Exam (elaborations)
Seg Funds and annuities.
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Seg Funds and annuities.
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Seg Funds and annuitiesminimums - ANS-funds may have minimum deposits
duration - ANS-10 - 15 year minimums
penalties - ANS-withdrawals, account fees, switching, closing costs
prescribed annuity - ANS-same amount of interest and capital is received every
payment
Fixed income - ANS-low risk investor
variable income - ANS-price premium for indexing
life annuity guarantee - ANS-low risk investor, death premiums paid to beneficiary
present value - ANS-pv-fv/ (1+interest rate)*n
Future value - ANS-pv x 1 (1+interest rate)*n
DBPP - ANS-pays specified pension at retirement
DCPP - ANS-known as money purchase plan, no specified pay at retirement
GRRSP - ANS-sum available at retirement depends on earned income, RRSP
contribution limit
DPSP - ANS-shares portion of company porfits
Pooled registeres pension plan (PRPP) - ANS-RSP for small business employees and
self employed in which $ at retirement is not specified
nav - ANS-(total assets - liabilities) / # of units outstanding
saving phase - ANS-earn credit every year no withdrawal, phase of accumulation
, Payout phase - ANS-annual income based on minimum balance creating during saving
phase, pay out value may reset every 3 years, payouts increase if more premiums
contributed after 1st deposit
Individual variable insurance contract (IVIC) - ANS-lays terms of contract, termination,
benefits and WD
Contract includes - ANS-IVIC, risk, MER< fees and right to cancel
investor requirements - ANS-reason why letter, location (NR/REG),
beneficiary/annuitant, rider election form
FINTRAC - ANS-10k+ cash deposits, acting on 3rd party?
Person and license - ANS-
a credit file - ANS-
two original docs - ANS-
ongoing service - ANS-monitor clients, KYP, annual review, fund switches, resets
group plans - ANS-must be registered with CRA and Province
DBPP - ANS-sponsor liable to ensure fully funded, can be terminated and converted to
a DCPP, pays based on # of years usually, sponsor contribution deductible
DCPP - ANS-also known as a money purchase plan (MPP), sponsor needs to educate
employees, participation optional, contribution deductible
Group life income fund (LIF) - ANS-has minimum withdrawal amounts, allows continuity
with lower admin fees, restricts max withdrawals
group reg retirement savings plan (GRRSP) - ANS-limit to personal deductions,
generally not allowed to buy securities, lower fees than RSP, turns into RIF, sponsor
incurs payroll charges and EI on their contributions
Deferred profit sharing plan (DDSP) - ANS-employers contribution and fees are
deductible, employees with more than 10% of shares cannot participate
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