Seg Fund Exam Questions and Answers with complete solutions | Graded A+

Grace's personal net worth shows the following assets: • RRIF: $420,000, all invested in GICs • Home: $560,000 • Cottage: $320,000 • Savings account: $70,000 She also has the following liability: • Mortgage on the cottage: $40,000 Based on the information provided, which of the following conclusions corresponds to the Grace's situation? a) She has more than enough assets to last through her retirement. b) She has low risk tolerance. c) She has no need for life insurance. d) She is at least age 71. - Correct answer: b) Explanations Answers a and c: False. We can't confirm that she has enough assets to last throughout her retirement or that she doesn't need life insurance, because we don't have any information concerning her current age, income, goals, Summary of Financial Position, retirement age, liquidity situation, life insurance and family situation, etc. An agent must obtain all this information to properly determine the client's situation, goals and investor profile. Answer b: Correct answer. Grace has low risk tolerance since all her money is invested in GICs and a savings account. Moreover, she only has a small loan on her properties