definitions first half

Question 1

liquid investment

Answer 1

we can convert to cash asap- savings account
chequeing account
cash

Question 2

5000$ invested, rate 3%, 4 yrs

Answer 2

1+0.03 to the power of 4 = 1.1255 x 5000 = 5627.54 (FINAL AWNSER)

Question 3

seg funds or IVIC

Answer 3

-for clients who want guarantee on their investments
-guarantee on PRINCIPLE but none on INTEREST

Question 4

what funds have creditor protection?

Answer 4

seg funds and annuities

Question 5

by pass probate/estate

Answer 5

ability for beni to receive $ without going through gov. proccess. can name a beni for death ebinift guarantee. (seg)

Question 6

stocks (shares / equities)

Answer 6

-HIGH risk
-no guarantee ($ can go up or down)
-cannot name benis

Question 7

Bonds (debt investment)

Answer 7

-LOW risk
-chances of capital loss are unlikely
-low fixed rate of return
-long maturity period

Question 8

GIC (guaranteed investment certificate)

Answer 8

-low and fixed ROR
-locked in for a fixed period of time

Question 9

fixed GIC and Variable GIC
(OPPOSITES)

Answer 9

Fixed GIC- locked low ROR
Variable GIC- interest rate depends on market

Question 10

What’s in the INFORMATION FOLDER

Answer 10

-recommended seg options with performance
-management fees
-previous performance history
-AGENT HAS TO SUBMIT TO CLIENT 2 DAYS BEFORE MEETING

Question 11

Switching $ from one seg fund to another

Answer 11

if client switches funds within 90 DAYS short term trading fee will apply plus pay taxes on any capital gains (only for non-registered acc)

Question 12

TAX ON GUARANTEES FOR BENIFICARY

Answer 12

If beni is receiving $ on a monthly basis they may need to pay some tax as the annuit.
if beni receives the payment as a LUMP-SUM ——>
50k invested- client dies and MV=80k
80-50k=30k x 30% MTR
= 9000$ in taxes for beni to pay before receiving lump-sum

Question 13

annuit

Answer 13

person receiving payments from the account owner