CSI Applied Financial Planning Certification Exam 1 (AFP) - AFP-Exam-1 Exam Practice Test

A planner establishes a long-term target portfolio of 65% equities and 35% fixed income based on the client's objectives and constraints, with periodic rebalancing. Which allocation approach is being used?

A couple has stable employment, two dependants, and essential monthly expenses of $5,200. They have no emergency reserve. Which recommendation is most appropriate before increasing long-term investment contributions?

Suzy, age 45, is meeting with a financial planner as she has recently inherited $1.25 million from her late aunt. Suzy has poor spending habits and would like to review options that would safeguard and help her receive stable cash flows. She does not have a lot of experience investing and would like to avoid making day- to-day investment decisions. Which type of investment account is most appropriate for Suzy?

What financial information would Deandra a financial planner, analyze in order to increase her client's net worth by decreasing expenses?

Demario, age 29, has started his own professional practice. He is single, has a mortgage, and his future earning power is his largest asset. Which insurance should receive priority?

Barbara, age 50, is meeting with her financial planner, Clark. Barbara has been hired as the Chief Executive Officer of a very successful privately owned business. Her salary will be $200,000 annually, plus a bonus.
Which retirement savings option should Clark recommend for Barbara?

Owen and Lina are looking to purchase a home in the next few months. Owen is the primary income earner for the family. His credit history is weak with several recently paid collections Lina has a perfect credit record but limited income and irregular employment. What will their financial planner advise them about the impact their credit ratings will have on their ability to secure a mortgage?

In which life cycle stage would a financial planner identify his client to be if they have a high mortgage balance and an unstable or lower income, and are willing to take on investment risk because of their longer time horizon?