Certified Financial Planner Examination

1.Mara's college fund will be spent in six years. Her planner must choose between a low-cost fund that fits that date and a high-commission annuity with a surrender charge that pays the planner more. What does the duty of loyalty require?

2.Owen has never described his job, debts, or dependents, but he wants a retirement product selected today. What does the duty of care require first?

3.Priya's investment policy says she wants a conservative mix and no individual stocks. Her planner believes a concentrated stock position would grow faster. What should the planner do?

4.Luis and his planner already selected a goal: pay off his car loan before raising investments. They have not compared his current payment with other payoff schedules. Which planning step comes next?

5.Helen can fund only one goal this year: an emergency reserve, a kitchen repair, or a vacation. She has not priced them yet. She decides the reserve comes first. Which step is that decision?

6.Noah's cash-flow analysis is finished. His planner is writing the specific actions Noah should take and has not yet met with him to explain them. Which step is that writing?

7.Amina has accepted the written plan. She asks the planner to open the recommended account and schedule the first transfer. Which step is that request?

8.Two years after Jamal's plan was put in place, he changed jobs and had a child. What should happen in the planning process now?

9.The fund a planner favors for Bennett pays the planner's firm a revenue-sharing fee. The fee does not change Bennett's stated expense ratio, but it rewards the firm for using that fund. What should the planner do with this conflict?

10.A court order directs Carla's planner to produce her account statements. Carla asks the planner to refuse every request from anyone. What is the proper response?

11.Derek, age 80, tells his planner that a nephew is forging checks on Derek's account. The applicable state law requires the planner to report suspected elder financial abuse. What should the planner do?

12.Elise asks her planner to leave cash consulting fees out of the figures she will give her tax preparer. She wants the fees described as gifts from friends. What should the planner do?

13.Frank asks his planner, who is not a lawyer, to backdate a gift letter so a lender will believe the money was given last year. What should the planner do?

14.Gina wants a written promise that her stock fund will earn 9 percent every year of her plan. How should her planner respond?

15.Hugo sets aside $10,000 in an account that earns 5 percent a year, compounded annually. He will add and withdraw nothing. What is the balance after two years if that rate occurs?

16.Iris places $2,000 in an equipment fund that earns 10 percent a year, compounded annually, with no further deposits. What is the fund worth after three years if that rate occurs?

17.Jon sets aside $15,000 for a cabin deposit he may make in two years. The account earns 6 percent a year, compounded annually. What is the expected balance then?

18.Keisha wants a rough sense of how long her house fund takes to double if it earns 8 percent a year. Using the rule of 72, about how many years is that?

19.Leo's savings vehicle is assumed to earn 6 percent a year. A friend says the balance will double in about 6 years. Using the rule of 72, what should the planner say?

20.Mina is considering a mutual fund with assets of $2,400,000, liabilities of $150,000, and 90,000 shares outstanding. What is the net asset value per share?

21.Ned divides his fund's $1,250,000 of assets by 40,000 shares and ignores $50,000 of liabilities. What is the correct net asset value per share?

22.Olga deposits $1,000 at the end of this year and $1,000 at the end of next year into an account earning 10 percent a year. What is the balance just after the second deposit?

23.Paul needs $12,100 in two years for a dental bill his insurance will not cover. He can earn 10 percent a year, compounded annually. How much must he set aside today?

24.Quincy's college bill would be $20,000 if it were due today. He expects the bill to rise 5 percent a year. What amount should he plan for in two years?

25.Rosa's target mix is 60 percent stocks with an expected return of 8 percent and 40 percent bonds with an expected return of 3 percent. What is the weighted expected return?

26.Samir holds a taxable corporate bond yielding 5 percent. His marginal rate on that interest is 24 percent. What is his after-tax yield on the bond?

27.Tina is in a 24 percent bracket on ordinary interest and is offered a municipal bond yielding 3.8 percent. What taxable yield matches that municipal yield for federal income tax?

28.Uma's bond fund has a modified duration of 8. She asks for the approximate price change if yields rise by one percentage point. What should the planner say?

29.Victor's essential monthly spending is $4,200. He wants six months of those expenses in cash. How large is that reserve?

30.Wendy lists assets of $420,000 and liabilities of $165,000. She asks what her net worth is on that balance sheet. What is the figure?

31.In a typical month Xavier receives $7,800, pays $3,200 of fixed bills, and spends $2,150 on variable costs. He has not yet set money aside. What is the monthly surplus before saving?

32.Yara earns $100,000 a year and directs $15,000 into savings and retirement accounts. What is her savings rate on those earnings?

33.Andre's gross monthly pay is $8,000, and his housing payment is $2,000. What share of gross pay goes to housing?

34.Bea's household essentials cost $60,000 this year. She wants next year's plan to assume 3 percent inflation for one year. What spending level should she use?

35.Cal has a cash reserve in place, a credit card at 19 percent, and a student loan at 4 percent. He has an extra $300 this month. Which use of that $300 usually helps more?

