Exam (elaborations)
SEGREGATED FUNDS AND ANNUITIES CERTIFICATION (SFA) EXAM
- Course
- Institution
SEGREGATED FUNDS AND ANNUITIES CERTIFICATION (SFA) EXAM...
[Show more]
Content preview
SEGREGATED FUNDS AND ANNUITIESCERTIFICATION (SFA) EXAM
Canadian Pension Plan Benefits: ANSWER CPP Income Formula = 8.4%
yearly tax x number of years x CPP at age 65
The formula for calculating RRSP contributions is income multiplied by 18%.
Market-linked GIC - ANSWER A market-linked GIC has an interest rate that is
connected to the performance of the stock market, which allows for a greater
interest rate in the event of favorable market returns. While the returns are
capped, there is the possibility of higher interest than with other GIC products.
CASHABLE GIC - ANSWER Cashable GICs allow consumers to withdraw
their money at any time, but they have a lower interest rate than fixed-rate
GICs.
Foreign Dividends: ANSWER Foreign dividends are treated as interest and
taxed at his marginal rate. Only Canadian dividends are eligible for the dividend
tax credit. The dividend tax credit makes Canadian dividends more tax-efficient
than overseas payouts.
Annuity Advantages - Annuities offer advantages such as not having to worry
about outliving one's money when purchasing a life or joint and survivor
annuity. I
If the annuity is prescribed, less tax may be owed in the first years of payment.
Only an annuity is guaranteed for life and can mitigate longevity risk.
Canadian Investor Protection Fund (CIPF) - Answer The Canadian Investor
Protection Fund (CIPF) protects stock investors in the event of a dealer's
insolvency.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller luzlinkuz. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79223 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now