Segregated funds & annuities (advocis material) Questions and Correct Answers the Latest Update
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Course
Segregated funds
Institution
Segregated Funds
The investor who pays a _______pays no further sales fee if she redeems units
during the term of the contract.
front end load
A segregated fund in a _____is bound by the rule that apply to all_____.
Therefore, the oldest age at which a contract can begin as an _____is 71,
deposits can be m...
Segregated funds & annuities (advocis
material) Questions and Correct Answers
the Latest Update
The investor who pays a _______pays no further sales fee if she redeems units
during the term of the contract.
✓ front end load
A segregated fund in a _____is bound by the rule that apply to all_____.
Therefore, the oldest age at which a contract can begin as an _____is 71,
deposits can be made untill December 31 of the year in which the contract
owner turns 71 Then, the _____is converted to a registered retirement income
fund (RRIF).
✓ Registered retirement savings plan
Deposits or premiums paid into a non registered account or TFSA are not tax-
deductible, however, they are tax-deductible when paid into a _____, except
when the account is a RESP or RDSP.
✓ Registered account
Annuities that pay an income are called _____, they are differentiated by
whether the payout begins immediately or at a future date (deferred annuity).
Real return is calculated as the _____on an investment minus the rate of
inflation.
✓ Nominal Return
The three main asset classes are stocks, cash, and _____. Two other classes are
often added, they are real estate and commodities.
✓ Bonds
_____is calculated as
FV % (1 + interest) ^n
✓ Present value
Some segregated funds invest in other segregated funds, these are called _____.
✓ funds of funds
Prior to contract maturity, an investor can lose up to the sum invested since the
_____does not apply. The investor must also be prepared for the minimum 10
year term of the investment. The investor may be unable to take advantage of
other investment opportunities during those 10 years.
✓ Maturity guarantee
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