Question 1

For retirees,the most important difference between CPP and OAS is that

Accepted Answer

A) Only OAS can be taken early at a reduced amount. 
B) Only OAS is based on income earned each year relative to the YMPE. 
C) Only CPP can be taken early at a reduced amount. 
D) Only CPP can be deferred to receive an increased monthly amount. 
A) Only OAS can be taken early at a reduced amount. 
B) Only OAS is based on income earned each year relative to the YMPE. 
C) Only CPP can be taken early at a reduced amount. 
D) Only CPP can be deferred to receive an increased monthly amount.

Question 2

In the past 10 years or so,many employers have shifted from defined-benefit to defined-contribution retirement plans to reduce their financial risk in funding employees' retirements.

Accepted Answer

A) True 
 B)False

Question 3

If you invested $10 000 in an RRSP 30 years ago and it has a value today of $100000 ,what amount will you pay tax on when you withdraw it during your retirement years?

Accepted Answer

A) Only on the initial $10 000 
B) Only on the $90 000 growth 
C) On all $100 000 as it is withdrawn 
D) There is no tax to be paid in retirement. 
A) Only on the initial $10 000 
B) Only on the $90 000 growth 
C) On all $100 000 as it is withdrawn 
D) There is no tax to be paid in retirement.

Question 4

Which of the following is a tax-free benefit?

Accepted Answer

A) OAS 
B) CPP 
C) GIS 
D) YBE 
A) OAS 
B) CPP 
C) GIS 
D) YBE

Question 5

Saving $2000 per year from age 25 to 35 will give you more money at age 65 than saving $4000 per year from age 40 to 50,if all your funds grow at five percent.

Accepted Answer

A) True 
 B)False

Question 6

Paul starts saving $1000 per year from age 25,while Harper starts saving $5000 per year at age 45.At a moderate rate of return of 7 percent,how much will each have at age 65?

Accepted Answer

Paul
C/Y 1,P/Y 1,N 40,I 7,PV 0

Question 7

Income from which of the following sources would have no impact on OAS clawback?

Accepted Answer

A) Tax free savings account	 (TFS
A)  
B) Locked-in retirement account (LIR
A)  
C) Canada Pension Plan 
D) Spousal RRSP 
A) Tax free savings account	 (TFS
A)  
B) Locked-in retirement account (LIR
A)  
C) Canada Pension Plan 
D) Spousal RRSP

Question 8

If you had lived in Canada for 30 years,had $50 000 income from various pensions and were old enough to receive Old Age Security benefits,you would qualify for seventy five percent of the maximum OAS benefit.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true about RRSPs?

Accepted Answer

A) You can withdraw funds tax free once you are over age 71. 
B) There is no limit on the dollar amount you can contribute. 
C) Your investment income is tax-sheltered in the plan. 
D) You can transfer the funds to your children tax-sheltered. 
A) You can withdraw funds tax free once you are over age 71. 
B) There is no limit on the dollar amount you can contribute. 
C) Your investment income is tax-sheltered in the plan. 
D) You can transfer the funds to your children tax-sheltered.

Question 10

If you qualify,the maximum withdrawal allowed under the Home Buyers' Plan (HBP)is

Accepted Answer

A) $20 000 per person. 
B) $25 000 per person. 
C) $25 000 per couple. 
D) $40 000 per couple. 
A) $20 000 per person. 
B) $25 000 per person. 
C) $25 000 per couple. 
D) $40 000 per couple.

Question 11

Which of the following is true regarding LIRA and locked-in RRSP accounts at age 71?

Accepted Answer

A) LRIFs and LIFs can be cashed in but will be fully taxed. 
B) Some provinces have LIFs and some have LRIFs. 
C) At age 80,LRIF funds must be used to purchase a life annuity. 
D) LRIFs and LIFs have the same withdrawal schedule throughout the retirement years. 
A) LRIFs and LIFs can be cashed in but will be fully taxed. 
B) Some provinces have LIFs and some have LRIFs. 
C) At age 80,LRIF funds must be used to purchase a life annuity. 
D) LRIFs and LIFs have the same withdrawal schedule throughout the retirement years.

Question 12

If you want to save $1 000 000 for retirement with $200 monthly deposits at eight percent interest compounded monthly,how long will it take?

Accepted Answer

A) 50 years,1 month 
B) 43 years,3 months 
C) 44 years,4 months 
D) 44 years,1 month 
A) 50 years,1 month 
B) 43 years,3 months 
C) 44 years,4 months 
D) 44 years,1 month

Question 13

What rate of return (compounded monthly)will you need,to reach a lump-sum total of $500000 in 20 years if you contribute $500 per month?

Accepted Answer

A) 12.1 percent 
B) 8)9 percent 
C) 13.2 percent 
D) 7)31 percent 
A) 12.1 percent 
B) 8)9 percent 
C) 13.2 percent 
D) 7)31 percent

Question 14

Old Age Security can be deferred for five years,which would increase ones benefit by an additional 36 percent.

Accepted Answer

A) True 
 B)False

Question 15

If you have been in an employer-sponsored pension plan for three years and you leave your employer well before retirement

Accepted Answer

A) you are not entitled to the employer's contribution to your plan. 
B) you can transfer the funds to a RRIF. 
C) you can transfer the plan to your new employer has a plan the permits the transfer. 
D) you can withdraw the funds tax-free within 30 days of departure,if the amount is under $30000. 
A) you are not entitled to the employer's contribution to your plan. 
B) you can transfer the funds to a RRIF. 
C) you can transfer the plan to your new employer has a plan the permits the transfer. 
D) you can withdraw the funds tax-free within 30 days of departure,if the amount is under $30000.

