Page |1

SEGREGATED
Ⅳ-PAPER
 Page |2

1. Sanvi recently inherited money when her grandfather died and bequeathed to Sanvi
many of her assets. Sanvi has heard that real estate investments provide a good
return and is looking to invest in real estates.
What risks should she be aware of before finalizing her decisions?
a. Liquidity risk, interest rate risk on mortgages, and inflation risk
b. Liquidity risk, market risk, and interest rate risk on mortgages.
c. liquidity risk, default risk, and market risk
d. Inflation risk, equity risk, and market risk

2. Mike is 64 years old and is married to Celine. He is member of defined benefit

pension plan (DBPP) offered by his employer and has named his daughter as a
beneficiary. Mike is planning to retire and wants to know about the DBPP benefits
after retirement. Which of the following information will you not provide Mike?
a. Mike can choose to receive the payments in the form of life annuity.
b. Mike can choose to transfer the commuted value into lock-in-account.
c. If mike dies, his daughter will receive a death benefit.
d. If Mike dies, Celine will receive at least 60% of the pension

3. Tony received $300,000 after his father’s death as a death benefit from his father’s
life insurance policy for which he was the named beneficiary. He wants to purchase a
condo with the proceeds with the intention of renting it out for the constant flow of
monthly income. Which of the following risk is Tony most likely to face?
a. Market risk
b. Liquidity risk.
c. Inflation risk
d. Equity risk

4. Alyssa meets with her insurance agent to purchase a segregated funds contract with
the deposit of $20,000. Based on the needs analysis, the agent makes a
recommendation and informs Alyssa that the investment involves an MER of 4.2%.
Alyssa wants to know thew impact of MER on her investments. The agent explains
that MERs:
a. change based on fund’s performance
b. reduces the return on investment.
c. Does not affect the return on the investment.
d. Increase the return on investment.

5. Priscilla inherits $200000 from her father, and she wishes to invest this amount in an
investment product that provides her with a steady flow of guaranteed monthly
income. She has no investment experience and prefers not to bother with monitoring
the investment. However, she wants the payment to keep up with inflation. Which of
the following investments is not suitable for priscilla?
a. An index annuity contract
b. A guaranteed investment certificate.
 Page |3

c. An exchange traded fund.

d. A variable interest savings account.

6. Scott and Freya are the couple with the son Todd, who is severely disabled. They
open a registered disability savings plan (RDSP) to save towards the long-term
financial needs of their son. Which of the following is an eligibility requirement for
tool to be a beneficiary of this RDSP?
a. He should have received disability assistance payments.
b. He should have social insurance number.
c. He should be within the age group of 18 to 40.
d. He should have resided in Canada for more than five years.

7. Dawson is 67-year-old pensioner who is receiving OAS, CPP, and GIS benefits. His wife
Mia is 63 years old and moved to Canada eight years ago. She has never
been employed in Canada and has not contributed to any pension plan. Which
of the following will Mia be eligible to receive?
a. The OAS pensions a.
b. The CPP benefits
c. The GIC benefits
d. The allowance

8. Yonas buys a life annuity naming himself and his wife. Edna as an annuitant. He adds
on 15-years guarantee permit and his daughter Amara as the beneficiary. Edna and
Amara are alive when Yonas dies 10years after the purchase of his life annuity. What
will happen to the annuity following Yunis death?
a. Amara will receive the death benefit of the annuity as the named beneficiary
b. Edna will receive the annuity payments for the rest of her life
c. Edna and Amara will receive the annuity payment until Edna’s death
d. Edna will receive the annuity payments for the next five years

9. Lillian invested $40000 in a segregated contract that matures today with a

market value of $67000. The contract offers a death benefits and maturity guarantee
of 75%. Lillian decided to renew her contract as she does not need the funds right
now.What will be Lillian’s initial contribution amount to the contract upon reward.

a. $50,250
b. $67,000
c. $40,000
d. $30,000

10. For many years Nola has tried active investing. Her experience with investment has
led her to believe that it is difficult to beat the market. Therefore, she now believes in
passive investing After Nola express her idea to you, which of the following funds do
you recommend her?

a. Index fund
 Page |4

b. Equity fund
c. Fund of funds
d. Dividend funds

11. Malik runs his own business, and his income fluctuates. When he has extra money,
he mostly invests in stocks so far, he has been lucky and had good returns. He
currently holds the following investments: • Penny Stocks • Equity Funds • Corporate
Bonds 3
How would you categorize malik’s risk tolerance?
a. Low
b. Medium
c. High
d. Low To Medium

