AFP Exam 1 case studies
AFP Exam 1 · Put your knowledge to work in context.
The Accredited Financial Planner (AFP) designation is a professional credential for practitioners who build and deliver comprehensive financial plans for individual clients. It suits advisers moving beyond single-product sales into holistic work: cash-flow and budget design, tax positioning, insurance and risk review, investment policy and asset allocation, retirement projections, estate transfer, and the employee benefits and equity compensation that shape a household balance sheet. The AFP Exam 1 case studies are 5 cases and about 3,326 words.
1The Newly Divorced Client With a Windfall and a Deadline
Mei, 47, finalized her divorce nine months ago. She received a lump-sum settlement of 420,000 and keeps the house, which carries a 310,000 mortgage at 6.1% with 24 years remaining.
707 words, about 4 min2The Business Owner's Buy-Sell and the Uninsurable Partner
Ravi and Tom are 50/50 owners of a specialty fabrication company valued at 3.2 million. Their buy-sell agreement is a cross-purchase funded by 1.6 million of term life insurance on each owner.
632 words, about 3 min3The Early Retiree and the Roth Conversion Window
Dana, 58, retired last year. She has 1.9 million in a traditional 401(k), 240,000 in a taxable brokerage account with a 90,000 unrealized gain, and 60,000 in a Roth IRA opened 12 years ago.
657 words, about 3 min4The Blended Family and the Irrevocable Trust
George, 68, is remarried to Linda, 61. He has two children from his first marriage, ages 41 and 38, and Linda has one child, 34.
658 words, about 3 min5The Commission-Compensated Advisor and the Rollover Recommendation
Priya is a financial advisor compensated partly by commissions on annuities and mutual funds and partly by a flat planning fee. A client, Alan, 62, is retiring and wants to roll over his 780,000 employer 401(k) into an indexed annuity Priya recommends.
672 words, about 3 min