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FP 2

Master Canadian financial planning with our FP 2 course. Learn mortgages, investments, retirement, and more. Prepare with realistic mock exams and excel.

In this section

  • Chapter 1: The Personal Financial Planning Process in Canada
    • The Financial Planning Business Today
      Explore how financial planning in Canada has evolved into a professional, technology-driven field encompassing regulatory oversight, collaboration, and continuing education.
    • Ethics and Financial Advisors
      Explore the essential principles and practical guidelines of ethical conduct in financial advisory, including integrity, professionalism, and client-centric practices.
    • Your Responsibility to Your Clients
      Explore the core principles of client-centric financial planning, including fiduciary-like duties, data security, privacy obligations, and ongoing portfolio management.
    • Identifying Your Client’s Goals
      Learn how to clarify, prioritize, and structure short-, medium-, and long-term financial goals to build a holistic, flexible personal financial plan in Canada.
    • Determining Your Client’s Risk Profile
      Explore how to evaluate and align a client's objective and subjective risk appetite, ensuring suitable investments and strategies for their financial goals.
    • The Financial Planning Process
      Explore the six-step, client-centric financial planning process recognized by leading Canadian organizations. Learn how to establish strong client relationships, set SMART goals, develop tailored recommendations, implement plans, and monitor progress.
  • Chapter 2: Net Worth and Cash Management Planning
    • Net Worth Planning
      Learn how to calculate, analyze, and optimize net worth for long-term financial health, exploring asset and liability management, practical case studies, and strategies to enhance overall wealth.
    • Create a Comprehensive Financial Plan
      Learn how to build a versatile, long-term strategy that addresses net worth, cash flow, tax, risk, and more for robust financial health.
    • Cash Management Planning
      Explore strategies to manage income, expenses, and short-term assets effectively, ensuring day-to-day obligations are met while enhancing overall cash flow and financial stability.
    • Savings Planning
      Learn how to effectively allocate surplus income toward your financial goals, balance short-term and long-term savings, and leverage Canadian incentives like TFSAs, RRSPs, and government grants.
  • Chapter 3: Debt Planning
    • The Use of Credit
      Explore the fundamentals of credit usage within debt planning, including interest rates, repayment schedules, consumer protections, and strategies for maintaining healthy borrowing habits.
    • Refinance Debt to Meet Goals
      Learn how refinancing can help reduce costs, consolidate debt, and achieve your financial objectives through practical examples, Canadian market insights, and best practices.
    • Lease-versus-Buy: Key Factors for Informed Financial Planning
      Discover the fundamentals of lease vs. buy decisions in Canada by exploring total cost of ownership, tax considerations, and practical tips for personal or business scenarios.
    • Borrow to Invest
      Explore the fundamentals of leveraged investing in Canada, including its risks, potential rewards, tax considerations, and essential best practices for managing debt and maintaining a balanced portfolio.
  • Chapter 4: Financial Planning and Mortgages
    • Legal Considerations of Owning Real Estate
      Explore fee simple, condominium, co-operative, and leasehold real estate ownership structures in Canada. Learn about multiple-party ownership, family home regulations, key legal documents, and how to mitigate common risks. Includes tips, diagrams, and references.
    • Mortgage Planning
      Discover core mortgage planning concepts, including conventional vs. high-ratio mortgages, interest-saving strategies, and crucial Canadian regulations to help you confidently navigate the mortgage landscape.
  • Chapter 5: Investment Management
    • Modern Portfolio Theory
      Explore the foundational principles of Modern Portfolio Theory, focusing on risk-return optimization, diversification, the Efficient Frontier, and practical portfolio construction strategies within the Canadian regulatory landscape.
    • Helping Your Clients Choose the Right Investment
      Explore key principles, regulatory requirements, asset classes, and practical steps for helping clients select investments aligned with their goals and risk tolerance in the Canadian context.
    • Measuring Portfolio Performance
      Explore how to evaluate investment portfolios using benchmarks, risk-adjusted metrics, and attribution analysis for realistic, transparent financial planning results.
  • Chapter 6: Tax Planning Strategies
    • Tax Planning Strategies
      Learn how to legally and strategically arrange finances to reduce tax liabilities in Canada, balance short-term tactics with long-term goals, and stay compliant with CRA regulations.
