Question 1

All of your contributions to RPPs and RRSPs are tax deductible dollar for dollar against gross earned income.

Accepted Answer

A) True 
 B)False  True

Question 2

Both OAS and CPP require pensioners to apply for the benefits.

Accepted Answer

A) True 
 B)False  True

Question 3

Once a pensioner reaches age 71,she is able begin withdrawing money from her RRSP tax free.

Accepted Answer

A) True 
 B)False  False

Question 4

The Lifelong Learning Plan (LLP)allows full-time students to withdraw $20 000 per year for two years from their RRSPs to finance their educations.

Accepted Answer

A) True 
 B)False

Question 5

The Guaranteed Income Supplement (GIS)benefit will be subject to clawback if

Accepted Answer

A) the pensioner has liquid savings of at least $10,000. 
B) the pensioner has total investments of at least $10,000. 
C) the pensioner receives any income other than OAS. 
D) the pensioner is under the age of 65. 
A) the pensioner has liquid savings of at least $10,000. 
B) the pensioner has total investments of at least $10,000. 
C) the pensioner receives any income other than OAS. 
D) the pensioner is under the age of 65.

Question 6

You are retiring and the balance of your RRSP is $203 126.What amount of monthly income could this provide you for 20 years if you can get a four percent annual return?

Accepted Answer

A) $1223 
B) $846 
C) $880 
D) $1782 
A) $1223 
B) $846 
C) $880 
D) $1782

Question 7

The retirement benefit you receive from a money purchase defined-contribution plan will be based on

Accepted Answer

A) a certain percentage of your income in the later years of employment. 
B) a formula that guarantees a set amount to support a modest retirement lifestyle. 
C) the performance of the funds contributed on your behalf. 
D) the performance of your company's shares. 
A) a certain percentage of your income in the later years of employment. 
B) a formula that guarantees a set amount to support a modest retirement lifestyle. 
C) the performance of the funds contributed on your behalf. 
D) the performance of your company's shares.

Question 8

The year's maximum pensionable earnings (YMPE)will

Accepted Answer

A) change each year based on a calculation of average incomes in Canada. 
B) change each year based on inflation as measured by the CPI. 
C) be adjusted periodically based on government fiscal policy. 
D) be adjusted every few years based on average Canadian incomes and CPI. 
A) change each year based on a calculation of average incomes in Canada. 
B) change each year based on inflation as measured by the CPI. 
C) be adjusted periodically based on government fiscal policy. 
D) be adjusted every few years based on average Canadian incomes and CPI.

Question 9

If your employer offers a pension plan,that should be the first plan you consider because your employer will at least match your contributions to the plan.

Accepted Answer

A) True 
 B)False

Question 10

List four sources of income you may be drawing on when you retire and rough estimates for how much you anticipate having from each source in today's dollars.

Accepted Answer

Many possible suggestions but should be

Question 11

If you earn the maximum pensionable earnings (YMPE)amount in a given year,you and your employer will have funded the maximum amount to the Canada Pension Plan for that year.

Accepted Answer

A) True 
 B)False

Question 12

On average,a final average earnings plan and a career average plan will generate the same level of pension income.

Accepted Answer

A) True 
 B)False

Question 13

Pension splitting for couples over age 65

Accepted Answer

A) is only possible by equalizing RRSP plans. 
B) requires the couple to do a CPP pension assignment first. 
C) is only possible with employer pension and CPP income. 
D) can be applied to pension,CPP and RRIF income. 
A) is only possible by equalizing RRSP plans. 
B) requires the couple to do a CPP pension assignment first. 
C) is only possible with employer pension and CPP income. 
D) can be applied to pension,CPP and RRIF income.

Question 14

Once you leave a job with an employer,you will probably have to forfeit your pension plan unless you have been with the company for five or more years.

Accepted Answer

A) True 
 B)False

Question 15

Payments made to you by Old Age Security are based on

Accepted Answer

A) your residency in Canada between ages 16 and 65. 
B) the length of time you worked in Canada prior to age 65. 
C) your average YMPE earnings between ages 18 and 65. 
D) your adult residency in Canada between 10 and 40 years. 
A) your residency in Canada between ages 16 and 65. 
B) the length of time you worked in Canada prior to age 65. 
C) your average YMPE earnings between ages 18 and 65. 
D) your adult residency in Canada between 10 and 40 years.

Question 16

With which of the following plans will you be able to most accurately predict your retirement income in advance?

