Jumpstart University: Tackling CFP Exam Questions

Introduction

• Presenter: Dominique
• Audience: Career changers or aspiring financial professionals
• Purpose: Guide on tackling CFP exam questions
• Community: Visit jumpstartcoachinglab.com for more resources

CFP Exam Overview

• Major Topic Areas:
  1. Financial Planning Process
  2. Risk Management and Insurance
  3. Employee Benefits
  4. Investments
  5. Tax Planning and Management
  6. Retirement Planning
• Exam Structure:
  • Approximately 170 multiple-choice questions
  • Types of questions:
    • Standalone questions
    • Short scenarios
    • Case studies
• Resource: More information available at cfp.net

Exam Preparation Strategy

• Acronym - READ:
  • R: Recall the information being asked
  • E: Evaluate the data given (avoid extra assumptions)
  • A: Apply concepts to the question at hand (use formula sheets)
  • D: Decide on the best answer

Sample Questions Breakdown

Scenario Analysis

• Scenario: Harold and Mary Ann Miller, married with three children
  • Ages: 7, 10, 12
  • Harold’s Income: $350,000/year as general counsel
  • Assets: $1.5M cash, $1M in stock options
  • No estate planning, life insurance equals twice Harold's salary
  • College planning is a concern
  • Expenses: $12,000/month after taxes
  • Tax Bracket: 35% federal, 6% state

Question 1: College Funding

• Key Points:
  • Concerns over children's maturity by age 21
  • Options: UTMA, Coverdell ESA, 529 plans
  • Best Choice: 529 plans
    • Broad coverage for education expenses beyond tuition

Question 2: Plan Implementation

• Key Task: Establish a will with guardianship
• Reasoning:
  • Address lack of estate planning
  • Prioritize children's educational needs

Final Thoughts

• Acronym Review: Remember to READ the question thoroughly
• Advisory: Follow your review program diligently
  • Review programs are crucial for passing the exam

Upcoming Event

• Jumpstart Community Day of Gratitude
  • Date: November 5th
  • Description: Workshop with Gary Clement, CFP expert
  • Registration: Required but free
  • Details: Visit jumpstartcoachinglab.com/newsletter to register

Conclusion

• Call to Action:
  • Like and share the video with peers
  • Engage with the community for further support and resources