Segregated Funds & Annuities (Advocis Material) with Complete Solutions!

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 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 account - ANSWER-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. Payout annuities - ANSWER-Annuities that pay an income are called _____, they are differentiated by whether the payout begins immediately or at a future date (deferred annuity). indexed - ANSWER-Once annuity payments start, they generally cannot be stopped before the end of the payment period. Each annuity payment is the same unless the annuity is _____or variable. Most annuities are issued with a set, or level payment. Creditor Protection - ANSWER-If a contracts owner surrenders her term annuity and receives its commuted value, ____would no longer exist for the sum received. Future Value - ANSWER-_____is calculated as follows : PV x (1 + interest) ^n inception - ANSWER-Once all approvals are in place, the fund is open for investment. The date when the fund begins operation is its _____date. Segregated funds - ANSWER-Insurers keep their _____separate from other company assets, thus giving them their name. Guaranteed investment certificates - ANSWER-Some investments guarantee that the full amount invested will be repaid plus a profit. These investments include _____, and some bonds. Nominal Return - ANSWER-Real return is calculated as the _____on an investment minus the rate of inflation. Bonds - ANSWER-The three main asset classes are stocks, cash, and _____. Two other classes are often added, they are real estate and commodities. Present value - ANSWER-_____is calculated as FV % (1 + interest) ^n funds of funds - ANSWER-Some segregated funds invest in other segregated funds, these are called _____. Maturity guarantee - ANSWER-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 mini