CFP exam QUESTIONS AND ANSWERS

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Topic 1: Financial Planning Process Correct Answer: ... 6 step process: EGADIM Correct Answer: 1. Establish Relationship 2. Gather Information 3. Analyze data 4. Develop plan 5. Implement 6.... Monitor Step 1: Establish Relationship Correct Answer: • Services that will be provided • compensation/billing • Responsibilities of both client/planner • Time frame of relationship Step 2: Gather quantitative and qualitative data Correct Answer: • It is important that goals be defined before any recommendations • A goal should be specific, prioritized and quantified • Fact finder form Step 3: Analyze data Correct Answer: • Identify strengths and weaknesses • Analysis of current position • Should be based on realistic assumptions Step 4: Develop Plan Correct Answer: • Objective • Should be presented to client • Mutually decide on revisions • Prioritized list of implementation steps and timing Step 5: Implement Correct Answer: • Work closely with other professional team members • Help client with product acquisitions Step 6: Monitor Correct Answer: • Fed tax changes • Economic changes • Modifications to plan Topic 2: Code of Ethics & Professional Responsibility + Disciplinary Rules Procedures Correct Answer: ... Aspirational Principles Correct Answer: • Integrity • Objectivity • Competence • Fairness • Confidentiality • Professionalism [Show More]

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