Seg Funds Mock Olivers – Questions With
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Terms in this set (30)
Luke will turn 70 years Canada Pension Plan (CPP)
old this year. He retired Rationale:
two years ago, after a 35- Individuals can defer their CPP and OAS benefits
year career at a large but must start receiving them by age 70. They do not
Canadian manufacturer. need to convert their RRSP to a RRIF before the
His wife died around the year they turn 71. (Refer to Sections 4.4.1.3, 4.4.2)
same time and he has
been living off the life
insurance benefit he
received as a result of her
passing, so he has not
touched the savings in his
Registered Retirement
Savings Plan (RRSP), nor
has he started receiving
any government pension.
Which among the
following income sources
will Luke start to receive
this year?
a) Tax-Free Savings
Account (TFSA) holdings
b) Canada Pension Plan
(CPP)
c) Life Income Fund (LIF)
d) Registered Retirement
Income Fund (RRIF)
YOUR ANSWER
,Telma is a single mother Savings in an RESP account grow tax-deferred and
of two children aged 4 contributions are not tax-deductible. There is a
and 7. She meets with her lifetime contribution limit per beneficiary of $50,000,
financial advisor to regardless of whether the RESP is an individual or
gather some information family plan. A family plan can have more than one
about RESP contributions beneficiary and each beneficiary must be related to
to save for her children's the subscriber. An RESP beneficiary (i.e., the
education. Which of the student) receives withdrawals from the plan as
following information Educational Assistance Payments (EAPs). EAPs are
provided by the advisor paid only when the student is enrolled in a
is true? qualifying educational program. Withdrawals are
a) Savings grow tax- taxed in the hands of the beneficiary. Since most
deferred and students have very little income, the EAPs are
contributions are not tax- usually tax-free.Ref: 4.7.4
deductible.
b) If the RESP is a family
plan, the lifetime
contribution limit per
beneficiary is $100,000.
c) A family RESP plan can
only have three
beneficiaries, and the
beneficiaries need not be
related to the subscriber.
d) All RESP beneficiaries
receive Educational
Assistance Payments
(EAPs) which are taxable
to the subscriber.
, Lena is planning to invest Income funds are based on bonds, and growth is
in a type of segregated derived by the regular interest income the bonds
funds called income pay and their possibility for capital appreciation.
funds and she asks her Income funds are not restricted to bonds and some
insurance agent to may also hold high-quality stocks. Income funds are
provide her with some a lower-risk fund.Ref: 2.2.4
information related to
income funds. Her
insurance agent is likely
to mention that income
funds are:
a) based on bonds.
b) restricted to bonds.
c) high-risk funds.
d) based on stocks.
Jeffrey used $155,000 of Jeffrey will receive $245,365 on the maturity of the
his inheritance to contract. The guarantee is $245,365 × 75% =
purchase an Individual $184,023.75, however that is the minimum as the
Variable Insurance investor receives the greater of the maturity
Contract with M & J guarantee or the market value of the fund. (Refer to
Insurance Co. The Section 1.3.1.4)
maturity on the contract
was a deposit-based
guarantee of 75%. Ten
years later, the contract
was worth $245,365.
Not including fees and
charges owed, how much
will Jeffrey receive at
maturity?
a) $245,365
b) $128,898.75
c) $0
d) $184,023.75
Verified Answers
Save
Terms in this set (30)
Luke will turn 70 years Canada Pension Plan (CPP)
old this year. He retired Rationale:
two years ago, after a 35- Individuals can defer their CPP and OAS benefits
year career at a large but must start receiving them by age 70. They do not
Canadian manufacturer. need to convert their RRSP to a RRIF before the
His wife died around the year they turn 71. (Refer to Sections 4.4.1.3, 4.4.2)
same time and he has
been living off the life
insurance benefit he
received as a result of her
passing, so he has not
touched the savings in his
Registered Retirement
Savings Plan (RRSP), nor
has he started receiving
any government pension.
Which among the
following income sources
will Luke start to receive
this year?
a) Tax-Free Savings
Account (TFSA) holdings
b) Canada Pension Plan
(CPP)
c) Life Income Fund (LIF)
d) Registered Retirement
Income Fund (RRIF)
YOUR ANSWER
,Telma is a single mother Savings in an RESP account grow tax-deferred and
of two children aged 4 contributions are not tax-deductible. There is a
and 7. She meets with her lifetime contribution limit per beneficiary of $50,000,
financial advisor to regardless of whether the RESP is an individual or
gather some information family plan. A family plan can have more than one
about RESP contributions beneficiary and each beneficiary must be related to
to save for her children's the subscriber. An RESP beneficiary (i.e., the
education. Which of the student) receives withdrawals from the plan as
following information Educational Assistance Payments (EAPs). EAPs are
provided by the advisor paid only when the student is enrolled in a
is true? qualifying educational program. Withdrawals are
a) Savings grow tax- taxed in the hands of the beneficiary. Since most
deferred and students have very little income, the EAPs are
contributions are not tax- usually tax-free.Ref: 4.7.4
deductible.
b) If the RESP is a family
plan, the lifetime
contribution limit per
beneficiary is $100,000.
c) A family RESP plan can
only have three
beneficiaries, and the
beneficiaries need not be
related to the subscriber.
d) All RESP beneficiaries
receive Educational
Assistance Payments
(EAPs) which are taxable
to the subscriber.
, Lena is planning to invest Income funds are based on bonds, and growth is
in a type of segregated derived by the regular interest income the bonds
funds called income pay and their possibility for capital appreciation.
funds and she asks her Income funds are not restricted to bonds and some
insurance agent to may also hold high-quality stocks. Income funds are
provide her with some a lower-risk fund.Ref: 2.2.4
information related to
income funds. Her
insurance agent is likely
to mention that income
funds are:
a) based on bonds.
b) restricted to bonds.
c) high-risk funds.
d) based on stocks.
Jeffrey used $155,000 of Jeffrey will receive $245,365 on the maturity of the
his inheritance to contract. The guarantee is $245,365 × 75% =
purchase an Individual $184,023.75, however that is the minimum as the
Variable Insurance investor receives the greater of the maturity
Contract with M & J guarantee or the market value of the fund. (Refer to
Insurance Co. The Section 1.3.1.4)
maturity on the contract
was a deposit-based
guarantee of 75%. Ten
years later, the contract
was worth $245,365.
Not including fees and
charges owed, how much
will Jeffrey receive at
maturity?
a) $245,365
b) $128,898.75
c) $0
d) $184,023.75