36.Dina wants her three-month emergency reserve invested entirely in one technology stock so the money works harder. What is the planning problem?

37.Evan's monthly surplus is $500. He has no cash reserve, and he also wants to start a long-term stock fund. Where should the surplus go first?

38.Farah's capital-needs list is $15,000 for final expenses, $210,000 to clear a mortgage, $80,000 for college, and $400,000 as an income fund. She already has $250,000 of life insurance and $55,000 of assets set aside for these items. How much additional insurance does the list indicate?

39.Greg does not want a house fire to wipe out his savings, so he buys a homeowners policy. Which risk response is that purchase?

40.Hana decides not to buy a motorcycle after reviewing the injury risk and her other goals. Which risk response is that decision?

41.Ivan already owns a motorcycle. He keeps it, takes a rider course, and buys protective gear. Which risk response is that?

42.Jill carries a $1,000 deductible on her auto policy and can pay that amount from cash. Which response applies to the deductible part of a covered claim?

43.Ken wants life coverage for the 18 years until his children are grown, and he does not want cash value. Which description fits what he is seeking?

44.Lila wants coverage that can stay in force for life and a savings component she can borrow against later. Which product matches that description?

45.Marco is a surgeon. His disability policy pays if he cannot perform surgery, even if he could still teach. Which definition is that?

46.Nora's disability policy pays only if she cannot work in any occupation suited to her training and experience. Why is that stricter than own-occupation coverage?

47.A storm destroys Pavel's five-year-old roof. His homeowners policy pays for a similar new roof and does not subtract wear. Which valuation is that?

48.Petra's sofa is insured for actual cash value. After a fire, the insurer starts from the cost of a similar new sofa and then subtracts wear. What is that subtraction?

49.Quinn names his sister as beneficiary of a policy on his life. He dies this year. How is the death benefit generally treated on his sister's income-tax return?

50.Rita owns a policy on her own life and keeps the right to change the beneficiary. She asks whether the death benefit is automatically free of estate tax. What is accurate?

51.Seth has homeowners and auto liability limits, and he worries about a lawsuit larger than those limits. Which policy is designed to sit above them?

52.Thea is 55 and healthy. She wants coverage for help with bathing and dressing later in life, not a replacement for her paycheck. Which coverage matches that goal?

53.Uri's health plan requires him to pay the first $1,500 of covered care each year before the plan shares costs. What is that $1,500?

54.Vera's house is in a flood zone. Her standard homeowners policy does not cover flood, so she buys a separate flood policy. What is the main planning point?

55.Wes owns one biotechnology stock and then adds shares of many unrelated companies. What does that broader mix do to his risk?

56.Bond prices in Ximena's ladder fell in a month when yields jumped. She asks why the prices moved that way. What is the relationship?

57.Yao owns two bonds of similar credit quality. One has a long duration and one has a short duration. If rates rise, which price is more sensitive?

58.Zoe buys common shares of a public company and asks what she actually acquired. Which description fits common stock?

59.Aaron owns preferred shares with a stated dividend. The company declares dividends this quarter. How does that preferred stock generally stand relative to the common stock?

60.Blair spends most of her time choosing individual stocks. Her mix is 90 percent stocks and 10 percent bonds. What mainly drives the long-term risk-and-return difference between her portfolio and a more balanced one?

61.Cam's two funds earned the same average return. Fund A swung widely from year to year, and Fund B stayed close to its average. Which fund has the higher standard deviation?

62.Dana adds an asset whose returns have often moved differently from the rest of her portfolio. Why can that help?

63.Eli's target is 60 percent stocks. After a rally, stocks are 75 percent of the portfolio. He wants to follow the target. What is rebalancing here?

64.Faith must pay a $20,000 tax bill within three months. Which holding best matches that timing?

65.Gabe is comparing two funds that track the same large-company market. One charges 0.05 percent a year and the other charges 0.80 percent. What is the planning point?

66.Hank owns a share trading at $40 that paid a $2 annual dividend. He asks what yield that dividend represents at the current price. What is it?

67.Ida owns 100 shares at $80, so the position is worth $8,000. The company declares a 2-for-1 split, and the market has not otherwise moved. What is the result?

68.Julio's stock has a beta of 1.4. He asks what that number describes. What should the planner say?

69.Rates fall, and the issuer calls Kira's callable corporate bond. She must reinvest the proceeds at the new lower yields. Which risk showed up?

70.Miles has finished a written recommendation for Lena: build cash reserves before adding to stocks. He meets with her to explain the reasons and the alternatives. She has not agreed to act. Which planning step is the meeting?

71.Maya receives interest on a municipal bond. She asks how that interest is generally treated on her federal income-tax return. What is the general rule?

72.Nick's investment income is mostly municipal-bond interest, and he also receives Social Security. He believes the bond interest cannot affect his federal return at all. What should the planner say?

73.A bonus pushed the last slice of Opal's taxable income into a higher bracket. She thinks every dollar she earned is now taxed at that top rate. What is accurate?

74.Pete sold shares he had held for three years in a taxable account, and he realized a gain. How is that gain generally treated compared with his wages?

