Segregated Funds And Annuities Questions With Correct Answers

Accumulation annuity {Ans: functions as a savings income stream is not created by an accumulation annuity - it's purpose is investment growth on maturity this can be surrendered or converted to payout annuity}Assuris coverage {Ans: C}Defined contribution pension (DCPP) {Ans: also known as money purchase plan, does not pay a specified pension at retirement to plan members}DBPP - defined benefit pension plan {Ans: benefit is secured, based on number of years of service and income employer responsible if there is a deficit - employer is at most risk for individual, it's called Individual Pension Plan}Old Age Security (OAS) {Ans: - passive income (funded by tax payers) - taxable - subject to OAS claw back - can be deferred (delayed) with bonus - be 65 or older - Canadian citizen or a legal resident - Have resided in Canada for at least 10 years after turning age 18 - have resided in Canada for at least 20 years after turning age 18 if living outside Canada}Non-prescribed (accrual) Annuity Taxation {Ans: more interest payment and more tax up front (thus better if tax rate is higher at later stages)}RRIF - registered retirement income fund {Ans: