Financial Planning Body of Knowledge

The Financial Planning Body of Knowledge (FP-BoK) describes knowledge expected of CFP^® professionals and QAFP^TM professionals.

knowledge topics

Identify investment buying and selling techniques, such as:
- Market timing
- Dollar cost averaging
- Value averaging
- Dividend reinvestment plans (DRIP)
- Systematic withdrawal plans
Explain investment buying and selling techniques.
Compare dollar cost averaging to investing a lump sum, specifically:
- Total return
- Short term volatility
Explain the effect of reinvested distributions (from a dividend reinvestment program) on adjusted cost base.
Explain risks associated with market timing, such as:
- Potential lower returns
- Potential missed opportunities
- Potential loss of capital gains inclusion rate

Define

To state exactly the meaning of
Identify

To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain

To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Compare

To note the similarities and differences between two or more things
Estimate

To determine an approximate value for
Calculate

To find the value using mathematics
Convert

To change from one form or purpose to another
Evaluate

To reach a conclusion or make a judgement through careful study
Interpret

To give the meaning of / to construe or understand / to translate orally