A flexible premium annuity allows the 'annuitant', or the owner of the annuity, to make … An annuity is a retirement savings product. Who assumes the investment risk in a variable annuity contract? VAs, blue chip mutual fund portfolios, ETFS & ETNs are all tied to market performance in some way and have risk characteristics that would not align in terms of suitability for this client. A prospectus for a variable annuity contract: 1. He elects a lump sum settlement. Using an annuity to fund a qualified retirement plan: [D]may be suitable because the annuity provides a guaranteed lifetime income during retirement and because of the death benefits provided. A Registered Representative sold a deferred variable annuity to an unmarried 18 year old high school senior who had just inherited $30,000. The # of annuity units becomes fixed when the contract is annuitized; it is the value of each unit that fluctuates. [B]The value of the accumulation units is used to determine the number of annuity units. Many variable annuities invest the separate account in mutual funds. Owners of variable annuities, like owners of mutual fund shares, may vote on changes in investment policy and for an investment adviser. The # of VA accumulation units can rise during the accumulation period when additional units are being purchased. The individual already making the max retirement acct contributions, with cash to invest, would be most suitable for a VA recommendation. This ratio helps ordinary shareholders and banks monitor the efficiency in the use of their funds. Variable annuity companies retain dividends, but the owner of the variable annuity … Please sign in to share these flashcards. The SEC requires that all of the charges under variable annuities be described in great detail in the prospectus that is offered to each variable annuity … D) a VA contract is subject to fluctuating values due to market fluctuations in the underlying separate accounts. Several years ago, a client had a few investment options and the decision was made that the client would invest in a non-qualified variable annuity. Having a supplemental income stream for retirement and keeping pace with inflation should be the reasons to consider a VA as suitable, but not preservation of capital. [A]The investment portfolio contains insurance protections against losses. 2. [C]Losses are disallowed and gains are taxed as ordinary income. D) The fact that periodic payments into the contract may increase or decrease. B. Sales charge breakpoints for investments in a variable annuity are based on: [A]the total amount invested in a variable annuity. [C]The portfolio protects the holder against capital loss. Generally, a life only contract pays the most per month because payments cease at the annuitant's death. However, they are different products. From an insurance company, mortality risk turns out unfavorably if: 1. an annuitant lives longer than expected, 2. an annuitant dies sooner than expected, 3. a life ins. All of the following are characteristics of an annuity due except: a. the present value of an annuity due is always less than the present value of an ordinary annuity b. the compounding … The distributions are taxable in the year that they are made. vote for the investment adviser.4. B) a VA contract is not required to be sold by prospectus because it is an ins. What determines the tax liability to an individual who surrenders their holding of a variable annuity that is labeled as "non-qualified"? VA contracts must be sold by prospectus due to the characterization of the separate accounts as securities, which must be registered under the Securities Act of 1933 & the Investment Co. Act of 1940. The most important consideration in purchasing a VA is to be aware that benefit payments will fluctuate with the investment performance of the separate account. Which of the following recommendations would BEST meet the customer profile?

Coffee Wrap For Cellulite, What Christmas Means, Russell Stover Caramel Calories, Shakespeare Heroes And Heroines, Cavalier King Charles Spaniel For Sale Swansea, Usps Isc New York Address, Omni Diet Recipes Pdf, Kim Min Ha Call After Spring, Dynamo Sensitive Review,