Todd is a financial planner who is meeting with his clients Nancy and Drew both 60 years of age. Although Nancy has no plans to retire before age 70, Drew has had some health issues recently that will require him to retire this year. In order to increase their liquidity, they have decided to take the commuted value of his defined benefit pension. Which of the following should Nancy and Drew be most concerned about with taking the commuted value of the pension?

1. Only a portion of the commuted value will be paid to a LIRA

2. There will continue to be uncertainty with his employer being able to live up to its future obligations

3. Drew will be assuming the full investment risk of his retirement assets

4. Depending on investment performance, the commuted value may be able to produce increased income benefit

1. Duty of Loyalty to the Client
2. Professionalism
3. Objectivity
4. Diligence

1. 1. a capital dividend
   2. a non-eligible dividend
   3. an eligible dividend
   4. a capital gain

Mark wants to leave a sum of money to each of his minor grandchildren upon his death. He wants the investment income to be used to support each of them until they reach the age of 18 at which point he wants the capital distributed. Mark should leave the money to:

Frank, age 66, had an Individual Pension Plan (IPP) set up 10 years ago with his employer where he is president of the company. He will be retiring next year and will be converting his IPP to a Registered Retirement Income Fund (RRIF) to provide him with retirement income. His IPP $1,000,000 currently holds $250,000 in bonds, $400,000 in stocks and $350,000 is a globally diversified equity fund. Based on these holdings, Frank’s primary retirement objective is to:

Antonio owns a whole life policy that has a face value of $300,000, a cash value of $19,000, and ACB of $5,000, and an annual premium of $2,200 due in July of each year. The insurance carrier declared a $900 dividend in June, which Antonio elected to leave on deposit and earn interest. With regard to this election, which of the following statements is true?

Benjamin, age 57, is looking for a CFP professional to review his investment holdings within his RRSP. Which factor would be the most relevant in the evaluation?

1. His current cash flow requirements

2. His investment experience

3. His retirement cash flow requirements

4. His risk tolerance

When determining the value of a business, which of the following factors would be excluded from the valuation of the business?

David is the owner and operator of a successful software company and is considering the use of an estate freeze. He plans to set up a trust to hold common shares (non-voting) on behalf of his two minor children and he will take back preferred shares that will be voting a retractable. The implementation of this estate freeze:

Twenty years ago, Jason purchased a universal life insurance policy that has a face value of one million dollars. Jason has decided that given his tight cash flow he doesn’t want to pay the premiums anymore. However, he still wants to maintain some amount of the coverage in the policy. Which of the following non-forfeiture options are available to him if he decides to stop paying the premiums?

1. If the policy has a cash value, the insurance company could provide him with a policy loan to continue paying the premiums

2. Withdraw the full amount of the cash value in the policy and cancel the policy

3. He could exchange the cash value for a fully-paid up policy with a smaller death benefit

4. He could take out a policy loan equal to the cash value of the policy