a variable annuity has which of the following characteristics

Once the cost basis is reached, any further withdrawals are a nontaxable return of principal. Income that cannot be outlived by the owner If the customer takes a withdrawal of $10,000, what are the tax consequences? Try C) each annuity unit's value and the number of annuity units vary with time. Salaries:SalessalariesWarehousesalariesOfficesalaries$670,000110,000234,000$1,014,000Deductions:IncometaxwithheldSocialsecuritytaxwithheldMedicaretaxwithheldU.S. If the data is normally distributed with standard deviation$198, find the percent of vacationers who spent less than $1,200 per day. Most annuities will not allow you to withdraw additional funds from the account once the payout phase has begun. A)the number of annuity units becomes fixed when the contract is annuitized. Insurance companies introduced the variable annuity as an opportunity to keep pace with inflation. C. Variable annuities are designed to combat inflation risk. &&& \underline{\underline{\$341,718}} D)0. D) Growth mutual funds. D) I and IV. A) II and III. The growth portion is taxed as ordinary income. B) The death benefit cannot ever be more than the guaranteed benefit. A) I and II. All of the following investment strategies offer either fully or partially tax-deductible contributions to individuals who meet eligibility requirements EXCEPT: Your customer, still working, informs you that she will be funding a variable annuity you have recommended from 2 sources: a refinancing of her primary home where she will be able to draw out equity that has built up since it was purchased 15 years ago, and cashing out another variable annuity that she recently purchased within the past 2 years without a lifetime income rider like the one you have recommended. Fixed annuities pay a fixed monthly benefit which loses purchasing power if there is inflation. A)III and IV. A) I and III. Based on this information the RR should: B) value of annuity units. C)none of these. A registered representative recommends a variable annuity with an income rider to a client. Variable annuities are riskier than fixed annuities because the underlying investments may lose value. B) 10% penalty plus payment of ordinary income tax on all funds withdrawn. Before the contract is annuitized, your client, currently age 60, withdraws some funds for personal purposes. Anthony Battle is a CERTIFIED FINANCIAL PLANNER professional. The client's investment objectives, tax bracket, investment experience and risk tolerance all align well with a VA recommendation. A)I and IV. Over the past five years, 's dividend yield has averaged % per year. A variable annuity is a type of annuity contract, the value of which can vary based on the performance of an underlying portfolio of sub accounts. A variable annuity is a long term investment issued by an insurance company that can help you grow your money, take income in retirement and pass on your wealth. IBM is a global brand and has its presence in 170 countries and operates . B) fixed in value until the holder retires. *The customer, in the accumulation stage of the annuity, is holding accumulation units. \text{Salaries:} && \text{Deductions:}\\ When the first party dies, the annuity payment is made to the survivor. The separate account performance compared to an assumed interest rate. What percentile is represented by $710? All of the following statements concerning a variable annuity are correct EXCEPT: \hspace{10pt} \text{Sales salaries} & \$\hspace{5pt} 670,000 & \hspace{10pt} \text{Income tax withheld} & \$198,744\\ A) Any tax due is deferred. D) variable annuities may only be sold by registered representatives. He wants to ensure that the client, in addition to meeting suitability requirements, is aware of certain variable annuity contract characteristics. A)Fixed annuity contract with a discussion regarding purchasing power risk The tax on this is $2,800 ($10,000 x 28%). Changes in payments on a variable annuity correspond most closely to fluctuations in the: An 18-year-old, unmarried high school student sought a safe investment for a $30,000 bequest until after she graduated from college. A)the yield is always higher than mortgage yields. Round to the nearest hundredth of a percent. Variable annuity Which of the following is characteristic of fixed annuities? (primary needs). A customer has a nonqualified variable annuity. D) a minimum of 10 years of variable payments, followed by additional variable payments for life B) 0. A) II and III. When the annuitization option is selected, each payment represents both capital and earnings. U.S. Securities and Exchange Commission. All of the following investment strategies offer either fully or partially tax-deductible contributions to individuals who meet eligibility requirements EXCEPT: C) Universal variable life policy. The income was deferred from tax over the plan's life, so it is taxable as ordinary income once distributed. *Contributions to a nonqualified annuity are made with the owner's after-tax dollars. B) I and IV. The growth portion is taxed as a capital gain. Of the answer choices given the best would be to reevaluate the recommendation based on the new information tendered by the client. C) III and IV. Question #14 of 48Question ID: 606823 A)There is no tax as the withdrawal is considered return of capital. Variable annuities were introduced in the 1950s as an alternative to fixed annuities, which offer a guaranteedbut often lowpayout during the annuitization phase. This includes transportation, food, lodging, and entertainment. D) Joint and last survivor annuity. Your client has $50,000 to invest. *VAs are less suitable for individuals who have not yet made maximum contributions to other retirement accounts such as IRAs and 401ks. A) defined contribution plans. Sample problems from Chapter 9. . This annuity is nonqualified, which means the client has paid for it with after-tax dollars and has a basis equal to the original $29,000 investment. A) two people are covered and payments continue until the second death. Here is how guaranteed lifetime annuities work. D)Variable annuity contract with a discussion regarding legislative risk, A VA with its investments in the separate account subject to market risk would not align with the customer's objective. B) Exchange traded Funds (ETFs) or Exchange traded Notes (ETNs) A joint life with last survivor annuity: Reference: 12.1.4 in the License Exam. *A variable annuity may only be surrendered during the accumulation period. Reference: 12.3.2.1 in the License Exam. 