75.Renee sells a fund at a loss in a taxable account on Monday and buys the same fund back on Tuesday. Why may that loss be disallowed?

76.Sam inherits shares from his father. His father's basis was $20 a share, and the fair market value on the date of death was $70. What basis does Sam generally take?

77.Tara is eligible to deduct a contribution to a traditional IRA, and she makes one. How does that contribution affect this year's taxes?

78.Ulrich opened a Roth IRA more than five years ago. He is 61 and takes a distribution of earnings. No other special limit applies. How is that distribution of earnings treated?

79.Vicky contributed $4,000 of after-tax money to a Roth IRA. She is 32 and withdraws $4,000 of those contributions. She withdraws no earnings. What is the tax result?

80.Walter, age 40, takes $10,000 from a traditional IRA. The entire amount is pre-tax, and no penalty exception applies. How is the distribution treated?

81.In 2026 Yolanda turned 72. She has a traditional IRA and asks whether that birthday requires a minimum distribution this year. What is the current age rule?

82.Zack holds a taxable brokerage account and a traditional 401(k). He owns a taxable corporate bond and a stock index fund he expects to hold. Where does asset location usually place the corporate bond?

83.Ada is self-employed and owed a large balance last April because she paid nothing during the year. Which planning step addresses that cash-flow surprise?

84.Bryce is 74. He writes a personal check to charity and also takes a taxable required distribution from his traditional IRA. He asks whether a transfer sent from the IRA directly to the charity would differ. What is the distinction?

85.Clara was born in 1964 and asks for her Social Security full retirement age. What is it?

86.Dave was born in 1961, so his full retirement age is 67. He wants Social Security benefits to start at 62. What is the effect of starting then?

87.Eva was born in 1962 and has reached full retirement age. She may wait to claim Social Security. Until what age do delayed retirement credits apply?

88.Grant's employer plan promises a monthly benefit from a formula that uses his salary and years of service. The employer bears the investment risk of funding that formula. What type of plan is it?

89.Greta's employer puts a set percentage of her pay into an account in her name. The balance depends on those deposits and on investment results. What type of plan is it?

90.Harvey defers part of his pay into a traditional 401(k), and his employer matches part of that deferral into the same traditional account. How is that employer match treated for income tax?

91.Inga, age 40, inherited her uncle's traditional IRA in 2026. He died at 78. She is not his spouse, she is not disabled or chronically ill, and she is not a minor child. Which distribution rule generally applies?

92.Jorge dies and leaves his traditional IRA to his wife, Paula. A relative says Paula must use exactly the same payout rule as their adult nephew. What should the planner say?

93.Rick, age 45, withdraws $20,000 from a traditional IRA. The whole amount is pre-tax, and no penalty exception applies. How much is the 10 percent additional penalty?

94.Sara's employer matches the first 4 percent of pay she defers into the traditional 401(k). She is about to skip that deferral and invest only in a taxable account. What does skipping the deferral mean?

95.Tom retires this year and will withdraw living expenses from his portfolio. He keeps two years of withdrawals in cash and short-term bonds. What is the main reason for that bucket?

96.Una is 64 and in good health. Her parents lived into their nineties. She wants the retirement plan to assume her savings need to last only until age 70, so the target stays small. What should the planner point out?

97.Vince's retirement plan counts on wages until age 67, but a disability could stop his pay at 55. He has little disability insurance. What gap is that?

98.Willa is in a temporarily low tax year and has a large traditional IRA she will not spend soon. She is considering converting a portion to a Roth IRA. What is the central tax tradeoff?

99.Alicia, a U.S. citizen, leaves her estate to her husband, who is also a U.S. citizen. Which transfer-tax rule generally applies to that bequest?

100.Bennett funds a revocable living trust with his brokerage account and keeps the power to revoke it. He thinks the trust both skips probate and removes the account from his taxable estate. What is accurate?

101.Cara names her brother as the payable-on-death beneficiary of her bank account. Her will leaves the rest of her property to her daughter. Who takes that bank account at Cara's death?

102.Drew gives his sister a durable power of attorney over his finances. He asks whether she can use that document to distribute his probate estate after he dies. What is the answer?

103.Elena asks her planner, who is not a lawyer, to draft her will and to state that the document is legally sufficient. What should the planner do?

104.Felix will not sell a stock that is down sharply. He says locking in the loss would hurt more than a similar gain would please him, and he admits he would not buy the same stock today. Which bias is that?

105.Gia believes her single stock is safe. She reads only comments that agree and skips every report that questions the company. Which bias is that?

106.The first retirement projection Hal saw assumed a 10 percent return. He rejects every updated plan that uses 6 percent because he stays fixed on that first figure. Which bias is that?

107.Imani day-trades and says her skill means she will beat the market every quarter. She keeps no record of the losing trades. Which bias is that?

108.Jules buys a popular technology stock only because coworkers and a television segment are buying it. He has not read the risks or checked whether it fits his written plan. Which bias is that?