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

  • Exam Code: AFP-Exam-1
  • Exam Name: Applied Financial Planning Certification Exam 1 (AFP)
  • Updated: Aug 16, 2026
  • Q & A: 120 Questions and Answers

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CSI AFP-Exam-1 Exam Syllabus Topics:

SectionObjectives
Topic 1: Taxation Concepts- Tax-efficient investment strategies
- Personal income tax principles
Topic 2: Investment Planning- Asset allocation and portfolio basics
- Investment products and risk-return profiles
Topic 3: Insurance and Risk Management- Risk mitigation strategies in financial planning
- Life and health insurance fundamentals
Topic 4: Retirement Planning- Retirement savings vehicles and planning principles
Topic 5: Financial Planning Foundations- Ethics and professional standards in financial advising
- Financial planning process and client relationship management

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

1. Daniel, age 55, plans to continue working for AMG Telecommunications Corporation until he retires at age
60. The company has a defined contribution plan and Daniel is looking for the best option that will allow him to receive the highest guaranteed income throughout his retirement. He is not concerned about leaving an estate and feels that interest rates will be at high levels as he nears retirement. What planning strategy should Daniel's financial planner recommend he implement to achieve this objective?

A) Transfer proceeds to a locked-in RRSP and purchase a laddered GIC.
B) Transfer proceeds to a LIRA and purchase a target date fund.
C) Use the proceeds to purchase a principal-protected note.
D) Use the proceeds to purchase a life annuity.


2. Leena and Harry are married and hold RRSPs with a value exceeding $500,000. They are concerned about their final tax liability and want to cover the taxes after they have both died. What would their financial planner recommend them to implement in order for the couple to achieve the objective?

A) Update the beneficiary of the RRSP plans to each other.
B) Purchase a joint last-to-die permanent life insurance policy.
C) Transfer the funds into an inter vivos trust.
D) Set up a testamentary trust through their wills.


3. A client believes that security prices quickly reflect public information and wants broad Canadian equity exposure with low cost and minimal manager discretion. What investment best matches this view?

A) Sector-specific hedge fund.
B) One-year cashable GIC.
C) Canadian index exchange-traded fund.
D) Portfolio of five selected mining stocks.


4. A client, age 60, is in a low tax bracket today and expects a larger taxable pension after age 65. She has TFSA and RRSP room. Which contribution priority is generally more appropriate?

A) RRSP only after the client turns 72.
B) Non-registered account only, because registered accounts are unsuitable after age 60.
C) RRSP, because withdrawals are tax-free.
D) TFSA, because withdrawals will not increase taxable retirement income.


5. A client wants to increase net worth by identifying spending reductions and increasing monthly surplus.
Which document is most useful for this purpose?

A) Net worth statement only.
B) Current cash flow statement and budget.
C) Investment policy statement only.
D) Beneficiary designation form.


Solutions:

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

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