Unit 4 Segregated Funds and Annuities Exam Questions and Answers 2024

Unit 4 Segregated Funds and Annuities Exam Questions and Answers 2024 What is an Investor Profile? -Correct Answer-Quick view of client's financial and personal factors influencing their investment choices What must Agents review before creating an Investor Profile for the Client ? -Correct Answer-- asses Cx overall financial situation ( assets and liabilities) - personal factors that can affect investment decisions - needs & objectives - sources of income during retirement - programs and savings plans ( that aid and help Cx meet needs) How is Financial Position evaluated? -Correct Answer-- through net worth and cash-flow statements What does a Net Worth Statement do and what can it show? -Correct Answer-- list assets - subtracts liabilities Shows if Cx has positive net worth ( good) or negative net worth ( bad) What is a Cash flow statement and what does it show ? -Correct Answer-- lists income ( inflow) - lists expenses ( outflow) Shows if investor earns more than spends What does a Positive Cash Flow indicate? -Correct Answer-- money available for spending, saving and investing What does Negative Cash Flow indicate? -Correct Answer-- unsustainable financial position - more money being spent than earned What is an Asset? -Correct Answer-Anything a person owns that has cash value What is the single most valuable asset most own and why? -Correct Answer-- their homes