12. Russel is completing a segregated fund contract for his client, Celine. She is
purchasing a segregated fund to held in her LIRA account. Celine has provided him
with a cheque of investment, her legal name, address, phone number and social
Insurance number. What other personal information is required to complete the
application?
a. Gender
b. Medical History
c. Age
d. Occupation

13. Ashraf has had considerable success in investing with mutual funds. He sold his
investments, this year incurring his capital gains. Market experts say that markets are
likely to decline this year. He is unsure whether he should purchase more mutual
funds or to take his friends advice and buy segregated funds. Why might segregated
funds be a better investment for Ashraf in the coming economic downturn.
a. The investments held within segregated fund are usually more volatile than
investments held by similar mutual funds.
b. Segregated funds have lower MERs than mutual funds
c. If he wants to sell the investment later this year segregated funds promises
guaranteed amount whereas mutual funds do not
d. Segregated fund guarantees will protect Ashraf’s investments, whereas
losses within mutual funds cannot be protected.

14. Kelly is 50 years old and single. She lived with her sister Tina, and ten-year-old niece
Janice. Kelly owns a bakery and had obtained a loan recently for business needs. She
spends a maximum of $6000 a month. Kelly purchased a $200,000 life insurance has
created a will for the purpose. Kelly invested $200,000 in a deferred life
annuity contract which pays an income in 15 years She has $55,000 in her TFSA
Which of the following needs of Kelly should be addressed first?
a. Need for retirement Plan 4
b. Need for estate plan
c. Need for emergency fund
 Page |5

d. Need for creditor proofing

15. Lily is 58 years old and single. She was never married and will be retiring at the age 65.
She earns a high income and has been living in Canada for the past 30 years.
She wishes to purchase an in-annuity contract that pays after retirement period
two determine her monthly income needs from the annuity. Lily's agent needs to
know her other sources of income. Which of the following government retirement
pension plans should the agent take into consideration for Lily?

a. CPP, OAS and GIS

b. OAS and CPP
c. OAS, CPP and the allowance
d. CPP and GIS

16. Judson Deposited $230,000 into an immediate joint & last survivor annuity
contract naming himself and his wife. Lyra as the joint annuitant. He designates his
daughter Aspen as the beneficiary of contract upon whose death will Aspen receive
the death benefit.
a. Right after Judson’s Death
b. Either Judson or Lyra
c. Both Judson and
Lyra
d. After Judson’s death and lyra’s consent

17. Kenzie received 15,000 bonus check from his employer as recognition for meeting his
sales target for the second part of the year when can the spoke with his advisor
about investing the bonus, his advisor explains the differences in the sale
charges and management expense fees. Not being very investment savvy Kenzie
calls his friend Lennon who works in the investment industry for an explanation
of differences between sale charges and management expenses. Which of the
following explanation when Lennon provide about the main difference between
the sale Charges and manage management?

a. Management expenses charged annually

b. sales charges cover the fund administration expenses
c. There is no Difference
d. Management expense ratios do not affect investor returns

18. Hugo, aged 55, deposited $210,000 into a 10-year term immediate energy contract
add had received monthly payments off $1750 for the past three years. Hugo died
last weekend he had named his son Steven as the beneficiary to the annuity contract
with the capital protection guarantee what kind of payment can Steven expect
as the beneficiary of contract?
a. A death benefit of $ 210,000
b. A monthly payment of $1,750 for seven years
c. A lump-sum payment of $178,500
d. A lump-sum payment of $147,000
 Page |6

19. Simon and Remi add attiring in five years and would like to prepare their finances
Remi got a promotion and now makes a lot more than Simon they know that as a
result she will receive a much higher retirement income. She has asked her financial
advisors by the two come up with a solution that will help then use their taxes in
retirement which of the following will be the best help Simon and we meet now?
a. They can OAS benefits
b. They can assign their CCP benefits
c. They can open a spousal RRSP for Simon
d. They can split their pension income now

20. Niran contributed to an individual RRSP, and he recently changed his job. His
new employer or further GRRSP to all the companies’ employees and Niran is
automatically enrolled into the group plan. While comparing his individual RRSP to
the GRRSP need and is likely to notice that the GRRSP
a. Contributions are not deductible for the employees
b. offers fewer investment choices than RRSP
c. contributions are locked in until retirement
d. requires higher fees RRSP

