Free CSI AFP-Exam-1 Exam Dumps Questions & Answers

In order to increase the assets in Rebecca's retirement savings, her financial planner is considering making a number of recommendations. Prior to obtaining her current employment, she withdrew funds from her RRSP under the Lifelong Learning Plan to upgrade her skills. She has four annual installments remaining on her Lifelong Learning Plan withdrawal and a small amount of savings in a TFSA. Rebecca now works as a sales associate in a small clothing store that has a group RRSP program for all employees which matches employee contributions. Which recommendation provides the best long-term impact to grow her retirement savings?

• A.While keeping within her risk tolerance, maximize the equity component of her RRSP and TFSA plans in order to achieve significantly better returns over time.
• B.Enroll in her company's group RRSP program and start a monthly contribution.
• C.Repay the final four annual installments remaining on her Lifelong Learning Plan and start a monthly contribution plan to her RRSP.
• D.Transfer her existing TFSA savings to her RRSP and start a monthly contribution plan.

A retiree holds most of her investments in interest-bearing GICs inside a non-registered account while her TFSA is invested in cash. She has unused TFSA room and wants to improve after-tax efficiency without increasing total portfolio risk materially. What should the planner consider?

• A.Borrowing to invest in the non-registered account.
• B.Holding more interest-bearing assets inside the TFSA.
• C.Moving all assets into speculative equities.
• D.Withdrawing RRIF minimums and gifting them immediately.

Rosa has just learned that her daughter Marissa, age 23, does not intend to return to university. She has been saving for her daughter's education since Marissa was 10 and is concerned there will be a significant tax liability. How should Rosa's financial planner advise her to utilize the funds when she redeems the RESP in order to offset the tax liability?

• A.Deposit the growth into her own RRSP.
• B.Deposit the full balance into her daughter's RRSP.
• C.Deposit the growth into her daughter's RRSP.
• D.Deposit the full balance into her own RRSP.

Bruna is a senior financial planner. At 4 p.m. on Friday afternoon (an hour before closing), her manager asks her to complete the following:
Fix a mutual fund trade that was entered incorrectly by a junior financial planner.
Call her client to advise him that his account is overdrawn, and the bank will refuse recent payments unless he credits the account before 5 p.m.
Bruna determines she can only complete one of the two tasks before the end of the business day. How should Bruna address her supervisor's request?

• A.Stay after hours until she completes both tasks.
• B.Bruna should prioritize the client with the overdrawn account since he is one of her clients. She should then reverse the incorrect trade the following business day.
• C.Bruna should let the client's payments bounce since the client is unable to manage his cash flow and Bruna should prioritize correcting the trade.
• D.Ask the manager which of the two problems should be prioritized. Then ask the manager to delegate the other task to a colleague.

A client says she can emotionally tolerate a 30% portfolio decline, but she needs the money in 18 months for a home down payment and has no other savings. What should the planner conclude?

• A.Her risk capacity is low despite her stated tolerance.
• B.Her tax bracket determines that equities are required.
• C.Her high tolerance automatically supports an all-equity portfolio.
• D.Her investment experience is the only relevant factor.