MODEL PERSONAL FINANCIAL
PLANNING QUESTIONNAIRE
CONFIDENTIAL
File no.:
Client name:
Client type:
Spouse name:
Questionnaire completed
on:
Updated:
Financial planner:
1
SECTION 1: PERSONAL INFORMATION
Residence and job
Client
Spouse
Mr.
Ms.
Mr.
Ms.
Address:
Since (date):
Date of birth:
Date of birth:
S.I.N.:
S.I.N.:
Home phone:
Home phone:
Office phone:
Office phone:
Cell phone:
Cell phone:
Fax:
Fax:
Email:
Email:
employer
self-employed
retired
employer
Name:
Name:
Address:
Address:
Since (date):
Since (date):
Position:
Position:
Job type:
1
2
3
1. Permanent
4
Job type:
2. Temporary
self-employed
1
2
3. Independent
3
retired
4
4. No job
Civil status
Client
Spouse
Since (date)
1
Since (date)
single
single
married/civil union
married/civil union
de facto union1
de facto union1
widowed
widowed
legally separated
legally separated
divorced
divorced
Also indicate civil status under the Civil Code of Québec.
2
Support payments
Client
paid
Spouse
received
not applicable
paid
received
not applicable
Marriage or civil union contract (append a copy to the questionnaire)
partnership of acquests
separation of property
community of property
other
n/a
Cohabitation agreement (append a copy to the questionnaire)
yes
no
not applicable
Surrender of family property rights
yes
no
not applicable
yes
no
Children
First name
not applicable
Grandchildren
Date of
birth
Annual
income
Job
Civil status
Last name
First name
Date of
birth
1)
2)
3)
Comments:
Other information
Client
smoker
State of health:
Spouse
non-smoker
1
2
1. Excellent
never smoked
3
smoker
4
non-smoker
State of health:
2. Good
3. Fair
Details:
3
1
2
4. Poor
never smoked
3
4
Professional advisors
Name
Firm and address
Phone
Fax
Email
Firm and address
Phone
Fax
Email
Lawyer
Notary
Accountant or tax
expert
Account manager
Financial security
advisor
Broker’s
representative
Liability insurance
broker or agent
Other:
For the spouse, if different:
Name
Lawyer
Notary
Accountant or tax
expert
Account manager
Financial security
advisor
Broker’s
representative
Liability insurance
broker or agent
Other:
4
SECTION 2: GOAL SUMMARY
Personal and family situation
Yes
No
Comments
Yes
No
Comments
Yes
No
Comments
Get married or enter civil union
Live in a de facto union
Get divorced
Adopt children
Have children
Separate
Other:
Financial situation
Evaluate net worth
Evaluate cost of living
Eliminate personal debts
Establish a savings strategy
Purchase a home
Review investment strategy
Help children or grandchildren pursue higher education
Other:
Tax situation
Reduce income taxes
Optimize after-tax investment income
Evaluate compensation method
Evaluate business structure
Use income-splitting strategies
Other:
5
Retirement situation
Yes
No
Comments
Yes
No
Comments
Yes
No
Comments
Retire at age
. Maintain a cost of living of
, in today’s dollars.
Evaluate options for cashing out RRSPs, RRIF,
annuities, etc.
Choose between a defined benefit pension plan and
transfer to a LIRA
Set up an individual pension plan
Other:
Situation at death
Draft or update the will
Determine life insurance needs
Maintain current cost of living for heirs for ____years
Provide additional bequests for heirs
Provide other bequests, such as to a foundation
Minimize taxes payable on death
Business: ensure continuation of the business after
death
Other:
Protection situation
Draft or update a mandate in case of incapacity
Draft or update a general power of attorney
Review personal disability protection
Review business-related disability protection
Review other personal sickness or accident protections
Review other business-related sickness or accident
protections
Other:
6
SECTION 3: FINANCE
Determine net worth
Complete Appendix A and attach copies of all relevant documents: account statements, contracts, invoices,
contracts, invoices, statements of contribution, notices of assessment, etc.
Determination of cost of living
Complete Appendix B if the client has up-to-date records of all budgetary information. Otherwise, the cost of
living can be determined based on Appendix C, after-tax income and annual savings.
Are you expecting any unusual income or expenses in the next year (e.g., trips, renovations)?
yes
no
Comments:
Are you interested in borrowing to invest?
not
yes
no
Comments:
applicable
Do you have obligations from a previous marriage or relationship?
yes
no
Comments:
Do you wish to save toward the postsecondary education of your children or grandchildren?
not
yes
no
Comments:
applicable
If so, what is the projected annual cost of education?
If so, how many years of education do you wish to finance?
Do you make contributions to an RESP?
not
yes
no
Comments:
applicable
If so, please provide the most recent account statement.
Determination of required emergency fund
The emergency fund is based on the budget or cost of living:
annual cost of living:
12 months
 3 months
7
=
Determination of current cash holdings
TFSA
Bank accounts
Certificates of deposit ( 1 yr)
T-bills
Savings bonds
Total current cash holdings
8
Unregistered
SECTION 4: TAXATION
Determination of after-tax income
Complete Appendix C using tax returns (or summaries) for the last three years.