21. Which of the following must be reported by an agent to FINTRAC under the protocols
of crime (Money Laundering) and terrorist financial act?
a. Client making one or more deposits totaling $10,000 or more into an
account within a 24-hour Period.
b. A family member of a politically exposed foreign person depositing $9000 into
the account
c. Client new transfer of $100,000 from registered account to a new registered
account
d. client depositing $6000 cash in the account

22. Judy is 65 years old and covered under deferred profit-sharing plan offered by her
employer. She is retiring and able to determine the amount income available to her.
She would like to know what happens to DPSP saving upon retirement. Judy can do
all the following except:
a. transfer into RRSP
b. cash out the value of the plan
c. By a term or life annuity
d. Transfer into another RPP

23. Quintin has just inherited $200,000 from her uncle and intents to invests it. She has
no immediate need for the funds but would like to put down payment on a condo in
three years when she has finished school. She would like to take a lower risk in her
investment and invest partially in fixed income securities.
a. Equity Funds
b. Real estate Funds
 Page |7

c. Speciality Funds
d. Bonds funds

24. Remy runs his own business, and his income fluctuates when he has extra money, he
invests it in his segregated funds. So far, he has been lucking and had good returns.
But he is concerned about the risk of his portfolio. He currently holds the following
investments in his segregated fund: Fund A (Standard deviation 12) Fund B (Standard
deviation 3) Fund C (Standard deviation 17) Fund D (Standard deviation 9)
Given Remy’s situation which fund would you consider to be too risky for him?
a. Fund B
b. Fund A
c. Fund C
d. Fund D

25. Sylvester owns recruitment agency, and his employers are not covered under
any group pension plan in order to attract and retain employees he wished to
introduce a group plan that meet his employee’s savings and investment needs.
As the plan sponsor, Sylvester is willing to make 100% contribution to the planet
prefers to invest in a plan that offers guarantee income to its members after
recruitment group plans is the most suitable for Sylvester
a. DBPP
b. DPSP
c. PRPP
d. DCPP

26. Richard is completing his application form to open a non-Segregated funds account
with the help of his agent. As the contract owner. Richard will be required to:
a. Name himself as the annuitant
b. meet specific age requirements
c. fund the account
d. provide his social insurance number

27. Hallie is a 59 year old divorcee who girl currently is employed and is planning to retire
next year she lives by herself and it is solely dependent on her employment income
Hallie is concerned about her income to meet their daily expenses during the next
five years post retirement until she is eligible for the retirement income she
has some savings which she wishes to invest in a guaranteed contract which of the
following recommendations would you provide?
a. a term annuity to age 50
b. An insurance annuity contract
c. A 5-year Term annuity contract
d. A shortened life annuity contract
 Page |8

28. Bethany age 30 accepts your recommendation to invest $30,000 for her savings in a
segregated fund held in a registered retirement saving plan RRSP. Which of
the following statement about Bethany’s account is true?
a. she can transfer the ownership of the contract
b. she can name her spouse to be their annuitant of the contract
c. she must be the owner and the annuitant of the contract
d. she can use the contractor’s collector to obtain loan

29. Izara holds LIRA invested in a segregated fund contract. The LIRA holds over $300,000
which was the accumulated value of her DCPP with a previous employer she turned
71 this year and her agent informs her that she has to move the funds out of the LIRA
before December 31 this year. Izara has all the following options to transfer funds in
LIRA, except:
a. Transferring the funds to LRIF account if such an account exists in her
province of residence
b. Transferring the funds to RRIF
c. transferring the funds to LIF
d. Using the funds to purchase a life annuity

30. Frieda is employed and is planning to start investing. She meets with her insurance
agent to discuss suitable investment options. The agent begins by creating an
investor profile and requires Frieda to provide some documents to review her assets.
Which of the following documents provide information about Frieda's personal
assets?
a. Credit card statement
b. RRSP statement
c. Line of credit statement
d. Mortgage statement

31. Mike is an independent agent who represents several insurers. He recommends

a product to a new client who wishes to sponsor a group plan for the
company's employees. The client approves Mike's recommendation. Mike had
received an advance commission on the sale of the insurance product from the
insurer. Mike is obligated to disclose to the client about all of the following, EXCEPT:
a. details about all the insurers with whom Mike worked so far.
b. details about the insurer whose product the client purchased.
c. existing financial arrangements between him and the insurer.
d. the commission advance he received from the insurer.

