deductible to Richard and taxable to the recipient, while child support is generally neither deductible nor taxable.
C) Both spousal and child support are always deductible to Richard.
D) Child support is taxable to the recipient if paid monthly.


Solutions:

Question # 1
Answer: B
Question # 2
Answer: B
Question # 3
Answer: C
Question # 4
Answer: D
Question # 5
Answer: B

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