Client
Spouse
$
$
Client
Spouse
Gross rental income:
$
$
Deductible expenses:
$
$
Net rental income before depreciation:
$
$
Capital cost allowance:
$
$
Net rental income:
$
$
Client
Spouse
Annual earnings:
Form (salary, commissions, business income, dividends):
If earnings are variable, enter possible range:
Effective (or average) tax rate
%
%
Marginal tax rate
%
%
Net capital losses from prior years
Taxable capital gains declared in last 3 years:
Year:
Amount:
Have you sold any property since the beginning of the year?
yes
no
If so, complete the following chart.
Description
Year of
acquisition
Quantity
Net proceeds
of disposition
ACB
UCC
1)
2)
3)

In most cases, it is preferable to confirm this information with the tax authorities.
9
Gain or loss
Recapture of
depreciation
Has the $800,000 capital gains deduction for the sale of CCPC shares been used? Eligible farming property?
Eligible fishing property?
yes
no
What amount?
What tax shelters do you use?
Does your situation allow for the use of income-splitting techniques?
Do you use all available deductions and tax credits? Do you declare all of your income?
Do you have foreign investment property with a total cost of over $100,000?
yes
no
Comments:
If so, please ensure that for every year that you were in this situation, the appropriate declarations were made
(federal income declaration and federal form T1135).
10
Have you filed an election with regard to a property owned on February 22, 1994?
yes
no
If so, complete the following table:
Description
Quantity
1)
2)
3)
4)
5)
Other:
11
Amount of election ($)
SECTION 5: RETIREMENT
Client
yes
no
Spouse
yes
no
Are you eligible for the Old Age Security pension (OAS)?
Are you eligible for the Québec Pension Plan or the Canada Pension Plan
(append a statement of contributions)?
Do you belong to a registered pension plan (RPP), a supplemental pension
plan, a stock option plan, etc.?
If so, please append a copy of the most recent statement of participation and
all documentation concerning the plan (brochures, regulations, etc.) and
complete note 15 in the personal balance sheet.
Do you belong to a group RRSP or group DPSP offered by your employer?
If so, append a copy of the most recent statement of participation and
complete note 14 in the personal balance sheet.
Do you always contribute the annual maximum to your RRSP* or spousal
RRSP?
When do you make your annual RRSP or spouse RRSP contribution?
End of year
Beginning of year
Systematic savings program
Additional information about the RRSP:
Allowable contribution – current year
Unused contributions
Unused deductions
Overcontributions
Obtain Appendix 7 and the most recent federal notice of assessment
Other information:
The data and assumptions required to produce financial projections for retirement are presented in Appendix G.

Details about the investments held inside the RRSP are provided in Section 3 – Finances, of this question, in the personal
balance sheet.
12
SECTION 6: LEGAL ASPECTS AND ESTATES2
Client
yes
no
Spouse
N/A
yes
no
N/A
Do you have a will?
If so, append a copy and complete note 23 of the personal balance
sheet.
Is there a “last survivor” clause in your marriage or civil union
contract?
If you have no will, complete note 23 in the personal balance sheet and
identify the legal heirs in the event of an intestate death.
Does your will still reflect your last wishes?
Is the will structured to reduce taxes payable on death?
Is the will structured to reduce income taxes for the heirs in the years
following the death?
Do you want to leave a bequest to a charity?
Have you made funeral pre-arrangements?
Provide an estimate of your death-related expenses?
Do you have a mandate in case of incapacity?
Do you have a cohabitation agreement?
Do you have a general power of attorney?
Do you have a shareholders’ or partners’ agreement?
Comments:
2
For this section, the financial planner should complete the estate balance sheet (Appendix D) and calculate the cash position
of the estate (Appendix E).
13
SECTION 7: INVESTMENTS
Client
%
Spouse
%
100%
100%
100%
100%
Determination of investor profile3
Cash securities
Fixed-income securities
Growth securities
Current asset allocation4
Cash securities
Fixed-income securities
Growth securities
yes
no
N/A
yes
no
N/A
yes
no
N/A
yes
no
N/A
yes
no
N/A
yes
no
N/A
yes
no
N/A
yes
no
N/A
Is the investment portfolio diversified?
Is the investment portfolio structured to reduce income taxes?
If the “growth” portion of the investment portfolio protected against a
stock market crash?
Is the liquidity level of the RRIF high enough for the chosen payout
schedule?
Comments:
3
4
The investor profile is general determined using a questionnaire such as the one found in Appendix F.
A more in-depth analysis can be carried out using the chart found in Appendix H.
14
SECTION 8: INSURANCE
Client
yes
no
Spouse
N/A
yes
no
Do you have life insurance ?
Do you have disability insurance *?
Do you have critical illness insurance *? Long-term care? Access to
care?
Are your loans covered by life insurance with the lending institution?
Are your loans covered by disability or critical illness insurance with
the lending institution?
Does a corporation hold insurance on your life?
Are your insurance contracts sufficient to meet your objectives (complete Appendix I)?
Are the types of insurance contracts you have well-suited to your situation?
Comments:

When the client has insurance coverage, the financial planner should obtain a recent statement, find out about the
conditions and provisions of the contract, and complete note 22 in the personal balance sheet.
