CFP Exam Curriculum

Certification: Certified Financial Planner (CFP®) Administering Body: CFP Board Exam Format: 170 multiple-choice questions, two 3-hour sessions Passing Score: ~67% (~114 correct) Content Path: /content/cfp/

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Curriculum Overview

The CFP curriculum covers 8 principal knowledge domains as defined by the CFP Board. Content is organized by chapter, with each chapter containing at least one detailed study module. All chapters follow the standard format: CFP Exam Relevance → Core Concepts → Planning Application → Key Formulas and Numbers → What the Exam Tests → Practice Questions.

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Chapter Structure

Chapter 1 — Professional Conduct and Regulation

Domain Weight: 8% (~14 questions) Folder: Chapter 1 - Professional Conduct and Regulation/

| File | Topic | Key Concepts | |---|---|---| | 1.1 - CFP Ethics and Fiduciary Duty.md | Ethics, fiduciary standard, regulatory framework | Fiduciary vs. suitability, CFP Board code, SEC/FINRA/state regulation, disciplinary process |

Core competencies this chapter builds:

• Identify when and how fiduciary duty applies to CFP professionals
• Distinguish fiduciary standard from suitability standard and Reg BI
• Apply CFP Board disciplinary framework to misconduct scenarios
• Identify the correct regulatory body for a given advisor profile
• Recognize conflicts of interest and determine appropriate response

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Chapter 2 — General Financial Planning Principles

Domain Weight: 15% (~26 questions) Folder: Chapter 2 - General Financial Planning Principles/

| File | Topic | Key Concepts | |---|---|---| | 2.1 - The Six-Step Financial Planning Process.md | 6-step process, TVM, personal finance ratios, education planning | Process sequence, annuity calculations, real vs. nominal, 529 plans, financial ratios |

Core competencies this chapter builds:

• Execute the 6-step CFP planning process and identify which step is occurring
• Perform TVM calculations: lump sum, annuity, annuity due, multi-step projections
• Calculate real rate of return and convert between nominal and real dollars
• Evaluate a client's financial health using key ratios (emergency fund, housing, debt service)
• Apply 529 plan rules including superfunding and the SECURE 2.0 Roth rollover provision

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Chapter 3 — Risk Management and Insurance Planning

Domain Weight: 11% (~19 questions) Folder: Chapter 3 - Risk Management and Insurance Planning/

| File | Topic | Key Concepts | |---|---|---| | 3.1 - Life and Disability Insurance Planning.md | Life insurance types, disability definitions, LTC, annuities | Term vs. permanent, own-occupation definition, SSDI, exclusion ratio, LTC ADLs |

Core competencies this chapter builds:

• Apply the risk management process to client insurance needs
• Calculate life insurance needs using the needs approach
• Distinguish disability definitions and identify optimal coverage for professional clients
• Apply the annuity exclusion ratio to determine taxable vs. non-taxable payments
• Select appropriate LTC insurance structure given client longevity and asset profile
• Identify appropriate payout option for income annuities (joint and survivor, life only, etc.)

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Chapter 4 — Investment Planning

Domain Weight: 17% (~29 questions) Folder: Chapter 4 - Investment Planning/

| File | Topic | Key Concepts | |---|---|---| | 4.1 - Portfolio Theory and Asset Allocation.md | MPT, CAPM, SML, CML, performance measurement, fixed income | Efficient frontier, Sharpe, Treynor, Jensen's alpha, duration, correlation |

Core competencies this chapter builds:

• Apply Modern Portfolio Theory to portfolio construction using correlation and diversification
• Distinguish systematic vs. unsystematic risk and their measurement
• Calculate CAPM expected return and identify mispriced securities using the SML
• Select the correct performance measure (Sharpe vs. Treynor vs. Alpha) based on portfolio characteristics
• Analyze bond price sensitivity using duration and convexity
• Construct an appropriate asset allocation and IPS for a given client profile

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Chapter 5 — Tax Planning

Domain Weight: 14% (~24 questions) Folder: Chapter 5 - Tax Planning/

| File | Topic | Key Concepts | |---|---|---| | 5.1 - Income Tax Fundamentals and Planning Strategies.md | Tax structure, capital gains, deductions, business entities, AMT | Brackets, NIIT, wash sale, Sec. 121, passive activity rules, QBI deduction, S-corp tax savings |

Core competencies this chapter builds:

• Navigate the federal income tax calculation cascade from gross income to tax due
• Apply 2025 ordinary income brackets, LTCG rates, and special capital gains rates
• Execute capital gains netting rules and apply the wash sale rule correctly
• Identify above-the-line vs. itemized deductions and their AGI impact
• Analyze business entity tax treatment and the S-corp self-employment tax advantage
• Apply the passive activity loss rules including the $25,000 rental loss allowance
• Identify AMT triggers and evaluate ISO exercise tax consequences
• Design Roth conversion and capital gains harvesting strategies

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Chapter 6 — Retirement and Employee Benefits

Domain Weight: 18% (~31 questions) — HIGHEST WEIGHTED Folder: Chapter 6 - Retirement and Employee Benefits/

| File | Topic | Key Concepts | |---|---|---| | 6.1 - Retirement Planning Fundamentals and Social Security.md | Retirement needs, Social Security strategy, Medicare, qualified plans | FRA, delayed credits, spousal/survivor benefits, IRMAA, DB vs. DC, vesting | | 6.2 - IRAs, RMDs, and Distribution Planning.md | IRAs, Roth conversions, RMDs, inherited IRAs, QCDs | Deductibility phase-outs, backdoor Roth, pro-rata rule, SECURE 2.0, 10-year rule |

Core competencies this chapter builds:

• Calculate Social Security benefits at various claiming ages for workers, spouses, and survivors
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