Question 16

Danielle is 40 years old and has saved $150 000 in her RRSP.Her goal was to reach $1000000 by the time she turns 60.How much more will she have to save each year if she maintains a nine percent annual return on her investments?

Accepted Answer

A) $3115 
B) $31 150 
C) $15 280 
D) $6230 
A) $3115 
B) $31 150 
C) $15 280 
D) $6230

Question 17

The combination of Old Age Security and the Canada Pension plan provide sufficient income to support the retirement lifestyle of most individuals.

Accepted Answer

A) True 
 B)False

Question 18

Once you are 'vested' in your company's pension plan,you can cash in the funds in if you decide to leave the company.

Accepted Answer

A) True 
 B)False

Question 19

What was the approximate maximum annual CPP when applying at retirement age in 2017?

Accepted Answer

A) $13 400 
B) $10 000 
C) $16 000 
D) $18 000 
A) $13 400 
B) $10 000 
C) $16 000 
D) $18 000

Question 20

According to Statistics Canada,for many Canadians,the most important source of retirement income will be

Accepted Answer

A) the OAS benefits. 
B) the investments in their RRSPs. 
C) the equity they have in their homes. 
D) their pension plans. 
A) the OAS benefits. 
B) the investments in their RRSPs. 
C) the equity they have in their homes. 
D) their pension plans.

For retirees,the most important difference between CPP and OAS is that

In the past 10 years or so,many employers have shifted from defined-benefit to defined-contribution retirement plans to reduce their financial risk in funding employees' retirements.

If you invested $10 000 in an RRSP 30 years ago and it has a value today of $100000 ,what amount will you pay tax on when you withdraw it during your retirement years?

Which of the following is a tax-free benefit?

Saving $2000 per year from age 25 to 35 will give you more money at age 65 than saving $4000 per year from age 40 to 50,if all your funds grow at five percent.

Paul starts saving $1000 per year from age 25,while Harper starts saving $5000 per year at age 45.At a moderate rate of return of 7 percent,how much will each have at age 65?

Income from which of the following sources would have no impact on OAS clawback?

If you had lived in Canada for 30 years,had $50 000 income from various pensions and were old enough to receive Old Age Security benefits,you would qualify for seventy five percent of the maximum OAS benefit.

Which of the following is true about RRSPs?

If you qualify,the maximum withdrawal allowed under the Home Buyers' Plan (HBP)is

Which of the following is true regarding LIRA and locked-in RRSP accounts at age 71?

If you want to save $1 000 000 for retirement with $200 monthly deposits at eight percent interest compounded monthly,how long will it take?

What rate of return (compounded monthly)will you need,to reach a lump-sum total of $500000 in 20 years if you contribute $500 per month?

Old Age Security can be deferred for five years,which would increase ones benefit by an additional 36 percent.

If you have been in an employer-sponsored pension plan for three years and you leave your employer well before retirement

Danielle is 40 years old and has saved $150 000 in her RRSP.Her goal was to reach $1000000 by the time she turns 60.How much more will she have to save each year if she maintains a nine percent annual return on her investments?

The combination of Old Age Security and the Canada Pension plan provide sufficient income to support the retirement lifestyle of most individuals.

Once you are 'vested' in your company's pension plan,you can cash in the funds in if you decide to leave the company.

What was the approximate maximum annual CPP when applying at retirement age in 2017?

According to Statistics Canada,for many Canadians,the most important source of retirement income will be

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

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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

For retirees,the most important difference between CPP and OAS is that

In the past 10 years or so,many employers have shifted from defined-benefit to defined-contribution retirement plans to reduce their financial risk in funding employees' retirements.

If you invested $10 000 in an RRSP 30 years ago and it has a value today of $100000 ,what amount will you pay tax on when you withdraw it during your retirement years?

Which of the following is a tax-free benefit?

Saving $2000 per year from age 25 to 35 will give you more money at age 65 than saving $4000 per year from age 40 to 50,if all your funds grow at five percent.

Paul starts saving $1000 per year from age 25,while Harper starts saving $5000 per year at age 45.At a moderate rate of return of 7 percent,how much will each have at age 65?

Income from which of the following sources would have no impact on OAS clawback?

If you had lived in Canada for 30 years,had $50 000 income from various pensions and were old enough to receive Old Age Security benefits,you would qualify for seventy five percent of the maximum OAS benefit.

Which of the following is true about RRSPs?

If you qualify,the maximum withdrawal allowed under the Home Buyers' Plan (HBP)is

Which of the following is true regarding LIRA and locked-in RRSP accounts at age 71?

If you want to save $1 000 000 for retirement with $200 monthly deposits at eight percent interest compounded monthly,how long will it take?

What rate of return (compounded monthly)will you need,to reach a lump-sum total of $500000 in 20 years if you contribute $500 per month?

Old Age Security can be deferred for five years,which would increase ones benefit by an additional 36 percent.

If you have been in an employer-sponsored pension plan for three years and you leave your employer well before retirement

Danielle is 40 years old and has saved $150 000 in her RRSP.Her goal was to reach $1000000 by the time she turns 60.How much more will she have to save each year if she maintains a nine percent annual return on her investments?

The combination of Old Age Security and the Canada Pension plan provide sufficient income to support the retirement lifestyle of most individuals.

Once you are 'vested' in your company's pension plan,you can cash in the funds in if you decide to leave the company.

What was the approximate maximum annual CPP when applying at retirement age in 2017?

According to Statistics Canada,for many Canadians,the most important source of retirement income will be

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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