Segregated Funds and Annuities (SFA) PACKAGE DEAL 2024!!

Tax free savings account - ANSWER-Upon withdrawal from a ________, neither the principal deposit nor the income earned within the plan are treated as taxable income in the hands of the plan holder. Registered retirement income fund - ANSWER-The annual minimum ________withdrawals can be based on t...

Canadian Pension Plan Benefits - ANSWER-CPP Income Formula = 8.4% annual tax x number of years x CPP at age 65 RRSP Contributions - ANSWER-RRSP Contribution Room Formula = Income x 18% Market-Linked GIC - ANSWER-A market-linked GIC has an interest rate that is tied to the performance of the st...

Investing - ANSWER-using money to make money Principal - ANSWER-initial capital/seed sometimes ACB (adjusted cost base) Fair market value - ANSWER-current value of a property Return, gain, growth, interest - ANSWER-profit above the principal Liquidity - ANSWER-quick, easy, conversion ...

front end load - ANSWER-The investor who pays a _______pays no further sales fee if she redeems units during the term of the contract. Registered retirement savings plan - ANSWER-A segregated fund in a _____is bound by the rule that apply to all_____. Therefore, the oldest age at which a contract...

Segregated Funds and Annuities - ANSWER-Investment and savings products marketed to Indvidual and group prospects and clients Compounding - ANSWER-Usually refers to earning interest on an investment. Nominal Return - ANSWER-Stated or advertised rate. For example, a savings account is advertise...

Gary is reviewing his portfolio and notices that the value of a segregated fund he recently purchased has dropped significantly. He is worried about the fund. The last time he spoke with his advisor was the day he purchased the fund. He and his advisor have both been busy and not had time to speak. ...

Group Registered Retirement Savings Plan (GRRSP) - ANSWER-GRRSPs offer investors a limited variety of investment choices, but they have lower fees compared with individual RRSPs. Cancellation of Segregated Fund Contract - ANSWER-An investor may cancel or rescind the segregated fund contract in wr...

10 years. (Reference: Chapter 2) - ANSWER-What is the minimum maturity date for a segregated fund contract? NAVPU = [total value of assets - liabilities] / [number of units outstanding]. (Reference: Chapter 2) - ANSWER-What is the NAVPU Formula? $35,000. The client receives the greater...

S is 68,single. She has saved $250,000 in non-registered funds, and is seeking guaranteed income to last her as long as she lives. She wants to maximize her available income for the immediate future. Her children are financially comfortable. Which annuities will be most appropriate for her? - ANSWER...

In a spousal RRSP who names the beneficiary? - ANSWER-The recipient of the deposits names the beneficiary The annuitant. (Reference: Chapter 6) - ANSWER-In a segregated fund contract, who is the person on whose life the guarantees are based and whose death triggers payment of the death benefi...

What document must a client be given prior to completing an application for an individual Variable Insurance Contract (IVIC)? - ANSWER-Information folder: the information folder contains all of the essential information for an informed purchasing decision, thus, it must be given to the client before...

If a person begins receiving their pension at age 60, how do you calculate their penalty for the early pension? - ANSWER-The penalty for early pension is 0.6% per month or 7.2% per year (which is equal to 0.6 * 12 months). Power of attorney for property. (Reference: Chapter 4) - ANSWER-A clie...

A segregated fund is also known as what? - ANSWER-An Individual Variable Contract or IVIC What investment fund would be most appropriate when an objective is to (for example) purchase a house in the near future, and why? - ANSWER-Money Market Fund. 95% of the net assets must be invested in cash o...

An accumulation annuity. (Reference: Chapter 3) - ANSWER-Which type of annuity is most appropriate for a young investor with ample income and is primarily interested in investment growth? Buy a series of annuities over time. (Reference: Chapter 3) - ANSWER-Tony wishes to purchase an annui...