15
N/A
APPENDIX A
Personal balance sheet as at
Client ($)
ASSETS
Cash and near-cash assets
Bank accounts (note 3)
Life insurance cash surrender value (note 4)
Non-registered investments (note 5)
Tax-free savings account (note 6)
Advances receivable (note 7)
Other:
Total cash and near-cash assets
Personal assets
Principal residence (note 8)
Secondary residence (note 9)
Automobiles (note 10)
Antiques, works of art, jewellery, collections (note 11)
Other:
Total personal assets
Income-producing assets
Equity ownership in a private corporation or partnership (note 12)
Rental property (note 13)
Other:
Total income-producing assets
Deffered taxation plans
RRSP or RRIF (note 14)
Registered Pension Plan (note 15)
LIRA or LIF (note 16)
RESP or RDSP (note 17)
Other assets:
Total deffered taxation plans
TOTAL ASSETS
16
Spouse ($)
Total ($)
Client ($)
LIABILITIES
Accounts payable (note 18)
Unpaid credit card balances
Credit purchases
Taxes payable
Other:
Total accounts payable
Personal loans (note 19)
Bank overdraft
Line of credit
Car
RRSP
Investments
Advances received from a private corporation
Other:
Total personal loans
Mortgage loans (note 20)
Principal residence
Secondary residence
Rental property
Other:
Total mortgage loans
TOTAL LIABILITIES
NET WORTH
17
Spouse ($)
Total ($)
Notes to the personal balance sheet
NOTE 1: Personal, professional and family situation
NOTE 2: Accounting conventions
Assets and liabilities are evaluated at their estimated current value.
NOTE 3: Bank accounts
Financial institution
Type of account
Balance ($)
1)
2)
3)
Total
NOTE 4: Life insurance cash surrender value
Type of contract
Cash surrender value ($)
Comments
1)
2)
3)
Total
NOTE 5: Non-registered investments
Liquid securities
Savings bonds
Issuer
Series
Interest rate
Maturity
Accrued value
($)
Face value ($)
1)
2)
Total
Term deposits or guaranteed investment certificates maturing in less than 1 year
Financial institution
Date of deposit
Date of maturity
Interest rate
1)
2)
3)
Total
18
Accrued value ($)
Bonds maturing in less than 1 year
Issuer
Date of
acquisition
Cost of
acquisition ($)
Interest rate
Maturity
Market value ($)
1)
2)
3)
Total
Money market mutual funds
Date of
Description
acquisition
MER
ACB ($)
Number of
units
Market value
($)
Total ($)
1)
2)
3)
Total:
Other liquid securities
Total:
Fixed-income securities
Term deposits or guaranteed investment certificates
Financial institution
Date of deposit
Date of maturity
Interest rate
Accrued value ($)
1)
2)
3)
Total:
Bonds
Issuer
Date of
acquisition
Cost of
acquisition ($)
Interest rate
Maturity
Market value ($)
1)
2)
3)
Total:
19
Stripped bonds
Issuer
Date of acquisition
Cost of acquisition
($)
Rate of return
Market value ($)
1)
2)
Total
Note: Also indicate interest declared each year on income tax return.
Redeemable preferred shares
Description
Date of
acquisition
ACB ($)
Rate of
return
Maturity
Quantity
Market
value ($)
Total ($)
1)
2)
3)
Total:
Fixed income mutual funds
Description
Date of
acquisition
ACB ($)
Rate of return
Maturity
Quantity
Market value
($)
1)
2)
3)
Total:
Other fixed income securities
Total:
Growth securities
Common shares
Description
Date of
acquisition
ACB ($)
Annual
dividend
Quantity
Market value
($)
1)
2)
3)
4)
Total
20
Total ($)
Perpetual preferred shares
Date of
Description
acquisition
ACB ($)
Rate of return
Quantity
Market value
($)
Total ($)
1)
2)
3)
4)
Total
Growth securities mutual funds
Date of
Description
acquisition
MER
ACB ($)
Number of
units
Market value
($)
Total ($)
1)
2)
3)
4)
Total
Income trusts
Description
Date of
acquisition
ACB ($)
Annual
distributions
($)
Quantity
Market value
($)
Total ($)
1)
2)
3)
Total
Note: The ACB should be adjusted downward each year to reflect capital distributions.
Other growth securities
Total:

Management expense ratio
21
NOTE 6: Tax-free savings account (TFSA)
Liquid securities
Savings bonds
Issuer
Series
Interest rate
Maturity
Accrued value
($)
Face value ($)
1)
2)
Total
Term deposits or guaranteed investment certificates maturing in less than 1 year
Financial institution
Date of deposit
Date of maturity
Interest rate
Accrued value ($)
1)
2)
3)
Total
Bonds maturing in less than 1 year
Issuer
Date of
acquisition
Cost of
acquisition ($)
Interest rate
Maturity
Market value ($)
1)
2)
3)
Total
Money market mutual funds
Date of
Description
acquisition
MER
ACB ($)
Number of
units
Market value
($)
Total ($)
1)
2)
3)
Total:
Other liquid securities
Total:
22
Fixed-income securities
Term deposits or guaranteed investment certificates
Financial institution
Date of deposit
Date of maturity
Interest rate
Accrued value ($)
1)
2)
3)
Total:
Bonds
Date of
acquisition
Issuer
Cost of
acquisition ($)
Interest rate
Maturity
Market value ($)
1)
2)
3)
Total:
Stripped bonds
Issuer
Date of acquisition
Cost of acquisition
($)
Rate of return
Market value ($)
1)
2)
Total
Note: Also indicate interest declared each year on income tax return.
