Mock paper #4
A full paper drawn to the blueprint. Answers and worked explanations are at the back of this file.
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Sit this the way you will sit the real one. A mock done in pieces over three evenings measures your notes, not your recall.
| Area | Questions | Share |
|---|---|---|
| Retirement Savings and Income Planning | 31 | 18% |
| Investment Planning | 29 | 17% |
| General Principles of Financial Planning | 25 | 15% |
| Tax Planning | 24 | 14% |
| Risk Management and Insurance Planning | 19 | 11% |
| Estate Planning | 17 | 10% |
| Professional Conduct and Regulation | 13 | 8% |
| Psychology of Financial Planning | 12 | 7% |
| Total | 170 | 100% |
CFP Board does not publish a passing score. The commonly-quoted figure (around 60-70%) is the pass RATE - the share of candidates who passed a sitting - not the mark you need. Our readiness target is measured against our own question bank.
Circle one letter for each question.
170 questions. 360 minutes.
A client rents out a spare room through a short-let platform. What should the planner check?
A client asks whether to borrow for their child's education or to reduce their retirement saving.
Why does a buy-sell agreement need a valuation method written into it?
The paper carries one for every question, at the back. These are the three above.
Answer: A - Whether the homeowner policy excludes the business use and what the platform actually covers
Because Standard homeowner forms exclude business activities. A guest injury or damage caused by a paying occupant may not be covered, and platform protection is usually narrower and more conditional than clients assume. Money Education, Insurance Planning, ch. 11
The fix is an endorsement or a separate policy written for short-term rental use. It is a common gap because clients do not think of themselves as running a business. Competency Handbook ch. 26
Where the other options lead
Answer: C - Borrowing is usually preferable, since retirement cannot be funded by borrowing later
Because The asymmetry is the whole point: education can be borrowed for and retirement cannot. Interrupting retirement saving in a client's peak earning years also forgoes the compounding those contributions would have earned. Competency Handbook ch. 51
It is a default rather than an absolute. A client whose retirement is already fully funded, or who is unwilling to see their child borrow, is entitled to decide otherwise once the trade-off has been quantified. Money Education, Fundamentals of Financial Planning, ch. 6
Where the other options lead
Answer: C - Because a fixed method agreed in advance can support the value used for estate tax purposes
Because An agreed method fixes what the interest is worth when the trigger event happens, and where the agreement meets the requirements it can support the value reported for estate tax. Without one, the price is argued over at the worst possible moment. Money Education, Estate Planning, ch. 13
The requirements are strict: a bona fide business arrangement, not a device to transfer value to family for less than full consideration, and terms comparable to an arm's length arrangement. Competency Handbook ch. 19
Where the other options lead
CFP Exam: the whole syllabus taught, the questions that test it, 5 timed mocks, and all 6 PDFs to print.