CFP Board was founded in what year?
1985
Within how many days must a CFP® pro inform CFP Board of an address change?
30 days
How many CE hours per reporting period are required?
30 hours
CFP Board can order a license suspension not to exceed ___ years.
5
Responses to complaints shall be in writing and
submitted within ___ calendar days.
30
Evidence in support of an investigation may be submitted up to ___ days prior to the scheduled hearing.
45
Use of Initials
Registered Investment Advisor and
Certified Financial Planner
NO:
- RIA
- C.F.P.
YES:
- Registered Investment Advisor
- CFP®
- CERTIFIED FINANCIAL PLANNER®
When can a CFP® pro release client information to other persons?
- When an attorney or court subpoenas the information
- At the client’s request
- As a defense against charges of wrongdoing
Determining the Release of an Emergency Fund
(Use 3 or 6 months if…)
3 months if:
- Single with 2nd source of income
- Married, both work
- Married, only 1 spouse works, but have a second source of income
6 months if:
- Single wage earner
- Married and only 1 spouse works
How much consumer debt is considered acceptable?
≤20% of NET income
How much Total Monthly Debt is considered acceptable?
≤36% of GROSS income
How much PITI is considered acceptable?
≤28% of GROSS income
Current Ratio
Current Assets ÷ Current Liabilities
Current Assets
- Cash Equivalents
- Marketable Securities
- Accounts Receivable
- Inventory
Current Liabilities
- Accounts Payable
- Credit Card Debt
- Taxes Payable
Securities Act of 1933
The Securities Act of 1933 required that new issues purchasers be provided a detailed prospectus before the purchase was completed.
Securities Act of 1934
The Securities Act of 1934 was passed to regulate the secondary market (the trading of issued securities). The act also created the SEC to enforce securities laws.
Investment Company Act
of 1940
Investment Company Act of 1940 authorized the SEC to regulate Unit Investment Trusts (UIT) and managed investment companies (closed- and open-end funds) and variable products.
Securities Investors Protection Act of 1970
Securities Investors Protection Act of 1970 established the SIPC to supervise securities firms that get into financial difficulties. The SIPC insures investors against losses arising from the failure of a brokerage firm.
College Funding Phaseouts
2026 Phaseouts given (MFJ)
- Educational Bonds ($152,650 - $182,650)
- Lifetime Learning Credit ($160K - $180K)
- American Opportunity ($160K - $180K)
529 Keys
- Lump sum gift up to $95,000 (2026)
- Donor can retain control
- K-12 for tuition allowed up to $20,000/yr.
- Can be used to pay student loans ($10,000/student over lifetime)
Deductible Housing Interest
All mortgages cannot exceed:
- $750K combined (MFJ) and single
- $375K (MFS)
- Home equity interest is only deductible if used for home renovation/improvement.
Federal Reserve Open Market Operations
- Repos - Fed buys securities = expansionary/easy money policy
- Reverse Repos - Fed sells securities = contractionary/tight money policy
Gross Domestic Product (GDP)
Total dollar value of all goods and services produced within the US only.
- GDP counts economic activity without regard to yearly price fluctuations.
- The GDP does not include any income generated outside the US or adjustments for foreign currencies.
