Financial Planning Skills Certification Grade 3 study plan

Build a one-page map of the six-step planning process and label where asset allocation decisions enter it

Compute expected return, variance, and standard deviation for a two-asset portfolio by hand for three correlation cases (-1, 0, +1)

Explain the risk-return tradeoff, systematic versus unsystematic risk, and diversification limits in your own written notes

Draft a client engagement letter outline covering scope of services, fee disclosure, and client responsibilities

Match investor risk tolerance, time horizon, and liquidity needs to one of five model allocations and justify each choice

Calculate Sharpe ratio and explain when it misleads across portfolios with different volatility

Rebalance a sample portfolio to target weights and compute the tax and transaction cost consequences

Write a planning-process case note that moves a sample client from data gathering to a documented recommendation

Compute life insurance need using both the human life value and needs-analysis methods and reconcile the gap between them

Distinguish term, whole life, universal life, and variable life on premium, cash value, and risk bearing

Build a personal net worth statement and cash flow statement from a supplied data set and calculate three solvency and liquidity ratios

Identify which client data gaps would change a recommendation and list the questions needed to close them

Calculate disability income replacement need and evaluate own-occupation versus any-occupation definitions

Explain coinsurance, deductibles, and exclusions in health and property-casualty coverage using worked numeric examples

Compare defined benefit and defined contribution plans on benefit certainty, portability, and investment risk

Compute a retirement funding gap using assumed pre-retirement income replacement ratios and inflation-adjusted spending

Calculate the effect of contribution timing, employer match, and vesting schedules on projected retirement balances

Compare annuity payout options and estimate the break-even age between lump sum and lifetime annuity

Build a 12-month household budget that funds emergency reserves, debt service, and retirement contributions in priority order

Apply three cash flow ratios to a sample budget and flag where the household is structurally overspending

Compute marginal versus average tax rates and show how a deduction and a credit differ in after-tax value

Explain capital gains treatment, holding periods, and tax-advantaged account contribution limits and sequencing

Model a goal accumulation plan in a taxable account versus a tax-deferred account over 20 years

Reconcile a client's stated goals with their cash flow capacity and document any goal that must be deferred

Explain intestate succession, probate, and the function of wills, trusts, and beneficiary designations

Calculate estate transfer exposure under a stated exemption and show the effect of one gifting or trust strategy

Apply the fiduciary duty of care and loyalty to three short ethical scenarios and state the correct action

Identify conflicts of interest, compensation disclosure obligations, and record-keeping requirements in a sample advisory relationship

Integrate all nine domains into one end-to-end client case from engagement through monitoring

Complete two timed mock exams and categorize every error by domain and by cause (knowledge gap, misread, calculation)

Rehearse explaining a recommendation to a client in plain language without jargon

Write a personal exam-day checklist covering formulas, calculator use, and time allocation per domain weight