LLQP Segregated Funds & Annuities · Component 1.3 · 35% of the exam
A young client with high income and maxed registered plans has a need for:
- AMore RRSP contributions, since a high earner benefits most from the deduction
- BNothing more, since a client with full registered plans has done all that can be done
- Tax-efficient non-registered growth, segregated funds for estate features, or permanent insurance
- DGICs only, since guaranteed interest is the safest home for money that cannot go into registered plans
Correct answer: C) Tax-efficient non-registered growth, segregated funds for estate features, or permanent insurance
Beyond registered room, efficiency comes from the character of income and insurance structures.
Why the other options are wrong
- ARegistered room is already used up.
- BSurplus savings still need a tax-efficient home.
- DGIC interest is tax-inefficient for a high earner.
Exam tip
Registered maxed → capital gains focus, seg funds, permanent insurance.
Common mistake
Directing a high-income client into interest-heavy non-registered funds.
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.