32. Sam and Emma are a married couple who are both 64 years old. They are
both employed and will be retiring next year. Apart from their employment income,
they own a rental property that provides $3,400 per month. Emma plans to provide
online art classes for kids after retiring. They meet with their insurance agent to
analyse their
 Page |9

retirement income needs. Their estimated income after retirement is $6,000

per month from all sources. Their monthly expenses are estimated to be around
$4,500 based on their current lifestyle. Which of the following should the agent keep
in mind when determining Sam and Emma's retirement income needs?
a. Emma's eligibility for the Allowance
b. Spending should be based on gross household income
c. Spending should be based on after-tax income
d. Sam's eligibility for worker's compensation benefits

33. Alden runs his own business as a sole proprietor. When his business was doing well,
he had set up a non-registered segregated fund and made regular deposits to
the contract. The fair market value of his account is $300,000 today. Due to a
downturn in the economy and declining demands for his products, Alden's income
has reduced substantially, and he is not able to pay his creditors. He lists the
following assets:
• House in his wife's name
• RRSP account- into which he contributed two years ago with his wife as the
beneficiary and a fair market value of $200,000
• Non-registered segregated fund account- with his wife as the beneficiary and a fair
market value of $300,000
• Mutual fund account-with his wife as the beneficiary and a fair market value
of $100.000

Which of these assets is most likely to be seized by Alden's creditors?

a. RRSP account
b. Mutual fund account
c. Segregated fund account
d. House

34. Aditi is working with a client who has no investment experience and wishes to invest
her savings in segregated funds. Aditi created an investor profile and had a
better understanding of the client's situation and needs. It is now time for her to
conduct a fund analysis and make a recommendation. To which of the following
should Aditi mostly focus on before making a recommendation?
a. Rate of commission
b. Product availability
c. Rate of return
d. Client suitability

35. Agatha, age 30, is discussing the purchase of a segregated fund with her
advisor. Agatha has saved $10,000 and wishes to continue to save by contributing
$400 a month to the fund. However, she wants to keep fees as low as possible. She
expects fund growth and foresees no need for this money until retirement.
 P a g e | 10

Which of the following products should Agatha's advisor advise her to buy?
a. Money market fund, with 75/75 maturity and death benefit guarantees with
the ability to make annual lump sum deposits
b. Money market fund, with 75/100 maturity and death benefit guarantees with
periodic deposits
c. Equity fund, with 100/100 maturity and death benefit guarantees with
the ability to make annual lump sum deposits
d. Equity fund, with 75/75 maturity and death benefit guarantees with periodic
deposits

36. Arnold is 75 years old, and he lives by himself in his house. He has no children and his
wife passed away six months ago. He likes to travel and manages the
monthly expenses using his retirement benefits with nothing left for savings. He
owns a $100,000 life insurance policy with his favourite charity named as the
irrevocable beneficiary. Which of the following needs of Arnold should be addressed
first?
a. Need for estate planning
b. Need for investment management
c. Need for creditor proofing
d. Need for emergency fund

37. Ava is in the process of setting up a spousal Registered Retirement Savings Plan
(RR5P) to hold segregated fund investments. Her husband, Adrian, is
named as the contributor. Which of the following is a requirement to set up a
spousal RRSP for Ava?

a. Ava must be the owner and the annuitant of the account. Adrian must be the
contributor.
b. Adrian must be the owner of the account and the contributor. Ava must be
the annuitant.
c. Ava must be the owner of the account. Adrian must be the annuitant
and contributor.
d. Adrian must be the beneficiary of the account. Ava must be the annuitant

38. Bashira is thinking of investing in bonds and wants to know the kinds of risks she
faces with such an investment. What are the risks faced by a bond investor?
a. Inflation risk, credit risk, market risk, and reinvestment risk
b. Interest rate risk, inflation risk, market risk, and liquidity risk
c. Interest rate risk, inflation risk, industry risk, and liquidity risk
d. Inflation risk, interest rate, credit risk, and reinvestment risk
 P a g e | 11

39. Keanu is nearing retirement and is considering buying an annuity to fund his
retirement. He is 64 years old, and his wife is 55. He is concerned about there being
enough money since his wife is much younger than he is and will likely live longer.
Keanu intends to work freelance for five more years. He wants an annuity that will
provide for both of them and will provide the most income, but he does not want it
to start until he has completely stopped working. Based on his needs and
objectives, which type of annuity would you recommend to Keanu?