Redeemable preferred shares
Description
Date of
acquisition
ACB ($)
Rate of
return
Maturity
Quantity
Market
value ($)
Total ($)
1)
2)
3)
Total:
Fixed income mutual funds
Description
Date of
acquisition
ACB ($)
Rate of return
Maturity
Quantity
Market value
($)
1)
2)
3)
Total:
23
Other fixed income securities
Total:
Growth securities
Common shares
Description
Date of
acquisition
ACB ($)
Annual
dividend
Quantity
Market value
($)
Total ($)
1)
2)
3)
4)
Total
Perpetual preferred shares
Date of
Description
acquisition
ACB ($)
Rate of return
Quantity
Market value
($)
Total ($)
1)
2)
3)
4)
Total
Growth securities mutual funds
Date of
Description
acquisition
MER
ACB ($)
Number of
units
Market value
($)
1)
2)
3)
4)
Total
24
Total ($)
Income trusts
Description
Date of
acquisition
ACB ($)
Annual
distributions
($)
Market value
($)
Quantity
Total ($)
1)
2)
3)
Total
Note: The ACB should be adjusted downward each year to reflect capital distributions.
Other growth securities
Total:
Total TFSA:
NOTE 7: Advances receivable
NOTE 8: Principal residence
Address
Year of acquisition
Price paid ($)
Municipal
evaluation ($)
Market value ($)
Note: Include the price paid for major improvements or renovations. If the market value differs from the
municipal evaluation, identify the evaluation method.
NOTE 9: Secondary residence
Address
Year of acquisition
Price paid ($)
Municipal
evaluation ($)
Market value ($)
Note: Include the price paid for major improvements or renovations. If the market value differs from the
municipal evaluation, identify the evaluation method.
NOTE 10: Cars
Model
Year
Cost of acquisition ($)
1)
2)
Total
25
Market value ($)
NOTE 11: Antiques, works of art, jewellery, collections
Description
ACB ($)
Market value ($)
1)
2)
Total
Note: Specify how market value was established.
NOTE 12: Equity ownership in a private corporation or partnership
Description
% ownership
ACB ($)
Market value ($)
1)
2)
Total
Note: Identify the evaluation method. The company’s financial statements can be.
NOTE 13: Rental property
Description
Address
Date of
acquisition
ACB ($)
Municipal
evaluation ($)
UCC ($)
Market value
($)
1)
Land portion
n/a
Land portion
n/a
2)
Total
NOTE 14: Registered Retirement Savings Plan or Registered Retirement Income Fund
Liquid securities
Savings bonds
Issuer
Series
Interest rate
Maturity
Face value ($)
1)
2)
Total
26
Accrued value
($)
Term deposits or guaranteed investment certificates maturing in less than 1 year
Financial institution
Date of deposit
Date of maturity
Interest rate
Accrued value ($)
1)
2)
3)
Total
Bonds maturing in less than 1 year
Date of
Issuer
acquisition
Cost of
acquisition ($)
Interest rate
Maturity
Market value ($)
1)
2)
3)
Total
Money market mutual funds
Date of
Description
acquisition
MER
ACB ($)
Number of
units
Market value
($)
Total ($)
1)
2)
Total:
Other liquid securities
Total:
Fixed-income securities
Term deposits or guaranteed investment certificates
Financial institution
Date of deposit
Date of maturity
Interest rate
Accrued value ($)
1)
2)
3)
Total:
Bonds
Issuer
Date of
acquisition
Cost of
acquisition ($)
Interest rate
Maturity
Market value ($)
1)
2)
Total:
27
Stripped bonds
Issuer
Date of acquisition
Cost of acquisition
($)
Rate of return
Market value ($)
1)
2)
Total
Note: Also indicate interest declared each year on income tax return.
Redeemable preferred shares
Description
Date of
acquisition
ACB ($)
Rate of
return
Maturity
Quantity
Market
value ($)
Total ($)
1)
2)
3)
Total:
Fixed income mutual funds
Description
Date of
acquisition
ACB ($)
Rate of return
Maturity
Quantity
Market value
($)
1)
2)
3)
Total:
Other fixed income securities
Total:
Growth securities
Common shares
Description
Date of
acquisition
ACB ($)
Annual
dividend
Quantity
Market value
($)
1)
2)
3)
4)
Total
28
Total ($)
Perpetual preferred shares
Date of
Description
acquisition
ACB ($)
Rate of return
Quantity
Market value
($)
Total ($)
1)
2)
3)
4)
Total
Growth securities mutual funds
Description
Date of
acquisition
MER
ACB ($)
Number of
units
Market value
($)
Total ($)
1)
2)
3)
4)
Total
Income trusts
Description
Date of
acquisition
ACB ($)
Annual
distributions
($)
Quantity
Market value
($)
Total ($)
1)
2)
Total
Note: The ACB should be adjusted downward each year to reflect capital distributions.
