Your client, Ricardo, contacts you to discuss his investment portfolio. Ricardo has invested diligently and has accumulated
Question:
Your client, Ricardo, contacts you to discuss his investment portfolio. Ricardo has invested diligently and has accumulated a sizeable portfolio of segregated funds. He is now preparing for retirement and would like to begin drawing an income from his investments. However, while Ricardo followed a detailed plan for saving and investing, he has no plan for withdrawal. When Ricard asks you about drawing an income from his segregated funds, which of the following is the CORRECT response that you should provide to Ricardo?
a)Guaranteed Minimum Withdrawal Benefit (GMWB) plans can provide an income stream but do not offer a maturity guarantee like segregated funds.
b)Guaranteed Lifetime Withdrawal Benefit (GLWB) plans can provide a guaranteed income stream, with both maturity and death benefit guarantees.
c)One key disadvantage of Guaranteed Minimum Withdrawal Benefit (GMWB) plans is that the stated guaranteed withdrawals cannot be exceeded.
d)One key disadvantage of Guaranteed Lifetime Withdrawal Benefit (GLWB) plans is that the stated withdrawals can decrease due to poor investment performance.
Systems analysis and design
ISBN: 978-0136089162
8th Edition
Authors: kenneth e. kendall, julie e. kendall