PFS study guide
PFS · Work through your exam, one topic at a time.
The Personal Financial Specialist (PFS) is a credential offered by the American Institute of Certified Public Accountants (AICPA) for CPAs who provide personal financial planning services. It signals advanced expertise in integrated planning-cash flow, risk management, investments, taxes, retirement, estates, and business owner planning-within a CPA's fiduciary and ethical framework. The PFS study guide has 9 sections and about 2,573 words.
01Financial Planning Process and Professional Responsibilities
This domain tests whether you can run an engagement from scope through monitoring while meeting the AICPA personal financial planning standards. The exam favors process discipline: define the relationship, gather qualitative and quantitative data, analyze, recommend, communicate, implement, and monitor.
305 words, about 2 min02Cash Flow and Net Worth Management
This domain tests construction and interpretation of personal cash-flow statements and net-worth statements, plus the ratios used to diagnose liquidity, debt capacity, and savings adequacy. Cash flow: cash inflows minus cash outflows; separate fixed, variable, and discretionary expenses; include irregular items such as insurance premiums and taxes.
302 words, about 2 min03Risk Management and Insurance Planning
This domain tests exposure identification, insurance needs analysis, and policy selection for life, disability, health, property, liability, and long-term care risks. Risk handling techniques: avoid, reduce, retain, transfer, and share.
272 words, about 1 min04Investment Planning and Asset Allocation
This domain tests the investment policy statement, risk tolerance and capacity, strategic asset allocation, diversification, performance measurement, and rebalancing. Investment policy statement: objectives, return requirement, risk tolerance, time horizon, liquidity, taxes, legal constraints, and unique circumstances.
269 words, about 1 min05Income Tax Planning
This domain tests individual federal income tax planning: marginal and effective rates, deductions versus credits, basis, capital gains, timing, and estimated taxes. Marginal rate applies to the next dollar; effective rate is total tax divided by taxable income or gross income.
294 words, about 1 min06Retirement Planning
This domain tests accumulation and decumulation: qualified plans, IRAs, Social Security, RMDs, withdrawal rates, and inflation and longevity risk. Employer plans: 401(k), 403(b), and defined-benefit plans; know vesting, matching, contribution limits, and loan provisions.
283 words, about 1 min07Estate Planning
This domain tests lifetime and testamentary wealth transfer: documents, titling, beneficiary designations, trusts, gift and estate tax, basis, and probate. Core documents: will, revocable living trust, durable power of attorney, health-care proxy, and HIPAA authorization.
303 words, about 2 min08Business and Entity Planning for Individuals
This domain tests how business ownership affects an individual's financial plan: entity choice, compensation, benefits, basis, self-employment tax, QBI, and succession. Sole proprietorship: simple, but unlimited liability and self-employment tax on net earnings.
265 words, about 1 min09Ethics and Fiduciary Standards
This domain tests the AICPA Code of Professional Conduct and fiduciary conduct in personal financial planning: integrity, objectivity, due care, confidentiality, conflicts, and compensation disclosure. AICPA principles: responsibilities, public interest, integrity, objectivity and independence, due care, and scope and nature of services.
280 words, about 1 min