    • Income Splitting
      Explore strategies and best practices for reducing a family’s overall tax burden by redistributing income among family members in lower tax brackets, including spousal RRSPs, prescribed rate loans, family trusts, and pension income splitting.
    • Tax Shelters
      Discover how tax shelters operate in Canada, from legitimate vehicles like RRSPs and flow-through shares to the CRA's rules and anti-avoidance provisions, and learn strategies for effectively evaluating their economic substance.
    • Other Tax Planning Strategies
      Explore key tax planning strategies beyond the basics of income splitting and tax shelters, including capital gains/loss planning, dividend income optimization, charitable donations, registered accounts, business incorporation, and estate freezes.
  • Chapter 7: Tax Planning Using Registered and Trust Accounts
  • Chapter 8: The Retirement Planning Process
    • Retirement Income Needs Analysis
      Learn how to project and meet your retirement income needs by analyzing lifestyle goals, considering inflation and longevity risk, and optimizing income sources in Canada's evolving financial landscape.
    • The Impact of OAS on Retirement Plans
      Explore how Old Age Security (OAS) eligibility, deferral options, and the clawback can affect Canadian retirement strategies, with practical examples and tools for optimizing OAS benefits.
    • The Impact of GIS on Retirement Plans
      Explore how the Guaranteed Income Supplement (GIS) affects a Canadian retiree's overall income strategy. Learn eligibility rules, best practices to protect GIS benefits, and how to integrate GIS considerations into a personalized retirement plan.
    • The Impact of CPP/QPP on Retirement Plans
      Discover how the Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP) integrate into your broader retirement strategy, examining contribution mechanics, early and late retirement factors, and survivor benefits.
    • The Impact of Registered Pension Plans on Your Retirement Plans
      Explore how Registered Pension Plans (RPPs) influence retirement income in Canada, covering Defined Benefit and Defined Contribution structures, vesting rules, locked-in provisions, spousal rights, portability, and tax integration strategies.
    • Deferred Profit Sharing Plans
      Explore the key mechanics, benefits, and considerations of Deferred Profit Sharing Plans (DPSPs), including employer contributions, tax implications, vesting, and integration with other retirement vehicles.
    • Individual Pension Plans (IPPs) in Canada: Key Retirement Strategy
      Explore how IPPs provide significant tax-deferred retirement savings for owners of small corporations and high-income executives, complete with best practices, regulatory requirements, and actuarial insights.
    • Supplemental Executive Retirement Plans
      Discover how Supplemental Executive Retirement Plans (SERPs) provide top-up benefits beyond registered plan limits for high-earning executives, covering structures, funding, tax considerations, and practical tips for effective retirement planning.
    • Salary Deferral Arrangements: Understanding and Best Practices
      Discover how salary deferral arrangements can be strategically integrated into retirement plans while staying compliant with Canadian tax regulations. Explore definitions, real-world examples, key pitfalls, and best practices to help clients optimize tax-efficient compensation structures.
  • Chapter 9: RRSPs and Retirement Income Products
    • Planning Your RRSP Contributions
      Explore optimal RRSP contribution strategies, tax considerations, timing, and special programs such as the Home Buyers’ Plan and Lifelong Learning Plan to maximize retirement savings in Canada.
    • Selecting the Right Investments for Your RRSP
      Learn how to choose, diversify, and manage the right investments within your RRSP, aligning with your risk tolerance, retirement goals, and Canadian financial regulations.
    • Locked-In RRSPs and Group RRSPs
      An in-depth look at how locked-in retirement savings and group RRSP arrangements operate in Canada, including key legislation, unlocking provisions, and practical employer-sponsored plan strategies.
    • Registered Retirement Income Funds (RRIFs) in Canada
      A comprehensive exploration of RRIFs, covering minimum withdrawal rules, tax implications, beneficiary designations, and strategic retirement income planning for Canadians.
    • Life Income Funds – Maximizing Your Locked-In Retirement Savings
      Discover how Life Income Funds provide a structured pension-based income stream, the rules surrounding minimum and maximum withdrawals, unlocking provisions, and legislative nuances to ensure a sustainable retirement in Canada.
    • Annuities Guaranteed Income Solutions in Canada
      Discover how annuities provide stable, guaranteed retirement income, explore various annuity types, understand taxation, and learn strategic considerations for Canadian retirees.