Accepted Answer

A) Defined-contribution plan 
B) RRSP 
C) Traditional LIRA 
D) Defined-benefit plan 
A) Defined-contribution plan 
B) RRSP 
C) Traditional LIRA 
D) Defined-benefit plan

Question 17

Most defined-contribution plans allow some investment flexibility including the option to choose

Accepted Answer

A) individual mortgages. 
B) commodity futures. 
C) real estate building rental. 
D) large-cap mutual fund units. 
A) individual mortgages. 
B) commodity futures. 
C) real estate building rental. 
D) large-cap mutual fund units.

Question 18

Defined contribution pension plans are not worth taking advantage of because they are essentially the same as an RRSP.

Accepted Answer

A) True 
 B)False

Question 19

If you earned $66 000 in the previous year and received a pension adjustment of $8200,then you would have $3680 RRSP room left for that year.

Accepted Answer

A) True 
 B)False

Question 20

Old Age Security benefits

Accepted Answer

A) can be deferred five years which would increase your benefit by 36%. 
B) begins to be clawed back for people whose income reaches $50,000. 
C) can be claimed at age 60,but at a reduced amount. 
D) are a nontaxable benefit. 
A) can be deferred five years which would increase your benefit by 36%. 
B) begins to be clawed back for people whose income reaches $50,000. 
C) can be claimed at age 60,but at a reduced amount. 
D) are a nontaxable benefit.

All of your contributions to RPPs and RRSPs are tax deductible dollar for dollar against gross earned income.

Both OAS and CPP require pensioners to apply for the benefits.

Once a pensioner reaches age 71,she is able begin withdrawing money from her RRSP tax free.

The Lifelong Learning Plan (LLP)allows full-time students to withdraw $20 000 per year for two years from their RRSPs to finance their educations.

The Guaranteed Income Supplement (GIS)benefit will be subject to clawback if

You are retiring and the balance of your RRSP is $203 126.What amount of monthly income could this provide you for 20 years if you can get a four percent annual return?

The retirement benefit you receive from a money purchase defined-contribution plan will be based on

The year's maximum pensionable earnings (YMPE)will

If your employer offers a pension plan,that should be the first plan you consider because your employer will at least match your contributions to the plan.

List four sources of income you may be drawing on when you retire and rough estimates for how much you anticipate having from each source in today's dollars.

If you earn the maximum pensionable earnings (YMPE)amount in a given year,you and your employer will have funded the maximum amount to the Canada Pension Plan for that year.

On average,a final average earnings plan and a career average plan will generate the same level of pension income.

Pension splitting for couples over age 65

Once you leave a job with an employer,you will probably have to forfeit your pension plan unless you have been with the company for five or more years.

Payments made to you by Old Age Security are based on

With which of the following plans will you be able to most accurately predict your retirement income in advance?

Most defined-contribution plans allow some investment flexibility including the option to choose

Defined contribution pension plans are not worth taking advantage of because they are essentially the same as an RRSP.

If you earned $66 000 in the previous year and received a pension adjustment of $8200,then you would have $3680 RRSP room left for that year.

Old Age Security benefits

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing,Managing and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

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Exam 5: Retirement and Estate Planning - Retirement Planning

All of your contributions to RPPs and RRSPs are tax deductible dollar for dollar against gross earned income.

Both OAS and CPP require pensioners to apply for the benefits.

Once a pensioner reaches age 71,she is able begin withdrawing money from her RRSP tax free.

The Lifelong Learning Plan (LLP)allows full-time students to withdraw $20 000 per year for two years from their RRSPs to finance their educations.

The Guaranteed Income Supplement (GIS)benefit will be subject to clawback if

You are retiring and the balance of your RRSP is $203 126.What amount of monthly income could this provide you for 20 years if you can get a four percent annual return?

The retirement benefit you receive from a money purchase defined-contribution plan will be based on

The year's maximum pensionable earnings (YMPE)will

If your employer offers a pension plan,that should be the first plan you consider because your employer will at least match your contributions to the plan.

List four sources of income you may be drawing on when you retire and rough estimates for how much you anticipate having from each source in today's dollars.

If you earn the maximum pensionable earnings (YMPE)amount in a given year,you and your employer will have funded the maximum amount to the Canada Pension Plan for that year.

On average,a final average earnings plan and a career average plan will generate the same level of pension income.

Pension splitting for couples over age 65

Once you leave a job with an employer,you will probably have to forfeit your pension plan unless you have been with the company for five or more years.

Payments made to you by Old Age Security are based on

With which of the following plans will you be able to most accurately predict your retirement income in advance?

Most defined-contribution plans allow some investment flexibility including the option to choose

Defined contribution pension plans are not worth taking advantage of because they are essentially the same as an RRSP.

If you earned $66 000 in the previous year and received a pension adjustment of $8200,then you would have $3680 RRSP room left for that year.

Old Age Security benefits

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing,Managing and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

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