Yolanda has begun to set up an investment strategy for her retirement. She talks to her insurance agent about investing in a RRSP. The insurance agent tells her about an Individual Variable Insurance Contract that has had consistent performance in the past. He gives her some reading material and sets a follow up appointment. That evening, Yolanda reads the material that he left her.

What will she not require to help her make her decision?

Jeremy is interested in purchasing an IVIC. He contacts an insurance agent and receives an information folder, financial statements and a summary fact statement to review prior to completing a segregated fund contract.

What would be included in the information folder Jeremy has received?

When Brian died, his wife Roberta began to review all their financial material. She had never been involved in any of the financial decisions. Much of the information she read caused her to feel confused and frustrated. She finds paper work showing that Brian purchased a 10-year deferred straight life annuity 22 years ago and that the payment was $2,100 a month. She also sees that he has four 5-year GICs each worth $10,000 that he invested in each year over the last 5 years. She calls you, the insurance agent, and asks you to explain the GIC and the deferred annuity that Brian has.

Which of the following statements would be most accurate?

Tommy Takimoto has a $10,000 deferred annuity that he bought when he was

25. He also has purchased an $8,000 5-year GIC every year, for the last 3 years. Tommy has decided to be his own boss and open a sports and sushi bar. Tommy quits his job as an electrician and uses his emergency cash to start his sports and sushi bar. He is very excited about the future. Unfortunately his business does not do as well as he hopes it would. He decides to use his retirement fund to help pay the bills until the business is more profitable instead of using his credit cards even though he has more room available.

Which of the following statements about Tommy's deferred annuity and GIC is correct?

Every year for the last 5 years Douglas has invested $6,500 in a GIC. This year he speaks with a life insurance agent who tells him about deferred straight life annuities. Douglas asks many questions because this money is for his retirement.

What does the agent tell him?

Wesley purchases an Individual Variable Insurance Contract with $15,000. He was 55 at the time of the purchase. When he turns 60 he has a heart attack and decides after the surgery to retire and enjoy life. The value of the IVIC is now $18,400. He wants to withdraw as much as possible so he can visit family in Scotland.

What will apply with his withdrawal?

Daphne is a paramedic. She has a great group plan covering life insurance, medical and a pension plan. She decides to invest a $15,000 inheritance she received from her grandmother in a registered Individual Variable Insurance Contract. The contract has a 75% guarantee. Seven years later the value of.the account increased to $18,400. The next 2 years the fund experienced a dramatic decrease in value. When Daphne died from a car accident her account was worth only $10,000.

What amount did her husband Simon receive?

Rachael Seager loved to research and analyze investment opportunities. She had just learned about segregated funds and was reviewing the features and benefits of a number of segregated funds provided by different insurance companies. One of the things she wanted to analyze was the maturity, redemption, and surrender options.

What document will contain the information she seeks?

Kaylyn Aikens loved to research and analyze investment opportunities. She had just learned about segregated funds and was reviewing the features and benefits of a number of segregated funds provided by different insurance companies. One of the things she wanted to analyze was how the price of units is determined on purchase, transfer, or withdrawal including charges.

Where can she find this information?

Gretchen Barlow has been identified as a good prospect for investing in segregated funds. She started investing in GICs six years ago for retirement that is 17 years away. Gretchen has seen that the modest returns from GICs combined with the limited amount she saves each year will not be enough to secure a comfortable retirement. Gretchen likes the idea of the guarantees of investing in GIC's. She is very conservative and concerned about losing her money.

What would be the most appropriate investments to consider?

Wade has been identified as a good prospect for investing in segregated funds. He just received an inheritance of $75,000 and wants to invest it for retirement that is 35 years away. He has taken some investment classes and understands that he must be prepared to accept more risk when it comes to investing. Wade knows he will have time to recover from a market down turn because he will not need the money for many years. He thinks that by purchasing an IVIC it will allow him to offset some of the risk associated with investing.

What would be the least appropriate investments to consider?

David and Natalie are going to invest $16,000 in an Individual Variable Insurance Contract for their son Kenneth's education. They expect that he will attend a local university in 10 years. David and Natalie must now choose a sales charge that is best for this investment. They will be investing in a balanced fund. The fund's past performance shows that it has averaged an 8% annual rate of return over a 10-year period.

If we assume that the fund will perform in a similar manner in the next 10 years, what type of sales charge would be best for them?

The time has come for Jacqueline Gibson to take a close look at her investments. Over the last few years she has seen what risk return is all about. In the last half of the 90s she had seen great returns in her Stock portfolio. Unfortunately between 1999 and 2002 she lost all of the market gains and 25% of her original investment. 2003 saw some recovery in her portfolio. Now that she is 56 and 9 years away from retirement she feels she needs a more conservative investment approach from now until she retires at age 65. She plans to hold her investment in an RRSP and only start to withdraw some money when she converts to a RRIF at 69.

She would be advised to spread the $290,000 RRSP investment over the following segregated funds.

Scott has been identified as a good prospect for investing in segregated funds. He just received an inheritance of $100,000 and wants to invest it for retirement that is 10 years away. He has taken some investment classes and understands that he must be prepared to accept more risk when it comes to investing. Scott knows he will have no time to recover from a market down turn because he will need the money in ten years. He thinks that by purchasing an IVIC it will ·allow him to offset some of the risk associated with investing.

What would be the most appropriate investments to consider?.

While heading to work. on a foggy morning, Jerome was hit by another car causing him to lose control of his car and roll into the ditch. After months of therapy he was able to return to work part time. Jerome received a $20,000 payout from the insurance company. He wanted to invest in a conservative and guaranteed investment, so he decided to purchase an IVIC with the funds. The policy based IVIC had a 75% guarantee with a reset option and was invested in a dividend fund. Three years later the fund had grown to $23,000 so Jerome decided to reset the guarantee amount. Two years after that Jerome lost his job and needed to withdraw $9,000 to pay his bills.

Which of the following statements would be true regarding his IVIC?

Noel has decided to invest the $14,000 inheritance he received from his grandfather in a registered investment. His grandfather was an avid saver. Noel talks with his life insurance agent and purchases an Individual Variable Insurance Contract with $7,000 and a RRSP with $7,000.

Which of the following statements regarding the advantages of his products are correct?