B) prime rate. A) II and III. The value of the customer's account is converted into annuity units if and when the customer decides to annuitize the contract.
Flashcards - Securities and Tax - FreezingBlue D)the state insurance department. The most popular type of variable annuity is a deferred annuity. A) waiver of premium 222. . D)each annuity unit's value is fixed, but the number of annuity units varies with time. B)Capital gains taxation on the earnings withdrawn in excess of the owner's basis. Of the answer choices given the best would be to reevaluate the recommendation based on the new information tendered by the client. D) the number of annuity units becomes fixed when the contract is annuitized. Variable annuity salespeople must register with all of the following EXCEPT:
Which of the following is NOT associated with characteristics of shares The funds in an annuity are off-limits to creditors and other debt collectors. Distribution can take place before or during any solicitation for sale. She may choose to receive monthly payments for the rest of her life. A)the number of annuity units becomes fixed when the contract is annuitized. Refinancing a home to draw out equity has been identified by FINRA as an abusive sales tactic regarding the sales of VAs. The return on a variable annuity is not guaranteed; it is determined by the underlying portfolio's value. can be sold by someone with only an insurance license A) A variable annuity
Variable Annuities Flashcards | Quizlet If the annuitant should die during that time, any death benefit would be paid to a beneficiary designated by the annuitant at the time the annuity was purchased. II. Reference: 12.1.2.1.1 in the License Exam. Consequently, the client pays taxes only on the growth portion of the withdrawal ($10,000). All of the following are characteristics of Variable Annuity contracts EXCEPT The possibility of higher returns and greater income than fixed annuities, but there's also a risk that the account will fall in value A There are no surrender fees B Guaranteed death benefit C Tax deferred growth D Training Explanations The entire amount is taxed as ordinary income. *Waiver of premium is a benefit available on qualified life insurance contracts, usually in the form of a rider, which provides for the waiver of premium payments that fall due while the policyholder is totally disabled. B)suitable regardless of funding sources Every annuity has some characteristics in common. The following information about the payroll for the week ended December 303030 was obtained from the records of Vienna Co.: Salaries:Deductions:Salessalaries$670,000Incometaxwithheld$198,744Warehousesalaries110,000Socialsecuritytaxwithheld51,714Officesalaries234,000Medicaretaxwithheld15,210$1,014,000U.S. A) number of annuity units. A) 2800. Reference: 12.1.2.1.1. in the License Exam. The payout of an annuitized variable annuity account changes from month to month in a manner determined by which of the following? Word bank:Fixed, Variable Fixedannuities provide a guaranteed rate of return, whereas Variableannuities provide conservative to aggressive investments whose rates of return are not guaranteed. B) a variable annuity contract is not required to be sold by prospectus because it is an insurance contract Question #47 of 48Question ID: 606813 Question #33 of 48Question ID: 606832 A life with period certain contract guarantees payments for a specified number of years to a named beneficiary if the annuitant dies during that time. View full document. A)not suitable The client's investment objectives, tax bracket, investment experience and risk tolerance all align well with a VA recommendation. The investor purchased accumulation units.
Get the free Learn About Annuities and Their Myths - F&G However, if you take a withdrawal during the contractssurrender period, which can be as long as 15 years, youll generally have to pay a surrender fee. The annuity unit's value represents a guaranteed return. These contracts come with high surrender charges. Travel Times Journal found that the average per person cost of a 10-day trip along the Pacific coast, per person, is $1,015. Contributions to a nonqualified variable annuity are not tax deductible. Though its stated return might not be as high as the other choices potential returns, only a fixed annuity fits the objective and risk averse traits of this client. B)Fixed annuity contract with a discussion regarding timing risk Life income riders are best suited for those who anticipate a lengthy retirement and are generally not yet retired when making the VA purchase. Periodic payments are not a consideration because normally the payments into an annuity are level or in a lump sum. These contracts cover both lives and will continue to make payments until the last spouse dies. Annuities are similar to other forms of investing in that the owner invests money with the hope that it will gain in value, but annuities also come with higher fees than most mutual funds.
Francisco R. - Financial Professional - Prudential Financial | LinkedIn A variable annuity does not guarantee an earnings rate because earnings will depend on the performance of the separate account. Your client has a large sum of money to invest from the proceeds of the sale of his home. C)II and IV. Reference: 12.3.3 in the License Exam. C) 3000. a life insurance holder lives longer than expected. In addition, if the customer is not at least 59-, there will be a tax penalty of an additional 10%. Question #41 of 48Question ID: 606801 C)II and III. B) the number of annuity units is fixed, and their value remains fixed. C)the number of annuity units is fixed, and their value remains fixed. The number of annuity units varies. Which of the following recommendations would best meet the customer profile? *The accumulation period of a variable annuity may continue for many years. D)II and III. This chapter was updated on 15 December, 2005. D)I and III.