  • Chapter 10: Life Insurance Products, Features, and Taxation
    • Selecting Representatives and Companies for Life Insurance
      Learn how to effectively choose life insurance representatives—whether captive agents or independent brokers—and evaluate insurance companies in Canada, considering licensing, financial stability, underwriting, and potential conflicts of interest.
    • Conducting a Life Insurance Needs Analysis
      Discover the key steps, methods, and considerations to determine appropriate life insurance coverage, along with practical examples and regulatory references for comprehensive financial planning in Canada.
    • Business and Personal Applications
      Explore how life insurance supports both individual and corporate needs through personalized coverage, key person strategies, buy-sell agreements, collateral insurance, and executive compensation planning. Learn about tax considerations, the Capital Dividend Account, and best practices for coordinating insurance with broader financial and estate planning goals.
    • Tax Treatment of a Life Insurance Policy
      Explore essential tax considerations for life insurance policies in Canada, including tax-free death benefits, exempt policy rules, adjusted cost basis implications, policy loans, and corporate ownership scenarios for enhanced estate planning.
    • Calculating Taxes on Life Insurance
      Dive into the critical aspects of calculating taxable gains, ACB adjustments, and policy transactions within Canadian life insurance. Explore scenarios involving partial withdrawals, policy loans, dividend options, and estate planning considerations to master the fundamentals of life insurance taxation in Canada.
  • Chapter 11: Insurance Contracts
    • Legal Aspects of the Insurance Contract
      Discover the essential elements of a valid insurance contract in Canada, including unique principles such as utmost good faith and insurable interest. Learn how provincial legislation, the Civil Code of Quebec, and federal oversight shape insurance law and practice.
    • Policy Provisions, Riders, and Dividend Options
      An in-depth exploration of key life insurance contract provisions, including riders, dividend strategies, and non-forfeiture options, tailored to the Canadian market.
  • Chapter 12: Insurance to Protect Income and Savings
    • Disability Insurance: A Comprehensive Guide
      Learn how disability insurance protects individuals from income loss due to illness or injury, key definitions, policy structures, needs analysis, and best practices in Canada.
    • Critical Illness Insurance: Safeguarding Your Finances from Major Health Events
      Explore the essentials of critical illness insurance in Canada, including coverage specifics, ROP riders, premium factors, and best practices for financial resilience when facing serious medical diagnoses.
    • Long-term Care Insurance
      Explore the essentials of long-term care insurance in Canada, covering coverage options, policy triggers, plan designs, and key considerations to protect individuals and families from the financial burden of extended care.
    • Provincial Medical Insurance in Canada: Understanding Coverage and Gaps
      Discover how provincial medical insurance plans work in Canada, the services they typically cover, and how to bridge gaps through private insurance solutions. This comprehensive section highlights key considerations for financial planners and clients alike, including travel coverage, drug formularies, and strategies for staying up-to-date with evolving healthcare regulations.
    • Extended Health Insurance
      Discover how extended health insurance supplements provincial coverage, reduces out-of-pocket healthcare costs, and supports a holistic financial plan in Canada.
    • Travel Insurance Protecting Your Adventures
      Explore how the right travel insurance can safeguard you against unexpected costs, cancellations, and medical emergencies while traveling, with Canadian-specific considerations, practical examples, and best practices.
    • Group Life and Health Insurance
      Discover the essentials of employer-sponsored group life and health insurance, including coverage types, cost-sharing arrangements, conversion privileges, and key regulatory considerations in Canada.
  • Chapter 13: General Insurance
  • Chapter 14: Business Law
    • Features of Contracts
      Explore the essential characteristics of legally enforceable agreements, including offer, acceptance, consideration, capacity, lawful object, and clarity—tailored for Canadian financial professionals.
    • Types of Contracts
      Explore the different types of contracts—express, implied, bilateral, unilateral, valid, void, voidable, written, oral, and specialty—essential for Canadian financial planning and business law.
    • The Termination or Discharge of a Contract
      Learn about key methods and legal considerations for ending contracts in a Canadian business and financial context. Explore real-world examples, best practices, and guidance for financial planners.
    • Agency Relationships
      Explore how principals and agents collaborate in financial planning, the duties and liabilities involved, and best practices under Canadian regulations.
