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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Professional Conduct and Regulatory Compliance | 10% | - Regulatory Requirements - Compliance Responsibilities - Ethics and Professional Standards |
| Topic 2: Investment Planning | 17% | - Asset Allocation - Investment Theory - Investment Products - Portfolio Construction |
| Topic 3: Estate Planning | 13% | - Estate Transfer Strategies - Wills - Powers of Attorney - Trust and Beneficiary Planning |
| Topic 4: Retirement Planning | 17% | - Retirement Needs Analysis - Registered Retirement Savings Plans - Retirement Income Strategies - Pension Plans |
| Topic 5: Tax Planning | 14% | - Tax-Efficient Strategies - Registered Plans - Tax Deductions and Credits - Income Tax Fundamentals |
| Topic 6: Asset and Liability Management | 11% | - Cash Flow Management - Debt Management - Budgeting - Personal Balance Sheet Analysis |
| Topic 7: Client Relationship and Practice Management | 6% | - Client Discovery - Practice Management - Communication and Advisory Process |
| Topic 8: Risk Management and Insurance | 12% | - Life Insurance - Risk Assessment - Risk Transfer Strategies - Disability and Health Insurance |
1. Gina plans to take a one-year leave of absence from her employer without pay. Gina has a TFSA invested in equity mutual funds which is currently below book value, an RRSP invested in cash, a Nova Scotia LIRA invested in GICs, and a line of credit. Assuming all have sufficient funds, which plan should Gina access to ensure she meets her goal of budget effectiveness during this time?
A) The LIRA.
B) The line of credit.
C) The TFSA.
D) The RRSP.
2. A retiree receives income-tested benefits and needs occasional withdrawals for vacations and home repairs.
Which account is generally most efficient for withdrawals that do not increase taxable income?
A) RRIF.
B) Non-registered interest-bearing GIC.
C) TFSA.
D) RRSP.
3. Miles tells Rasheed, his financial planner, that he would like to assign the growth assets in his portfolio to his children. Rasheed recommends Miles freeze his estate. What is the primary risk associated with an estate freeze?
A) It is easy to unwind an estate freeze, but the amount of income paid to the taxpayer will be inconsistent from year to year.
B) Once the children hold the common shares, they can vote to withhold payment of the preferred dividend.
C) The preferred shares taken back by the taxpayer may provide inadequate Income because of inflation.
D) Once the estate freeze is in place, no future growth of the assets can occur.
4. Alexis has an index-linked GIC with an adjusted cost base of $20,500. The GIC was issued one year ago, has four years remaining to maturity and provides her with 60% participation in the gains of the S & P/TSX 60 Index, based on the level of the Index at maturity or at redemption prior to maturity. The GIC has a 2% fee if redeemed in the first two years. Alexis notices that the S & P/TSX 60 Index is up 25% and she would like to redeem her GIC. She asked her financial planner if she redeems her GIC, how much she would receive upon redemption. What will her financial planner tell her?
A) She will receive $23,104.
B) She will receive $20,500.
C) She will receive $25,625.
D) She will receive $23,575.
5. A client wants to state her wishes about medical treatment if she becomes incapable of communicating.
Which document is most directly relevant?
A) Net worth statement.
B) Trade authorization form.
C) Investment policy statement.
D) Living will or personal care directive.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: D |
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