a. Immediate joint-and-last survivor annuity, payable monthly

b. Deferred joint-and-last survivor annuity, payable annually
c. Term annuity-to-age-90 will provide income
d. Deferred single term annuity with his wife as the beneficiary

40. Hazel wants to invest in both an equity mutual fund and a fixed-income mutual fund.
She wants to know the risks she will face with these investments.
What does her financial advisor tell her?

a. Equity fund: market risk and industry risk; Fixed-income fund: interest rate
risk
b. Equity fund: interest rate risk and credit risk; Fixed-income fund: industry risk
and market risk
c. Equity fund: interest risk and inflation risk; Fixed-income fund: industry risk
and credit risk
d. Equity fund: market risk and credit risk; Fixed-income fund: interest rate risk
and market risk

41. Sylvie is a client of yours. She wants to know which of the following are
unique advantages of investing in a segregated fund rather than a mutual fund.
• Maturity and death benefit guarantees
• Automatic reinvestment of allocations/distributions
• Resets
• Creditor protection
• Bypass of the probate process
• Diversification
What do you tell Sylvie?

a. Maturity and death benefit guarantees, automatic reinvestment

of allocations/distributions, bypass of the probate process, diversification
b. Maturity and death benefit guarantees, resets, creditor protection, bypass
of the probate process
c. Maturity and death benefit guarantees, resets, creditor
protection, diversification
d. Maturity and death benefit guarantees, automatic reinvestment
of allocations/distributions, resets, and creditor protection
 P a g e | 12

42. Evan invested $30,000 in a segregated fund contract a few years ago and has been
making annual deposits to the account regularly. He is approaching retirement and
wishes to receive regular annual payments after retirement for as long as he lives to
manage his expenses instead of a lump-sum payment at contract maturity. Which of
the following benefits can be added to Evan's existing contract to meet his needs?
a. Guaranteed Lifetime Withdrawal Benefit
b. Guaranteed Minimum Withdrawal Benefit
c. Guaranteed Income Supplement Benefit
d. Guaranteed Retirement Income Benefit

43. Natalie is 60 years old and is planning to retire 10 years from now. She anticipates
that after that she will need the funds invested in her segregated funds. The
segregated fund investment provides 75% maturity and death benefit guarantees
and will mature in a few days. The contract calls for an automatic reset. Natalie does
not need the funds right away and is happy with the performance of the fund she has
invested in. She is considering renewing the contract for another 10 years. She asks
her advisor if there is anything in the contract that she must change if she renews it
for another 10 years.
What does Natalie's advisor tell her?
a. She should opt for voluntary resets in place of automatic resets to avoid an
unwanted reset of her maturity guarantee.
b. She should choose automatic resets for the maturity guarantee and voluntary
resets for the death benefit guarantee.
c. She should not make any changes to her contract since she is happy with the
performance.
d. She should make a fund switch to benefit from a new 10-year maturity
guarantee.

44. Syed has invested his RRSP savings of $30,000 in segregated funds. He needs funds to
pay for medical expenses and applies to withdraw $10,000 from the
investment account.
Which of the following outcomes can be expected with regard to this withdrawal?

a. Syed can withdraw funds without being taxed as his funds are held in a
registered account.
b. Syed will receive 100% of the withdrawal without any deductions but will be
taxed later in his annual tax return.
c. A portion of the requested amount will be withheld, and Syed should declare
only the portion he received for tax purposes.
d. A portion of the withdrawal will be subject to withholding tax which will
later be reconciled on Syed's annual tax return.
 P a g e | 13

45. Indra is 60 years old, and she has been contributing to a DCPP for the past several
years. She is not planning on retiring for the next ten years but would like to be able
to access her savings in case of an emergency. It is possible to unlock funds under all
of these circumstances, EXCEPT when:
a. the member is no longer a Canadian resident.
b. there is proven financial hardship.
c. the life expectancy of the contributor is shortened.
d. the balance of the account is more than a specified sum.

46. Hema is the beneficiary of a segregated fund maturing a few weeks from now. Her
mother, Riya, made the investment a few years ago. Since then, she has
become incapacitated. Riya named her sister, Tina, as the power of attorney
for all of her property before she became incapacitated. Riya's husband, Ragu, is
responsible for her health care. The fund has a 100% maturity and death benefit
guarantee.
Who will claim the proceeds when the fund matures?

a. Tina, as the power of attorney for the property.

b. Hema, as the beneficiary.
c. Riva, as the contract owner.
d. Ragu, as Riya's spouse responsible for her care.