Variable Annuities | Investor.gov *A variable annuity payout is determined by comparing account performance with AIR, and this month's payout with last month's payout. D) accumulation shares. a variable annuity does not guarantee payments for life. Accumulation Period of Fixed Annuities During this period, premiums are credited with interest which accumulates on a yearly basis. Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Eric W. Noreen, Peter C. Brewer, Ray H Garrison. A)II and IV. In this case, the investor is taking a lump-sum distribution before reaching age 59- and must pay an additional 10% penalty on the taxable amount. In March, the actual net return to the separate account was 8%. A variable annuity's separate account is: C)none of these. A)the state banking commission. A) Age 56, available cash to invest, makes the maximum retirement plan contributions to an existing IRA and 401(k) plan Annual depreciation on the machine is$12,000, and the tax rate of the company is 25%. D)value of accumulation units. A) II and IV. B) the client may vote for the board of directors or board of managers. Drives - are hardwired characteristics of the brain that correct deficiencies or maintain an internal equilibrium by producing emotions to energize individuals.
6102.0.55.001 - Labour Statistics: Concepts, Sources and Methods, Dec 2005 Sas#8-psy 002 - Organizational Behavior A) waiver of premium A) Fixed Annuity A)number of annuity units. What is the taxable consequence of this withdrawal to your client? He originally invested $29,000 4 years ago; it now has a value of $39,000. Are Variable Annuities Subject to Required Minimum Distributions? These include white papers, government data, original reporting, and interviews with industry experts. The annuitized payments are viewed for tax purposes as No software installation.
a variable annuity has which of the following characteristics We also reference original research from other reputable publishers where appropriate. C) insurance companies keep variable annuity funds in separate accounts from other insurance products. Variable annuities operate in similar ways to . Lifetime vs. fixed period annuities A variable annuity's separate account is: A) used for the investment of monies paid by variable annuity contract holders B) separate from the insurance company's general investments C) operated in a manner similar to an investment company D) as much a security as it is an insurance product All of the above When the second party dies, all payments cease. Question #36 of 48Question ID: 606805 Reference: 12.2.1 in the License Exam, Question #48 of 48Question ID: 606835 's dividend yield was % last year. C) II and III. "Variable Annuities: What You Should Know," Page 6. *Universal variable life policies are insurance company products that should be purchased primarily for the insurance features they offer rather than as an investment. D) I and III Once the contract is annuitized, monthly payments to the customer are: The earnings are taxable but the cost basis is returned tax free. The value of the separate account is now $30,000. For a retired person, which of the following investments would provide the greatest protection against inflation? no. Spartan Technology Services and Solutions Private Limited is a subsidiary of IBM (International Business Machines) Corporation. C) II and IV. A) Money market fund. D) The fact that periodic payments into the contract may increase or decrease. D) Variable annuity. The fixed payment that the annuitant receives loses purchasing power over time as a result of inflation. Therefore only a fixed annuity could be considered as suitable. A)defined contribution plans. D) periodic payment deferred annuity. She may choose to receive monthly payments for the rest of her life. The income was deferred from tax over the plan's life, so it is taxable as ordinary income once distributed.
CH 7 Annuities Flashcards | Quizlet A) an accounting measure used to determine payments to the owner of the variable annuity.
Frequently Asked Questions Anti-Money Laundering Program and Suspicious a. it performs a single task b. it is self-contained and independent of other modules c. it is relatively short d. all of the above are chamcleristics of a program module 7. B)fixed in value until the holder retires. Changes in payments on a variable annuity correspond most closely to fluctuations in the: In March, the actual net return to the separate account was 8%. I. C)Money market fund. The amount of the purchase payments that go into the account may be less than you paid because fees were taken out of the purchase payments. Insurance companies introduced the variable annuity as an opportunity to keep pace with inflation. All of the following statements about variable annuities are true EXCEPT: The minimum guaranteed death benefit is provided by that portion of the payment invested in the insurance company's general account. . Complete a blank sample electronically to save yourself time and money.
Variable Annuities Flashcards | Quizlet Spartan Technology Services and Solutions Private Limited is a subsidiary of IBM (International Business Machines) Corporation. When the contract is annuitized, the annuitant is credited with a fixed number of annuity units. A) the investment portfolio is managed professionally. vote for the investment adviser. Suppose that 20%20 \%20% of their users are United States users who log on daily.