LLQP Segregated Funds & Annuities · Component 1.1 · 35% of the exam
A client's expected retirement age matters to the profile because:
- AIt determines who should be named as beneficiary, since the designation depends on retirement timing
- BIt sets the fund's fees, since insurers price contracts by the number of years to retirement
- It sets the accumulation horizon and when income must begin
- DIt does not matter, since retirement age can be changed at any time without affecting the plan
Correct answer: C) It sets the accumulation horizon and when income must begin
Retirement date is the anchor of the horizon and the income plan.
Why the other options are wrong
- ABeneficiary choice is separate from retirement timing.
- BFees are product-based, not tied to the client's retirement date.
- DRetirement age is central to the horizon and the income plan.
Exam tip
Retirement age → horizon, maturity dates, income timing.
Common mistake
Setting a maturity date beyond when the client will need the funds.
What this tests
CISRO competency component 1.1 — Assess the client's needs and situation — which is weighted at 35% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 1
- The first step before recommending a segregated fund or annuity is to:
- A client's 'time horizon' for an investment is:
- 'Risk tolerance' in an investor profile refers to:
- A client says he wants 'high returns with no risk of losing money'. The agent should:
- Investment objectives are commonly classified as:
- Why is the client's marginal tax rate relevant to a segregated fund recommendation?
Practice the whole Segregated Funds & Annuities module
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