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 national origin, genetics, disability, age, veteran status, or any other characteristic protected by law. IBM Noida, Uttar Pradesh, India4 weeks agoBe among the first 25 applicantsSee who IBM has hired for this roleNo longer accepting applications. The money paid in will be returned tax free, but the earnings portion will be taxed as ordinary income. For example, if the income is monthly, the first payment comes one month after the immediate annuity is bought. B)Universal variable life policy. A)defined contribution plans. Before buying a variable annuity, investors should carefully read the prospectus to try to understand the expenses, risks, and formulas for calculating investment gains or losses. Reference: 12.3.3 in the License Exam, Question #34 of 48Question ID: 606834 Your customer is interested in a variable annuity but is unclear on some of the details regarding different specifications and riders that can be attached to the contract. B) II and IV. Premiums made into the annuity purchase accumulation units. B) The investor's marital status. Securely download your document with other editable templates, any time, with PDFfiller. C)the SEC. None of the other investments listed here offer tax-deferred growth. C)100% tax deferred. A) mortality guarantee. Deal with mathematic Math is all about solving equations and finding the right answer. Practice all cards. B) allow customers to opt out of sharing of financial information with certain nonaffiliated firms. c. The separate account provides for a guaranteed minimum return. D)I and II. If an investor has purchased an immediate variable annuity, which of the following statements best describe the investment? D) I and III. e) Are From the United States and Log on every day independently? D) a minimum of 10 years of variable payments, followed by additional variable payments for life. Policyholders . D) I and III *Variable annuity contracts were devised to help investors keep pace with inflation. D) each annuity unit's value varies with time, but the number of annuity units is fixed. Supplemental income stream for retirement, not preservation of capital should be the catalyst to consider a VA and for anyone who may need access to the sum invested for any reason a VA would not be considered a suitable recommendation. D) I and II. Since the client is older than 59 at the time of distribution, the additional 10% penalty tax is not incurred. B)I and III. A) The entire amount is taxed as ordinary income, because it is not life insurance. Reference: 12.3.3 in the License Exam. During the . This makes a total of $4,000 tax and penalty paid on the random withdrawal. Reference: 12.1.4.2 in the License Exam. A) I and II C) taxed as ordinary income only to the extent of earnings. Which of the following statements is not true about the characteristics of a trend? A)exempt from taxes Which of the following is NOT an accurate statement concerning a variable life insurance contract? C)I and IV. vote on proposed changes in investment policy. B) accumulation units. A) Life-only annuity If your client, who is in the 28% tax bracket, makes a lump-sum withdrawal of $15,000, what tax liability results from the withdrawal? The tax on this amount is $3,000. One of the following would achieve that objective but a suitability discussion regarding it's risk should also occur. The value of the annuity units is fixed. The owner of a variable annuity has all of the following rights EXCEPT the right to vote: a. for the board of trustees b. to change the separate account's investment objective c. for distributing income and capital gains d. for dissolution of the trust c. for distributing income and capital gains. C) 3000. Periodic payments are not a consideration because normally the payments into an annuity are level or in a lump sum. Question #35 of 48Question ID: 606810 An annuitant assumes the investment risk of a variable annuity and is not protected byt he insurance company from capital losses. *When a variable contract is annuitized (distributed in regular payments, not as a lump sum), the number of accumulation units is multiplied by the unit value to arrive at the account's current value. Bear in mind that between the numerous feessuch as investment management fees,mortality fees, and administrative feesand charges for any additional riders, a variable annuitysexpenses can quickly add up. C) During the annuity period. Question #46 of 48Question ID: 606796 You can buy an annuity with either a lump sum or a series of payments, and the accounts value will grow accordingly. used for the investment of funds paid by contract holders. B) be paid to any legal heirs as recognized by the annuitant's state of domicile. A demonstrated ability to quickly learn and continuously develop functional knowledge and an understanding of company products as well as administrative, claims, underwriting and marketing functions. a variable annuity guarantees an earnings rate of return. Which of the following is characteristic of variable annuities? C) II and III. The annuity unit's value represents a guaranteed return. C) II and IV. II. Fixed Annuity: A fixed annuity is a type of annuity contract that allows for the accumulation of capital on a tax-deferred basis.

3 Car Crash Morrinsville, Where To Eat Before Hamilton Nyc, Connie Stevens Children, Articles A