Choose the correct answer regarding pensions:

Question 32 options:

A LIF originates from an RSP which originates from an RPP

A RIF originates from a LIF which originates from an RSP

A LIF originates from an RPP which originates from a LIRA

A LIF originates from a LIRA which originates from an RPP

Harold has participated in his employer's defined contribution pension plan for the past ten years. He plans to retire at age sixty, which is still twenty years away. With regard to Harold's pension plan participation, which of the following statements are true?

1. Investment earnings in the early years will have a greater effect on Harrold's eventual pension than investment earnings in later years.

2. The sum of contributions made into the plan on Harrold's behalf and associated investment earnings will be used to purchase Harrold's pension income.

3. Investment earnings in the later years will have a greater effect on Harrold's eventual pension than investment earnings in early years.

4. Harold will be retiring at the normal retirement age

Question 34 options:

1 and 2

1 and 4

2 and 3

3 and 4

Regarding reverse mortgages, when aborrower uses a lump sum of funds to purchase an annuity generating cash flow for life, this is called a:

Question 36 options:

Reverse Annuity Mortgage

Line of Credit Reverse Mortgage

Fixed Term Reverse Mortgage

Variable Rate Reverse Mortgage

If an individual elects or misses to make the minimum annual repayment on their Life Long Learning Plan:

Question 39 options:

The taxpayer will need to include the amount into income for the current tax year

The taxpayer will need to include the amount into income for the current or next tax year

A penalty equal to the prescribed rate of interest set by the CRA will be levied onto the payment amount

A penalty equal to the prime rate plus the prescribed rate of interest set by the CRA will be levied onto the payment amount

An impaired annuity is designed to:

Question 40 options:

provide the annuitant with a higher amount of income than a regular annuity

provide the annuitant with a lower amount of income than a regular annuity

recognition of lifestyle ailments such as heavy smoking or drinking

recognize the annuitant's lengthened life expectancy