Other growth securities
Total:
Total RRSP or RRIF:
29
NOTE 15: Registered Pension Plan
Defined benefits
Participant
Earnings subject
ContriPension accumulation
to contributions
bution rate
rate
(S)
Current value
($)
Other features
Earnings subject
to contributions
(S)
Market value
($)
Other features
1)
2)
Defined contribution
Participant
Contribution rate
Employer
contribution rate
1)
Investment characteristics:
2)
Investment characteristics:
NOTE 16: Locked-In Retirement Account or Life Income Fund
Liquid securities
Savings bonds
Issuer
Series
Interest rate
Maturity
Accrued value
($)
Face value ($)
1)
2)
Total
Term deposits or guaranteed investment certificates maturing in less than 1 year
Financial institution
Date of deposit
Date of maturity
Interest rate
1)
2)
3)
Total
30
Accrued value ($)
Bonds maturing in less than 1 year
Issuer
Date of
acquisition
Cost of
acquisition ($)
Interest rate
Maturity
Market value ($)
1)
2)
3)
Total
Money market mutual funds
Date of
Description
acquisition
MER
ACB ($)
Number of
units
Market value
($)
Total ($)
1)
2)
3)
Total:
Other liquid securities
Total:
Fixed-income securities
Term deposits or guaranteed investment certificates
Financial institution
Date of deposit
Date of maturity
Interest rate
Accrued value ($)
1)
2)
3)
Total:
Bonds
Issuer
Date of
acquisition
Cost of
acquisition ($)
Interest rate
Maturity
Market value ($)
1)
2)
3)
Total:
31
Stripped bonds
Issuer
Date of acquisition
Cost of acquisition
($)
Rate of return
Market value ($)
1)
2)
Total
Note: Also indicate interest declared each year on income tax return.
Redeemable preferred shares
Description
Date of
acquisition
ACB ($)
Rate of
return
Maturity
Quantity
Market
value ($)
Total ($)
1)
2)
3)
Total:
Fixed income mutual funds
Description
Date of
acquisition
ACB ($)
Rate of return
Maturity
Quantity
Market value
($)
1)
2)
3)
Total:
Other fixed income securities
Total:
Growth securities
Common shares
Description
Date of
acquisition
ACB ($)
Annual
dividend
Quantity
Market value
($)
1)
2)
3)
4)
Total
32
Total ($)
Perpetual preferred shares
Date of
Description
acquisition
ACB ($)
Rate of return
Quantity
Market value
($)
Total ($)
1)
2)
3)
4)
Total
Growth securities mutual funds
Description
Date of
acquisition
MER
ACB ($)
Number of
units
Market value
($)
Total ($)
1)
2)
3)
4)
Total
Income trusts
Description
Date of
acquisition
ACB ($)
Annual
distributions
($)
Quantity
Market value
($)
Total ($)
1)
2)
3)
Total
Note: The ACB should be adjusted downward each year to reflect capital distributions.
Other growth securities
Total:
Total LIRA or LIF:
33
NOTE 17: Registered Education Savings Plan or Registered Disability Savings Plan
Note: The RESP should only appear in the subscriber’s personal balance sheet and the value is equal to
contributions made. The total value of the RDSP should appear in the beneficiary’s personal balance
sheet.
NOTE 18: Accounts payable
Description
Maturity date
Interest rate
Amount ($)
1)
2)
3)
4)
Total
NOTE 19: Personal loans
Description
Date of loan
Date of maturity
Payments ($)
Interest rate
Original amount
($)
Balance ($)
1)
2)
3)
4)
Total
NOTE 20: Mortgage loans
Lender
Description
Date of
loan
Date of
maturity
Payments
($)
Amortization
Frequency
Interest rate
Original
Balance ($)
amount ($)
1)
2)
3)
Total
NOTE 21: Investor profile
Asset category
Registered
investments ($)
%
Non-registered
investments ($)
%
Combined
(%)
Profile (%)
Gap
(%)
Liquid securities
Fixed-income
securities
Growth securities
Total
NOTE: Sums invested short-term for a specific short- or medium-term purchase are excluded, as is money set aside for the
emergency fund.
34
NOTE 22: Life, disability and other insurance contracts
a) Life insurance
Underwriting
year
Issuer
Type of
contract
Owner
Adherent
Beneficiary
($)
Insured
Annual
premium ($)
Cash
surrender
value ($)
Adjusted cost Capitalization
Death benefit
base ($)
fund
Payer
Comments:
b) Disability insurance
Issuer
Underwriting
year
Premium ($)
Waiting period
Monthly income
($)
% indexation
Profession
protected for
(years)
Other features
24
Comments:
c) Critical illness, long-term care insurance and other insurance coverage
Issuer
Comments:
Underwriting year
Premium ($)
Insured capital ($)
Illnesses covered
NOTE 23: Legal documents
NOTE 24: Tax information
NOTE 25: Contractual commitments
36
NOTE 26: Contingencies
NOTE 27: Employee stock program
NOTE 28: Events subsequent to the balance sheet date
NOTE 29: Foreign currency conversion
37
APPENDIX B
Cost of living (budget)
Name:
Projected budget for the year
EXPENSES
Client
Food
Groceries
Restaurant
Subtotal
Accommodations
Rent, mortgage payment
Maintenance and repairs
Insurance premiums (home and contents)
Property and school taxes
Heat, electricity, water
Phone, cable, internet
Other
Subtotal
Household operations
Domestic help, maintenance
Child care
Animal expenses
Cleaning products
Yard work
Other
Subtotal
Furnishings and equipment
Clothing (purchases, cleaning)
38
Spouse
Total
Transportation costs
Automobile purchase (cash)
Loan payments
Insurance, permits
Maintenance and repairs
Gas and oil
Parking
Public transit
Subtotal
Health care
Health, dental insurance premiums, etc.