47. Farah turned 65 this year and has begun receiving her Canada Pension Plan (CPP) and
Old Age Security (OAS) benefits. She expects to survive her retirement by
supplementing her annual income of about $40,000 that she expects to receive from
her CPP, OAS, and benefits from her company's defined benefit plan with
withdrawals from her Registered Retirement Income Fund (RRIF) account. She asks
you about the taxation of the income she will receive from CP and OAS. As Farah's
financial advisor, what do you tell her?
a. She does not have to pay taxes on OAS benefits because it is a tax-free benefit
given to all Canadians.
b. She does not have to pay taxes on her CPP benefits because she had
contributed to it.
c. She has to pay tax on CPP and OAS benefits.
d. She does not have to pay tax on CPP and OAS benefits.

48. Arnold wants to invest $300,000 in segregated funds and for this investment to be
protected from claims by his creditors. Which of the following individuals should NOT
be designated as the beneficiary?
a. His mother
b. His granddaughter
c. His brother
d. His son
 P a g e | 14

49. Iman is helping his client, Shanaz, complete her application form to invest in a
segregated funds contract. He thoroughly explains all the features of the contract to
make sure Shanaz understands everything about her investment before signing the
application. He also prepares the reason-why letter during the process. Which of the
following information should Iman include in the reason-why letter?

a. Details about the beneficiary and their relationship with the client
b. Suitability of the recommended product based on the needs identified
c. Explanations for the incomplete sections in the application form
d. Detailed information about the funds chosen and their performance

50. Varun, who is 65 years old, is retired and planning to spend his retirement traveling.
He lives alone and is receiving a monthly pension which he feels is insufficient. He
sold his property and earned a profit of $160,000 which he plans on investing
in a guaranteed investment product that provides him with supplemental income.
Which of the following recommendations would you make?
a. A deferred life annuity
b. A15-year term annuity
c. An immediate life annuity
d. An accumulation annuity

51. Ten years ago, Kim invested $100,000 in a non-registered segregated fund with
a maturity guarantee of 75%. The investment is currently worth $70,000 and is going
to mature in a few days. She decides to renew her contract and approaches her
insurance agent.
Which of the following statements is true about Kim's contract renewal?
a. The renewal amount will be the market value of $70,000.
b. The renewal amount will be the initial investment of $100,000.
c. The new maturity date will be based on the renewal approval date.
d. The new maturity date will be based on her current age upon renewal.

52. Travis and Nicole have come to you, their advisor with various financial documents.
Using the information, they have provided, calculate their net worth.

Financial Amount
Nicole's net income $56.000
Travis' net income $42,000
Travis' RRSP $125.000
Car Loan $23,000
Annual expenses $102,000
Nicole's TFSA $26.000
Travis' annual contribution to his RRSP $5,000
Home $400.000
Monthly car loan payments $349
 P a g e | 15

Vehicles $50,000
Mortgage on their home $258,000
Monthly mortgage payments $569
Nicole's life insurance policy CSV $11,400
a. $271,482
b. $98,000
c. $612.400
d. $331,400

53. Alan is covered under a deferred profit-sharing plan (PSP) offered by his employer.
Azlan is approaching retirement and wants to know his options with regard to the
funds in the DPSP. When Azlan retires, he can do all of the following, EXCEPT:
a. receive funds as a lump sum.
b. purchase an annuity.
c. transfer funds to an RRIF.
d. transfer funds to a LIF.

54. Jenifer is widowed. Her husband died a few years earlier and left sufficient funds for
the family to lead their desired lifestyle. She has a son and a daughter studying at
university. Jenifer was named the annuitant and became the owner of the
segregated fund of $125,000 when her husband died. The segregated fund
investment is maturing shortly, and the funds market value exceeds the guarantee.
Jenifer tells her advisor that she needs to invest the $125,000 in an account that will
allow some growth, and where she can withdraw funds as required to meet her
children's college expenses. What type of fund should her advisor recommend that
Jenifer invests in?

a. Market-linked Guaranteed Investment Certificates

b. Current segregated fund contract
c. Balanced mutual funds
d. Another segregated fund based on fund-analysis