LLQP Segregated Funds & Annuities · Component 1.3 · 35% of the exam
A client's need for 'simplicity' in retirement income can be addressed by:
- Consolidating accounts, using a single RRIF or annuity, and automating withdrawals
- BTrading frequently so the client always holds the best-performing fund
- CMulti-layered structures that optimize every tax and estate outcome regardless of complexity
- DSpreading accounts across several institutions so that no single failure affects the client
Correct answer: A) Consolidating accounts, using a single RRIF or annuity, and automating withdrawals
Cognitive decline and the burden of management are real retirement risks. Simplification is a legitimate need.
Why the other options are wrong
- BTrading adds burden and risk.
- CComplexity is the problem, not the solution.
- DFragmentation increases complexity.
Exam tip
Simplify for aging clients: consolidate, automate, annuitize part.
Common mistake
Building an intricate plan the client cannot manage at 85.
What this tests
CISRO competency component 1.3 — 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
Timed sets weighted like the exam, and review of every question you miss. Free to start.