Non-refundable medical expenses
Subtotal
Personal care
Hair care, aesthetician, beauty products
Supplies and other services
Subtotal
Leisure and entertainment
Pleasure vehicles
Sports, camping
Shows, outings
Books, newspapers, CDs, DVDs, photos, etc.
Collections, crafts
Vacations, trips
Other
Subtotal
Education
Tuition
Books, supplies
Other
Subtotal
39
Contributions, donations, gifts
Tobacco and alcohol
Debt repayment (other than car and mortgage)
Income taxes (federal and provincial)
Financial security
Life insurance
Disability insurance (income insurance)
Accident insurance, liability insurance, etc.
Drug insurance
Pension plan contributions
Other
Subtotal
Miscellaneous expenses
Financial fees
Professional fees
Union or professional dues
Lottery tickets
Charitable donations
Other
Subtotal
TOTAL EXPENSES
40
APPENDIX C
Determination of after-tax income and cost of living
Year: ____________
NAME: _______________________________________
Client
$
SOURCES OF INCOME
Employment income
Employment or self-employment income (net)
Rental income
Investment income
Support payments received (paid)
Annuities and other pensions
Other income
TOTAL GROSS INCOME
INCOME TAXES AND CONTRIBUTIONS
QPP or CPP contributions
Employment insurance contributions
QPIP contributions
Pension plan contributions
Provincial taxes
Federal taxes
TOTAL TAXES AND CONTRIBUTIONS
INCOME AVAILABLE
LESS:
NON-RRSP SAVINGS
RRSP CONTRIBUTIONS
CHANGE IN CASH AND DEBT5
COST OF LIVING
5
The change in debt equals the difference in the balance of personal loans.
41
Spouse
$
Total
$
APPENDIX D
Estate statement as at
Death of the
client
$
Net worth according to balance sheet
Plus:
Life insurance6
Insured liabilities
Other:
Sub-total:
Less:
Life insurance cash surrender value
Death-related expenses
Taxes payable on death (note 1)
Specific bequests
Charitable donations
Other
Subtotal:
ESTATE ASSETS
Plus: Sums received by heirs as beneficiaries
Less: Income taxes assumed by heirs
Value transferred to universal heirs
6
Life insurance proceeds should be payable to the estate.
42
Death of the
spouse
$
Simultaneous
death
$
NOTE 1: Taxes payable on death 
In this note, the financial planner should provide detailed calculations showing how the amount of taxes payable
on death was established.
a) Death of the client
Income (loss)
($)
Description
Capital gain (loss) ($)
TOTAL:
X 50% =
Taxable income
Tax rate:
Income taxes:
Charitable donations:
x 48.22%
Tax credit for charitable donations:
Income taxes payable on death:
b) Death of the spouse
Income (loss)
($)
Description
Capital gain (loss) ($)
TOTAL:
X 50% =
Taxable income
Tax rate:
Income taxes:
Charitable donations:
x 48.22%
Tax credit for charitable donations:
Income taxes payable on death:

It is often best to use the marginal tax rate, but the client’s situation may dictate the use of a lower rate.
43
c) Simultaneous death
Income (loss)
($)
Description
Capital gain (loss) ($)
TOTAL:
X 50% =
Taxable income
Tax rate:
Income taxes:
Charitable donations:
x 48.22%
Tax credit for charitable donations:
Income taxes payable on death:
44
APPENDIX E
Cash position of the estate as at
Client
$
Spouse
$
Simultaneous
death
$
Cash and near-cash assets according to personal
balance sheet
Plus:
Life insurance
Registered retirement savings7
Other:
Subtotal:
Less:
Uninsured liabilities, according to personal balance
sheet8
Life insurance cash surrender value
Death-related expenses
Taxes payable on death
Specific bequests of cash or near-cash securities
Charitable donations of cash or near-cash securities
Other:
CASH SURPLUS (DEFICIT)
Plus: Sums received by heirs as beneficiaries
Less: Income taxes assumed by heirs
Cash available for universal heirs
7
8
If the registered assets are not left to the spouse and are instead included in the calculation of taxes payable on death in the
estate statement.
It is recommended that all liabilities recorded in the personal balance sheet be included here, even though some debts may
not automatically become payable on death (e.g., mortgage that is not insured with the lending institution). The financial
planner can mention these issues in the analysis.