  • Chapter 15: Financial Planning for Small Business
    • Forms of Business Entities
      Discover the key characteristics, benefits, and drawbacks of various Canadian business structures, including sole proprietorships, partnerships, corporations, and cooperatives, and learn how to select the right entity for your unique financial planning goals.
    • Business Valuations
      Explore the fundamentals of business valuations, including asset, income, and market approaches, their advantages, and practical examples within the Canadian context.
    • Employment Law
      A comprehensive guide to Canadian employment law essentials for small business owners, covering crucial topics like employment standards, OHS, human rights, and contracts.
    • Business Taxation
      Learn the essentials of corporation tax, GST/HST, payroll levies, and provincial obligations to optimize after-tax income and ensure compliance in Canada.
    • Death of the Business Owner — Estate Freezes
      Learn how an estate freeze can help business owners lock in current share values, minimize capital gains taxes, and plan for the smooth transfer of ownership to future generations.
  • Chapter 16: Family Law
    • Fundamental Aspects of Family Law
      Discover the core principles and legal frameworks of Canadian Family Law, including federal and provincial legislation, the distinctions between marriage and common-law relationships, spousal support, and child custody. This comprehensive guide examines the protective measures in place to prioritize the best interests of the child and explores how financial planners can best serve clients navigating family law matters.
    • Financial Issues in Family Law
      Explore the complexities of child support, spousal support, tax implications, imputed income, and more in a Canadian context—complete with practical examples, diagrams, budgeting tools, and official guidelines.
    • Property Issues on Relationship Breakdown
      A detailed look at how Canadian family law deals with the division of property upon the breakdown of a relationship, including special treatment of the matrimonial home, exclusions, equalization, and the valuation of pensions.
    • Domestic Contracts
      Explore critical aspects of domestic contracts in Canada, including cohabitation agreements, marriage contracts, separation agreements, enforceability requirements, and their broader impact on financial and estate planning.
    • Impact of Divorce on a Client’s Financial Plan
      Explore how divorce can fundamentally alter a client’s financial plan and learn practical strategies for reassessing net worth, cash flow, risk profiles, and estate considerations.
  • Chapter 17: Trusts and Powers of Attorney
    • Setting Up a Trust
      Learn how trusts are created, managed, and administered in Canada, and discover their vital role in estate planning, tax considerations, and protecting beneficiaries.
    • Taxation of Trusts
      Explore how trusts are taxed in Canada, including distributions, the 21-year deemed disposition rule, testamentary trusts, spousal trusts, and family trusts. Learn key strategies for minimizing tax, staying compliant, and optimizing trust benefits for beneficiaries.
    • Power of Attorney
      Explore the essential concepts of Power of Attorney, types of POAs in Canada, and best practices for drafting a robust financial and personal care plan.
    • Power of Attorney for Property
      Explore the intricacies of granting power of attorney for property, including the scope of authority, key responsibilities, enduring provisions, and best practices for Canadian financial planning.
    • Power of Attorney for Personal Care
      Discover how a Power of Attorney for Personal Care ensures your health care and personal living preferences are respected if you become incapacitated, with guidelines to help financial planners and individuals navigate this critical legal tool.
    • Risks and Considerations with Powers of Attorney
      Dive into core concepts and practical steps to mitigate risks related to Powers of Attorney. Learn about abuse prevention, capacity requirements, conflict of interest management, record-keeping, revocation, and professional guidance in Canada’s financial planning environment.
  • Chapter 18: Passing on the Estate
    • Preparing a Will
      Learn how to draft, review, and update a valid will in Canada, including key provincial requirements, executor responsibilities, naming beneficiaries, and integrating the will with your overall financial plan.
    • Probating a Will
      Discover the essential steps, legal implications, and practical tips for probating a will in Canada, including important variations in Quebec and strategies to streamline the estate settlement process.
    • Reducing the Impact of Probate
      Explore various strategies to reduce the impact of probate in Canada, including joint ownership, beneficiary designations, trusts, spousal rollovers, corporate structures, and insurance solutions.
    • Minimizing or Deferring Taxes Right before Death
      Learn how to strategically minimize or defer taxes before death through estate freezes, charitable gifting, and careful asset transfers in Canada.
    • Minimizing or Deferring Taxes Upon Death
      Learn practical strategies for reducing tax burdens triggered by death through post-mortem planning, spousal rollovers, trusts, and more, in compliance with Canadian estate laws.
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Wednesday, March 19, 2025