Segregated Funds & Annuities - Chapter 4 Questions and Answers 100% Correct(GRADED A+)

If a person begins receiving their pension at age 60, how do you calculate their penalty for the early pension? - ANSWER-The penalty for early pension is 0.6% per month or 7.2% per year (which is equal to 0.6 * 12 months). Power of attorney for property. (Reference: Chapter 4) - ANSWER-A client is concerned that they may not be able to make sound decisions regarding their savings. Which document would be most appropriate? Longevity Risk. (Reference: Chapter 4) - ANSWER-Which type of risk describes the risk to a client of living longer than expected and outliving their savings? $9,000: 3 months of expenses ($3,000). (Reference: Chapter 4) - ANSWER-Tom earns $6,000 monthly and has monthly living expenses of $3,000. How much savings is generally advised for Tom's emergency fund? Subscriber. (Reference: Chapter 4) - ANSWER-Jason opens an RESP for his son, to help prepare for the cost of university tuition. What is Jason's role in this structure? An income supplement paid by the federal government to qualifying spouses of OAS and GIS recipients. (Reference: Chapter 4) - ANSWER-What is 'The Allowance'? A method to determine the benefit paid by a defined benefit pension plan based on average earnings during the pre-retirement period. (Reference: Chapter 4) - ANSWER-What do final average earnings refer to? Shifting income from a high marginal tax rate (MTR) family member to a lower MTR member to reduce total income taxes paid. (Reference: Chapter 4) - ANSWER-What is income splitting? The total annual pension credits from all plans in which the member participates, reducing their RRSP contribution amount in the following year. (Reference: Chapter 4) - ANSWER-What is a pension adjustment? A registered plan allowing non-deductible contributions, in a tax deferred savings program for the benefit of qualifying disabled persons. (Reference: Chapter 4) - ANSWER-What is a Registered Disability Savings Plan? Tony can