45
APPENDIX F
Risk tolerance questionnaire
Name:
1. In general, how would your best friend describe you as a risk taker?
a) A real gambler
b) Willing to take risks after completing adequate research
c) Cautious
d) A real risk avoider
2. You are on a TV game show and can choose one of the following. Which would you take?
a) $1,000 in cash
b) 50% chance at winning $5,000
c) A 25% chance at winning $10,000
d) A 5% chance at winning $100,000
3. You have just finished saving for a “once-in-a-lifetime” vacation. Three weeks before you plan to leave, you
lose your job. You would:
a) Cancel the vacation
b) Take a much more modest vacation
c) Go as scheduled, reasoning that you need the time to prepare for a job search
d) Extend your vacation, because this might be your last chance to go first-class
4. If you unexpectedly received $20,000 to invest, what would you do?
a) Deposit it in a bank account, money market account, or an insured CD?
b) Invest it in safe high-quality bonds or bond mutual funds
c) Invest it in stocks or stock mutual funds
5. In terms of experience, how comfortable are you investing in stocks or stock mutual funds?
a) Not at all comfortable
b) Somewhat comfortable
c) Very comfortable
6. When you think of the word “risk,” which of the following words comes to mind first?
a) Loss
b) Uncertainty
c) Opportunity
d) Thrill
7. Some experts are predicting prices of assets such as gold, jewels, collectibles, and real estate (hard assets) to
increase in value; bond prices may fall, however, experts tend to agree that government bonds are relatively
safe. Most of your investment assets are now in high interest government bonds. What would you do?
a) Hold the bonds
b) Sell the bonds, put half the proceeds into money market accounts, and the other half into hard assets
c) Sell the bonds and put the total proceeds into hard assets
d) Sell the bonds, put all the money into hard assets, and borrow additional money to buy more
46
8. Given the best and worst case returns of the four investment choices below, which would you prefer?
a) $200 gain best case; $0 gain/loss worst case
b) $800 gain best case; $200 loss worst case
c) $2,600 gain best case; $800 loss worst case
d) $4,800 gain best case; $2,400 loss worst case
9. In addition to whatever you own, you have been given $1,000. You are now asked to choose between:
a) A sure gain of $500
b) A 50% chance to gain $1,000 and a 50% chance to gain nothing.
10. In addition to whatever you own, you have been given $2,000. You are now asked to choose between:
a) A sure loss of $500
b) A 50% chance to lose $1,000 and a 50% chance to lose nothing
11. Suppose a relative left you an inheritance of $100,000, stipulating in the will that you invest ALL the money
in ONE of the following choices. Which one would you select?
a) A savings account or money market mutual fund
b) A mutual fund that owns stocks and bonds
c) A portfolio of 15 common stocks
d) Commodities like gold, silver, and oil
12. If you had to invest $20,000, which of the following investment choices would you find most appealing?
a) 60% in low-risk investments 30% in medium-risk investments 10% in high-risk investments
b) 30% in low-risk investments 40% in medium-risk investments 30% in high-risk investments
c) 10% in low-risk investments 40% in medium-risk investments 50% in high-risk investments
13. Your trusted friend and neighbour, an experienced geologist, is putting together a group of investors to fund
an exploratory gold mining venture. The venture could pay back 50 to 100 times the investment if successful.
If the mine is a bust, the entire investment is worthless. Your friend estimates the chance of success is only
20%. If you had the money, how much would you invest?
a) Nothing
b) One month’s salary
c) Three months’ salary
d) Six months’ salary
47
SCORING
1. a = 4; b = 3; c = 2; d = 1
6. a = 1; b = 2; c = 3; d = 4
10. a = 1; b = 3
2. a = 1; b = 2; c = 3; d = 4
7. a = 1; b = 2; c = 3; d = 4
11. a = 1; b = 2; c = 3; d = 4
3. a = 1; b = 2; c = 3; d = 4
8. a = 1; b = 2; c = 3; d = 4
12. a = 1; b = 2; c = 3
4. a = 1; b = 2; c = 3
9. a = 1; b = 3
13. a = 1; b = 2; c = 3; d = 4
5. a = 1; b = 2; c = 3
According to John Grable: “Average and mean scores were relatively constant over time, ranging from 25 to 27
after addition.” Even though it is not an official scoring system, it appears that the following scores are reliable
with regard to risk tolerance:
18 or less
19 to 22
23 to 28
29 to 32
33 and over
=
=
=
=
=
Low
Below average
Average or moderate
Above average
High
Source: J.E. Grable and R. H. Lyton, “Financial Risk Tolerance Revisited: The Development of a Risk Assessment
Instrument,” (1999) 8 Financial Services Review 163. Reproduced with permission.
For the purposes of applying John Grable’s risk tolerance measure, the following chart was developed by the
IQPF to convert the score to a target asset allocation:
Score
Fixed income
Growth shares
10 or under
11 to 15
16 to 18
19 to 22
23 to 28
29 to 32
33 and over
100%
80%
70%
60%
50%
40%
30%
0%
20%
30%
40%
50%
60%
70%
48
APPENDIX G
Data to collect to make financial projections for retirement using software.
