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20 Poppy is the sole proprietor of Ladies Tees, a tadies' fashion store. She wants the monthly earnings from the shop to cover the expenses of new inventory space rental, utilities, advertising, part time helaas well as provide an income for herself Poppys Income from the store must be adequate to support her and her three school age children. Poppy wants to start putting away 10% of her salary as a pre-authorized monthly contribution to a plan that will provide her with a retirement income. She would describe herself as not being very risky with her money. Her advisor has recommending a deferred annuity, which meets her risk profile. What is the principal risk of an annuity? 1. The amount of the pre-authorized monthly contribution is fixed and must be paid, even if Poppy's store is losing money and she can't pay herself any income The annuity rate is fixed and cannot increase even if annuity rates go up in the future. An annuity allows Poppy some flexibility in the use of the capital, but will provides security do Poppy will not be able to pet out of the pre-authorized payment plan even if she wants to switch to a different investment C 21 Jerry is 65 years old and recently retired He is married and his wife is 64 years old. Jerry wishes that he and his wife will have sufficient income for the rest of their lives. You suggest that they can buy a joint and last survivor life annuity that will provide them with income for their remaining years. Jerry tells you that while he appreciates the suggestion for the purchase of the annuity, he is worried as the payment will De fixed and not foble and that it will not take care of inflation that erodes purchasing power. Which of the following options will meet Jerrys requirements? 1 O 50% of his funds to buy a joint and last survivor annuity and 50% of his funds invested in a segregated fund An insured annuity An indexed joint and last survivor fe annuity 50% of his funds to buy a joint and last survivor annuity and 50% of his funds invested in an equity fund d is the sole proprietor of Ladies Tees, a ladies' fashion store. She wants the monthly earnings from the vide an income for herself. Poppy's income from the store must be adequate to support her and hert ntribution to a plan that will provide her with a retirement income. She would describe herself as no file. What is the principal risk of an annuity? The amount of the pre-authorized monthly contribution is fixed and must be paid, even if Poppy's st The annuity rate is fixed and cannot increase even if annuity rates go up in the future. An annuity allows Poppy some flexibility in the use of the capital, but still provides security. Poppy will not be able to get out of the pre-authorized payment plan even if she wants to switch to Jerry is 65 years old and recently retired. He is married and his wife is 64 years old. Jerry wishes that he last survivor life annuity that will provide them with income for their remaining years. Jerry tells you th fixed and not flexible and that it will not take care of inflation that erodes purchasing power. Which of t a. O 50% of his funds to buy a joint and last survivor annuity and 50% of his funds invested in a seg b. O An insured annuity c. O An indexed joint and last survivor life annuity 50% of his funds to buy a joint and last survivor annuity and 50% of his funds invested in an eq d