Before the End of the Year in Which You Have

question 22

Multiple Choice

Before the end of the year in which you have your 71st birthday

• A)you must transfer your RRSP assets to a RRIF.
• B)the assets inside your RRSP must be converted to cash and placed in a RRIF.
• C)you must pay tax on the profits sheltered in your RRSP.
• D)you must start annual withdrawals of 18 percent of the value of your RRIF.

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Definitions:

Intrinsic Value

Intrinsic value is the inherent, true value of an investment, regardless of its current market price.

Dividends

Distributions of earnings paid to shareholders by a company, typically out of its profits.

Market Value

The current value of an asset or company based on market prices, reflecting what the market is willing to pay for it.

Common Shares

Equity securities that represent ownership interests in a corporation, giving holders voting rights and a share in the company's profits via dividends.