The Financial Planning II (FPII) (FP2) certification exam is one of the best credentials in the modern CSI world. The Financial Planning II (FPII) (FP2) certification offers a unique opportunity for beginners or experienced professionals to demonstrate their expertise and knowledge with an industry-recognized certificate. With the CSI FP2 Exam Dumps, you can not only validate your skill set but also get solid proof of your proven expertise and knowledge.
| Section | Weight | Objectives |
|---|---|---|
| Retirement Planning | 20% | - Registered Pension and Retirement Income Plans
|
| Financial Planning for Small Business | 15% | - Small Business Financial Planning
|
| Insurance Planning | 10% | - Disability and Health Insurance
|
| Family Law | 15% | - Fundamental Aspects of Family Law
|
| Savings Planning and Debt Management | 10% | - Net Worth and Cash Management Planning
|
| Estate Planning | 10% | - Trusts and Powers of Attorney
|
| Investment and Tax Planning | 10% | - Investment Management
|
| Financial Planning Practice | 10% | - The Personal Financial Planning Process in Canada
|
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NEW QUESTION # 20
Chris reviewed the current investment portfolio of his client, Judy. Chris determined that Judy needs a higher rate of return in order to retire within five years. Judy's portfolio is concentrated in fixed income instruments.
What is Chris's next step to help Judy achieve her retirement goal?
Answer: B
Explanation:
Before Chris changes Judy's asset allocation or recommends higher-return investments, he must determine the level of investment risk that Judy can appropriately accept.
A higher required rate of return normally requires greater exposure to investment risk. Judy's present concentration in fixed-income securities may not generate the return necessary to meet her five-year retirement objective, but this does not automatically justify moving her into equities or other higher-volatility assets.
The advisor must evaluate Judy's risk profile, including her risk tolerance, risk capacity, required return, investment time horizon, liquidity requirements, and ability to absorb losses. Her five-year period until retirement is particularly important because a major portfolio decline immediately before retirement can materially impair the sustainability of retirement withdrawals.
Only after establishing an acceptable risk level can Chris determine an appropriate asset mix and select specific investments. Option D therefore comes later. Option C may form part of the broader solution if the required return is inconsistent with Judy's risk capacity, but it is not the immediate portfolio-management step.
The correct sequencing is to reconcile Judy's return objective with an acceptable and financially sustainable degree of risk.
FPII reference/topic: Investment and Tax Planning - risk profiling; required return; risk capacity and tolerance; asset allocation.
NEW QUESTION # 21
If an employee earns more than the yearly maximum pensionable earnings, but an employer continues to deduct Canada Pension Plan contributions, what will happen to the excess contributions?
Answer: A
Explanation:
Where an employee has contributed more CPP than required for the year, the excess employee contribution is ultimately refunded or credited through the individual's income tax return.
CRA specifically provides for CPP overpayments to be calculated on the applicable Schedule 8 or interprovincial CPP/QPP form. The excess is reported on the individual's tax return, and CRA will either refund it or apply it against another balance owing.
An employer that discovers an over-deduction during the same year should generally correct its payroll records and reimburse the employee directly. However, where the overpayment remains on the T4 and has not been reimbursed, CRA credits the excess when the employee files the personal return.
The excess is not transferred to an RRSP, nor is it automatically carried forward against the employee's CPP obligation for the next calendar year. CPP contribution calculations operate on an annual basis.
Option A is also incorrect because repayment of the employee's own excessive CPP deduction is not a taxable employment benefit.
Accordingly, within the circumstances presented in the question, option D is the correct treatment.
FPII reference/topic: Retirement Planning - Canada Pension Plan; maximum pensionable earnings; employee contributions; CPP overpayments and refunds.
NEW QUESTION # 22
Spouse A, age 69, has been making regular contributions to a spousal Registered Retirement Savings Plan for spouse B, age 65. Assuming Spouse A has sufficient unused contribution room to carry forward, how long can they continue making contributions on behalf of Spouse B?
Answer: D
Explanation:
The relevant age for determining how long contributions can continue to a spousal RRSP is the age of the spouse who is the annuitant of that RRSP-Spouse B.
CRA confirms that even after a contributor has passed the age at which contributions to the contributor's own RRSP are permitted, the contributor may continue making deductible contributions to a spouse's or common- law partner's RRSP, provided the contributor has RRSP deduction room and the spouse is 71 or younger on December 31 of the contribution year.
Accordingly, Spouse A's reaching age 71 does not by itself terminate the ability to contribute to Spouse B's spousal RRSP. Since Spouse B is currently 65, contributions can continue until December 31 of the calendar year in which Spouse B turns 71, assuming Spouse A continues to have available RRSP deduction room.
The "first 60 days" concept concerns which taxation year certain RRSP contributions may be deducted against; it does not extend an RRSP's statutory contribution eligibility beyond the end of the year in which its annuitant turns 71.
Therefore, option B correctly identifies the deadline.
FPII reference/topic: Retirement Planning - spousal RRSPs; contribution age limits; contributor deduction room; age-71 rules.
NEW QUESTION # 23
Fiona's eligibility for insurance benefits is measured by her ability to perform the usual activities of daily living. What type of insurance policy does Fiona have?
Answer: C
Explanation:
Long-term care insurance is the correct classification because eligibility for benefits is commonly based on an insured person's inability to independently perform specified activities of daily living (ADLs). Typical ADLs include bathing, dressing, eating, toileting, transferring, and maintaining mobility. The Financial Consumer Agency of Canada describes long-term care insurance as coverage intended for individuals who become unable to care for themselves or who require assistance managing daily activities.
Disability insurance is fundamentally different. Its principal purpose is income replacement where illness or injury prevents the insured from performing occupational duties. Eligibility therefore normally depends on an occupational definition of disability rather than inability to perform basic ADLs. Critical illness insurance generally pays a lump-sum benefit following diagnosis of a covered condition that satisfies the policy definition. Extended health insurance reimburses eligible medical and health-related expenses that provincial plans may not fully cover.
The wording specifically connects benefit eligibility to Fiona's functional capacity in everyday living. That is the characteristic trigger associated with long-term care coverage.
FPII reference/topic: Insurance Planning - health-related insurance; long-term care coverage; activities-of- daily-living benefit triggers.
NEW QUESTION # 24
What is the maximum of the payor spouse's net income that may be deducted to fulfil child support obligations?
Answer: A
Explanation:
The applicable maximum is 50% of the payor's net amount under the ordinary support-deduction framework.
Ontario's Family Responsibility and Support Arrears Enforcement Act provides that the total amount deducted by an income source and remitted under a support deduction order generally must not exceed 50% of the net amount owed by the income source to the payor.
The "net amount" concept is important because the statutory limit does not simply mean 50% of gross salary.
Required statutory deductions are taken into account in determining the amount available for enforcement.
The support obligation itself continues to exist even where enforcement through a particular income source is limited. Arrears can accumulate and other enforcement measures may become available. There are also specific statutory exceptions applying to certain lump-sum amounts and enforcement circumstances, so the
50% figure should be understood as the standard deduction limit tested by the question rather than an absolute limit in every possible enforcement proceeding.
Accordingly, among the four alternatives, 50% correctly represents the general maximum deduction against the payor's net income source for support enforcement.
FPII reference/topic: Family Law - child-support enforcement; support deduction orders; garnishment; limits on deductions from income.
NEW QUESTION # 25
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