Mock paper #5
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.
What is waiver and estoppel in an insurance context?
What distinguishes a home equity line of credit from a home equity loan?
A client's portfolio is 55% equities, 35% bonds and 10% cash against a 60/35/5 target. Bands are five points. What action is needed?
The paper carries one for every question, at the back. These are the three above.
Answer: D - An insurer giving up a right may be prevented from later asserting it
Because Waiver is the voluntary relinquishment of a known right. Estoppel prevents a party going back on a position the other has reasonably relied on to their detriment. Money Education, Insurance Planning, ch. 3
An insurer that accepts premiums knowing of a breach, or whose agent tells the insured a condition does not matter, may be prevented from relying on it later. Reservation of rights letters exist to avoid exactly that. Competency Handbook ch. 17
Where the other options lead
Answer: D - A line of credit is revolving and usually variable rate; a loan is a lump sum at a fixed rate
Because A home equity line of credit is a revolving facility drawn as needed, usually at a variable rate, with a draw period followed by a repayment period. A home equity loan advances a lump sum, usually at a fixed rate, and amortises from the start. Money Education, Fundamentals of Financial Planning, ch. 4
Both are secured on the home, which is the point that matters for advice: consumer spending funded this way converts unsecured risk into a claim on the client's residence. Competency Handbook ch. 8
Where the other options lead
Answer: B - Move cash into equities, since cash is outside its band and equities are at the edge
Because Cash is 5 points above a 5% target, which is a 100% relative overweight and at or beyond any reasonable band. Equities are 5 points below target. Moving cash to equities fixes both in one trade.
Small targets need relative bands rather than absolute ones. Five points on a 5% target is a doubling; five points on a 60% target is a modest drift. Competency Handbook ch. 30
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.