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: Aug 06, 2026
  • Q & A: 120 Questions and Answers

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CSI AFP-Exam-1 Exam Syllabus Topics:

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

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

1. Sapphire, age 35, a recent widow, is still in the grieving stage. She has just received a large insurance payout.
She has limited savings, a long-term time horizon, and a high tolerance for risk. What investment strategy should her financial planner recommend until Sapphire is better able to understand her new situation?

A) Deposit the funds into a moderate risk investment portfolio.
B) Deposit the funds into a high interest savings account.
C) Deposit the funds into a portfolio of traditional and index-linked guaranteed investment certificates.
D) Deposit the funds into a high-risk investment portfolio.


2. A client completed a financial plan two years ago. Since then, she has divorced, changed jobs, and purchased a new home. What is the planner's most appropriate recommendation?

A) Conduct a comprehensive review of goals, cash flow, insurance, tax, retirement, and estate planning.
B) Wait until the original five-year review date.
C) Review only the investment portfolio because the plan already exists.
D) Update the file only if the client requests new products.


3. If a deceased person was entitled to rights or things at death, what strategy should the estate representative use to enhance the net estate value after tax?

A) Transfer ownership of the rights or things to the beneficiaries of the estate.
B) Include the rights or things in the deceased's final personal tax return.
C) Include the rights or things in a second personal tax return for the deceased.
D) File for annual tax reassessments on the terminal tax return until all rights or things are paid.


4. Henry, age 48, has been working for Bac Inc, which is a federally regulated corporation, for over eight years.
He is looking to retire at age 50 and has decided to take the commuted value of his pension: $450,000, electing to transfer the eligible remainder to his RRSP (Income Tax Act maximum pension benefit transfer value of $210,000). Henry estimates he would need $1,800 (pre-tax every month) from his registered investments to meet his retirement income goal and is looking to maximize his RRSP contribution room.
Assume no inflation, an average tax rate of 15%, an unused RRSP contribution room of $90,000, and a life expectancy to age 90. What would be the required rate of return to meet Henry's goals?

A) 6,71%.
B) 10,09%.
C) 14,35%.
D) 3,71%.


5. Gina plans to take a one-year leave of absence from her employer without pay. Gina has a TFSA invested in equity mutual funds which is currently below book value, an RRSP invested in cash, a Nova Scotia LIRA invested in GICs, and a line of credit. Assuming all have sufficient funds, which plan should Gina access to ensure she meets her goal of budget effectiveness during this time?

A) The LIRA.
B) The line of credit.
C) The TFSA.
D) The RRSP.


Solutions:

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

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