Authentic IFSE Institute Certification Exam LLQP Questions Answers

Larson’s recommendation for Julia to open a TFSA and invest in a money market fund is a strategy aimed at building a readily accessible emergency fund. This fund can help mitigate the risk of unforeseen expenses, which is a common financial risk. According to LLQP principles, creating an emergency fund within a TFSA provides tax-free growth and easy access to funds for unexpected costs, such as repairs, medical expenses, or temporary income loss​​.

Options A, B, and C are incorrect as they relate to specific risks not directly addressed by the creation of an emergency fund. A TFSA primarily provides liquidity for unexpected expenses rather than addressing job loss, bankruptcy, or leveraging.

To calculate net worth, we sum the couple’s assets and subtract their liabilities. The calculation is as follows:

Assets:

Leonard’s chequing account: $3,000

Ashley’s chequing account: $3,000

Leonard’s group RRSP: $40,000

Ashley’s car (Subaru WRX): $20,000

Total Assets:$66,000

Liabilities:

Ashley’s car loan: $10,000

Leonard’s student loan: $30,000

Total Liabilities:$40,000

Net Worth Calculation:

$66,000 (Assets) - $40,000 (Liabilities) = $26,000

The couple’s net worth is therefore $26,000, which aligns with LLQP methodologies for net worth calculations by considering all assets minus liabilities​.

The key feature of adefined contribution (DC) pension planis the focus on contributions and investment performance, rather than a guaranteed retirement benefit. Contribution amounts and investment options are fundamental characteristics of DC plans.

Exact Extract:

"In a Defined Contribution Pension Plan (DCPP), members’ benefits depend on the contributions made and the investment returns earned."

(Reference:Segfunds-E313-2020-12-7ED, Chapter 1.3.11 Group Plans​)