CFP + CFA Skills

 

Retirement Planning & Post-Exit Investment Management for Business Owner Clients

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The Apex CFP and CFA Skills cover the personal financial lifecycle of a Canadian business owner from the pre-exit planning stage through the post-exit investment period. They are designed to work in sequence: the CFP Skill translates a business valuation into after-tax personal wealth and projects whether it is sufficient to fund the owner's retirement, while the CFA Skill designs the Investment Policy Statement and asset allocation framework for deploying the proceeds once the sale closes. Both skills are sold exclusively to licensed professionals — CFP designates in good standing with FP Canada, and CIRO-registered Portfolio Managers or Investment Advisors respectively.

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CFP Skill — Retirement & Personal Financial Planning

After-tax exit proceeds: The skill models gross sale proceeds through the full Canadian tax stack — adjusted cost base of shares, capital gain, LCGE exemption (up to $1,250,000 per individual, coordinated with the CPA Skill's LCGE multiplication analysis), taxable capital gain at the 2/3 inclusion rate for amounts above the exemption, and provincial marginal tax — producing a net after-tax proceeds figure across three scenarios: no LCGE, owner LCGE only, and full family LCGE multiplication.

Retirement income projection: Using the net after-tax proceeds, the skill builds a year-by-year retirement cash flow model from the owner's current age to age 90. It models income from CPP (with break-even analysis for deferral from age 60 to 70 — the 70 deferral produces a 42% enhancement over age 65 benefits), OAS (with clawback threshold management at the ~$90,997 net income level), RRSP/RRIF drawdown (including the mandatory RRIF conversion and minimum withdrawal schedule), TFSA distributions, VTB payment receipts, and non-registered investment income. The output confirms whether the projected net proceeds are sufficient to fund the owner's income target to age 90, and flags any gap that requires an adjustment to the exit price, timeline, or spending plan.

Registered plan and income splitting strategy: The skill recommends an RRSP melt-down strategy during lower-income years between sale and CPP/OAS commencement, spousal RRSP optimization, TFSA contribution room maximization (cumulative room to 2025: $95,000), and pension income splitting for RRIF and annuity income at age 65+. It also assesses life insurance needs post-exit, flags key-person insurance gaps during any transition period, and models corporate-owned life insurance CDA interaction with the CPA Skill.

CFA Skill — Post-Exit Investment Management

Investment Policy Statement: The skill produces a complete IPS covering the client profile and source of wealth, required return calculation (annual income needed divided by investable assets, plus 2.5% inflation), risk tolerance assessment across both objective ability to bear risk (time horizon, liquidity needs, income stability) and subjective willingness (prior market experience, drawdown tolerance), and a constraints summary covering liquidity requirements, tax considerations, and any sector avoidance preferences — particularly relevant for business owners exiting a specific sector who may not want equity exposure to that sector post-sale.

Asset allocation: The skill recommends one of three model portfolios keyed to the required return calculation: conservative (35% Canadian fixed income, 20% global fixed income hedged, 15% Canadian equities, 20% global equities, 10% alternatives), balanced (20% Canadian fixed income, 15% global fixed income, 20% Canadian equities, 30% global equities, 15% alternatives), or growth (10% Canadian fixed income, 25% Canadian equities, 45% global equities, 20% alternatives). Each model includes a drift tolerance of ±5% per asset class before a rebalancing trigger is flagged.

Account structure optimization: The skill assigns asset classes to accounts to maximize after-tax returns — highest-return assets (equities, alternatives) in TFSA for tax-free growth; interest-bearing assets (bonds, GICs) in RRSP/RRIF to defer the highest-taxed income category; Canadian dividends and capital gains in non-registered accounts to benefit from the dividend tax credit and the 50% capital gains inclusion rate. For large non-registered portfolios, the skill recommends ETFs over mutual funds to minimize embedded capital gains distributions, and flags the superficial loss rule for any planned tax-loss harvesting.

Who these skills are for: The CFP Skill is for CFP designates in good standing with FP Canada providing personal financial planning services to business owner clients. The CFA Skill is for CIRO-registered Portfolio Managers and Investment Advisors providing post-exit investment management. Neither skill is sold directly to business owners.