11/3/25, 3:50 PM Segregated funds and Annuities questions and answers Flashcards | Quizlet
Segregated funds and Annuities questions and
answers
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Practice questions for this set
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Guaranteed return of principle and interest. Min investment of $500. No fees
Choose an answer
1 Stocks 2 Advantages of GIC
3 Security of annuities 4 Advantages of stocks
Don't know?
Terms in this set (85)
https://quizlet.com/1102412424/segregated-funds-and-annuities-questions-and-answers-flash-cards/?new 1/8
, 11/3/25, 3:50 PM Segregated funds and Annuities questions and answers Flashcards | Quizlet
Also known as shares/equities.
Indicators of rise and decline are seen in:
Macro economics
Stocks Microeconomics
Investor feeling
—market risk—
CIPF protected
Investment Dealers Sells stocks, also provides advice for client
Discount broker Sells stocks, doesn't not provide advice for client
Higher risks, commissions on each trade, not
Disadvantages of stocks
insurance product.
Favourable taxing, capital gains. Losses can be used
Advantages of stocks to offset gains. High level of transparency and
liquidity.
Charges, fees, investment risk, risk to capital, age
Limitations of seg funds
restriction; gets converted to RIF. Sales charges, MER
% of deposits, negotiable, reduces deposit before
Front end load
investment
Decreasing charge over a set amount of years, only
Deferred sales charge
applies to withdrawals. Usually under 6/7 years
Ongoing fee charged to clients.
Client is paying for management fees, operating
Management expense expenses, cost of guarantees.
ratio (MER) Reduces investment returns, e.g MER= 2% then 5%
return becomes 3%
Higher MER for more active funds
Like a mortgage, you are the lender. Set and forget
Annuities product. Lump sum is deposited, institution pays over
a set period of time. Payment is capital and interest.
Pays out on a regular basis, term certain- end date,
Pay-out annuity
and life time- never ends(ins companies only)
https://quizlet.com/1102412424/segregated-funds-and-annuities-questions-and-answers-flash-cards/?new 2/8
Segregated funds and Annuities questions and
answers
Save
Practice questions for this set
Learn 1 /7 Study with Learn
Guaranteed return of principle and interest. Min investment of $500. No fees
Choose an answer
1 Stocks 2 Advantages of GIC
3 Security of annuities 4 Advantages of stocks
Don't know?
Terms in this set (85)
https://quizlet.com/1102412424/segregated-funds-and-annuities-questions-and-answers-flash-cards/?new 1/8
, 11/3/25, 3:50 PM Segregated funds and Annuities questions and answers Flashcards | Quizlet
Also known as shares/equities.
Indicators of rise and decline are seen in:
Macro economics
Stocks Microeconomics
Investor feeling
—market risk—
CIPF protected
Investment Dealers Sells stocks, also provides advice for client
Discount broker Sells stocks, doesn't not provide advice for client
Higher risks, commissions on each trade, not
Disadvantages of stocks
insurance product.
Favourable taxing, capital gains. Losses can be used
Advantages of stocks to offset gains. High level of transparency and
liquidity.
Charges, fees, investment risk, risk to capital, age
Limitations of seg funds
restriction; gets converted to RIF. Sales charges, MER
% of deposits, negotiable, reduces deposit before
Front end load
investment
Decreasing charge over a set amount of years, only
Deferred sales charge
applies to withdrawals. Usually under 6/7 years
Ongoing fee charged to clients.
Client is paying for management fees, operating
Management expense expenses, cost of guarantees.
ratio (MER) Reduces investment returns, e.g MER= 2% then 5%
return becomes 3%
Higher MER for more active funds
Like a mortgage, you are the lender. Set and forget
Annuities product. Lump sum is deposited, institution pays over
a set period of time. Payment is capital and interest.
Pays out on a regular basis, term certain- end date,
Pay-out annuity
and life time- never ends(ins companies only)
https://quizlet.com/1102412424/segregated-funds-and-annuities-questions-and-answers-flash-cards/?new 2/8
