Investment Planning Textbook

This textbook is used for Investment Planning Courses in Personal Financial Planning Programs of Community Colleges and Universities. You will also find it valuable in your personal studies in preparation for writing the Professional Exams.

The Textbook includes 342 pages addressing the components of Investment Planning as defined in the CFP® Body of Knowledge and the PFP® Professional Competency Profiles.

Investment Planning

Introduction to Investment Planning
Guaranteed, Interest-Producing Investments
Bonds & Debentures
Common & Preferred Shares
Analysis & Derivatives
Income Trusts
Tax-Free Savings Accounts
Investment Theory & Portfolio Design
Investment Funds

INVESTMENT PLANNING

The Textbook will guide you through current and up-to-date concepts, definitions and strategies required to address client’s needs with examples as to how they apply to client situations that you would find on the examinations.

Concept

In order to preserve cash, an income trust may make a distribution of units of the trust. This distribution can consist of business income, interest income, rental income, dividends, capital gains and a return of capital. Even though no cash is received, the various types of income are taxable, and the return of capital reduces the investor’s adjusted cost base (ACB) for the trust units. However, the adjusted cost base (ACB) of the new trust units is the amount of income associated with the distribution.

Definition

A non-cash distribution is an allocation of income and/or return of capital that is achieved by a distribution of units of the trust.

Example

Conner purchased 1,000 units of the Beta REIT for $10,000. During the year, he received a distribution of 120 units, which consisted of business income of $500 and a return of capital of $800. Connor must report taxable business income of $500. At the end of the year, Conner has 1,120 units, calculated as (1,000 original units + 120 units distributed).

The adjusted cost base (ACB) of Conner’s 1,120 units is $9,700, calculated as:

(original purchase price of $10,000 + taxable distribution of $500 – return of capital of $800).

The Personal Financial Planner's Manual™

The Textbook is included as one of the sections of The Personal Financial Planner's Manual™.

The Personal Financial Planner's Manual

Shipping

We ship the Textbook by Canada Post to the mailing address that you give us.

Trade Mark

The Personal Financial Planner's Manual™ is a trade mark of D. R. Gobeil & Associates Ltd.