Account type
Owner
Contribution rights
ACB
FMV
Return
RRSP
Client
$
$
$
%
RRSP
Spouse
$
$
$
%
TFSA
Client
$
$
$
%
TFSA
Spouse
$
$
$
%
Non-registered
Client
$
$
$
%
Non-registered
Spouse
$
$
$
%
Defined contribution RPP
(or LIRA)
Client
$
$
$
%
Defined contribution RPP
(or LIRA)
Spouse
$
$
$
%
Income type
Owner
Annual
income
Indexation
before payment
Beginning
of payments
Subsequent
indexation
End of
payments
Salary
Client
$
%
%
Salary
Spouse
$
%
%
QPP
Client
$
%
%
QPP
Spouse
$
%
%
OAS
Client
$
%
%
OAS
Spouse
$
%
%
RPP
Client
$
%
%
RPP
Spouse
$
%
%
Rental
Client
$
%
%
Rental
Spouse
$
%
%
Dividend
Client
$
%
%
Dividend
Spouse
$
%
%
Non-taxable
Client
$
%
%
Non-taxable
Spouse
$
%
%
Type of expenses
Annual amount
Indexation
before
beginning
Beginning
Subsequent
indexation
Cost of living
$
%
%
Mortgage
$
%
%
Education savings
$
%
%
$
%
%
$
%
%
$
%
%
$
%
%
$
%
%
49
End
APPENDIX H
Asset allocation analysis chart
Name:
UNREGISTERED INVESTMENTS
Total value
$
Fixed-income securities
Short term
Medium term
Long term
Total
Growth shares
Canadian
International
Total
40
Speculative securities
Canadian
International
Total
Income-producing assets
Shares of private corporation
Real property
Other
Total
Total
9
High, medium, low
REGISTERED INVESTMENTS
After-tax return
%
$
Total value
$
TOTAL INVESTMENTS
Return
%
$
Combined
total
Allocation
Profile
$
%
%
Risk9
Liquidity
APPENDIX I
Estate planning analysis
Capital required at death
Death of the
client
Family cost of living
Death of the
spouse
$
$
Expenses of the deceased
$
$
Payments for mortgages repaid at death
$
$
Cost of living after the death
$
$
Survivor’s income after taxes and savings
$
$
QPP survivor’s pension after taxes
$
$
Other income
$
$
Total income available after the death
$
$
Annual surplus or shortfall
(Income available – cost of living after the death)
$
$
Capital required1
$
$
Cash available for universal heirs
$
$
Current value of QPP orphan’s pension
$
$
Non-liquid assets expected to be sold
$
$
Less:
Income available after the death
Less:
Additional life insurance required
1
Capital required to achieved net indexed annual income
BGN (the income must be available at the beginning of the period)
FV = $0
PMT = Annual shortfall
i = After-tax rate of return on investments corrected for inflation: { ( 1 + after-tax return) / (1 + expected
inflation rate) } – 1
n = Number of years when survivors will need the income.
PV = Capital required
51
APPENDIX J
Professional service contract (template)
City, date
To
Address
Subject: Financial planning
Ref. no.: File No.____________
Dear Mr./Ms. Client,
Further to our recent meeting, we would like to offer you our services to prepare an integrated personal financial plan, develop
an action plan and formulate recommendations that will allow you to meet the financial goals we discussed together.
We are authorized to act in the following fields: financial planning, individual insurance, group savings, (specify other
disciplines). We also offer the following financial products and services: financial planning, life and disability insurance,
mutual funds (specify).
In particular, our services include an examination of the following:
 Personal and family situation
 Financial situation
 Tax situation
 Retirement situation
 Situation at death
 Protection situation
For each of the areas mentioned above, we take into consideration the financial, accounting and tax consequences, both in the
analysis of the current situation and in the formulation of recommendations.
Consideration
For these services, you agree to pay us the sum of ______________ dollars for every hour of work undertaken in relation to
this contract, which we estimate to be approximately __________ hours.
The appropriate taxes (GST, QST), along with any fees and expenses incurred, will be added to this price.
You agree to make a down payment of __________ dollars, deductible from the total sum invoiced, the balance of which will
be due thirty (30) days after invoicing. Interest of ________% will be levied on any amount unpaid after 30 days.
The present contract may be rescinded at any time. If you rescind the contract, you agree to pay for any hours worked and
any expenses incurred up to the date of revocation.
52
Charges and conditions
As your financial planners, we agree to provide you with a written report that covers all of the items listed below, including
analysis charts and recommendations where relevant.
We will inform you of the progress of our work and submit the final report to you in about _________________________.
We will then invite you to a meeting at which we will explain our analysis and our recommendations. If additional work is
required, you will be informed and additional fees may be charged.
You should understand that the report provided within the scope of this contract may require regular updating. The fees for
periodically updating the file can be agreed upon at a later date.
You agree to respond to all questions and to provide the documents required for the execution of the contract, whether they
are held by you or by third parties. To this end, you agree to immediately sign letters authorizing us to obtain information
directly from third parties. The information obtained from these third parties will remain confidential at all times and will not
be used for any other purposes
You understand that our responsibility is limited by access to the documents provided and to their content. The
recommendations are based on assumptions and must be updated from time to time to take account of your social and family
situation, changes in tax and other laws, as well as developments in the economy and fluctuating markets.
Should the implementation of the recommendations in the report require the services of specialists, our co-ordination and
integration fees will be charged over and above their fees.
Sincerely,
(Signature)
Name of financial planner (BLOCK LETTERS)
Name of financial institution or firm
I,
first and last name of client
outlined.
Signed at
, accept the terms of the present service contract and agree to meet all the conditions
, this
th
day of
(month, year)
(Signature)
Client’s name (BLOCK LETTERS)
Note: If remuneration is to be based on commissions on financial products sold, this must be clearly indicated.
In such a case, it is recommended that an alternate type of remuneration, such as an hourly rate, be provided, in
case the contract is rescinded.
53