All of the following investment strategies offer either fully or partially tax-deductible contributions to individuals who meet eligibility requirements EXCEPT: c. The separate account provides for a guaranteed minimum return. This compensation may impact how and where listings appear. At the end of the year your account has a value of 10750. Annuities due are a type of annuity where payments are made at the beginning of each payment period. *An immediate annuity has no accumulation period. A deferred annuity is an insurance contract that promises to pay the buyer a regular stream of income, or a lump sum, at some date in the future. Facebook reports that 70%70 \%70% of their users are from outside the United States and that 50%50 \%50% of their users log on to Facebook daily. In a joint-and-last-survivor option, the annuity payment is made jointly to both parties while both are alive. D) I and III. The money paid in will be returned tax free, but the earnings portion will be taxed as ordinary income. In addition, if the customer is not at least 59-, there will be a tax penalty of an additional 10%. In a variable annuity contract, the provision that guarantees the annuitant payments for life is called the: Question #17 of 48Question ID: 606802 B) I and IV. Lifetime vs. fixed period annuities A customer has a nonqualified variable annuity. C) There is no tax as the withdrawal is considered return of capital. Of the 4 client profiles below, which might be the best suited for a variable annuity recommendation? Reference: 12.3.3 in the License Exam. C) The insurance company. (The exception is the fixed income annuity, which has a moderate to high payout that rises as the annuitant ages). Expert Answer. Universal variable life policies During the accumulation phase, the number of accumulation units will increase as additional money is invested. do not have a separate account D) accumulation shares. b. A) partially a tax-free return of capital and partially taxable. A)Ordinary income taxation on the earnings withdrawn until reaching the owner's cost basis. The money paid in will be returned tax free, but the earnings portion will be taxed as ordinary income. Her agent recommended she choose a variable annuity as a safe haven for the funds. Of the answer choices given the best would be to reevaluate the recommendation based on the new information tendered by the client. \hspace{10pt} Federal unemployment (employer only), 0.8%0.8\%0.8%. A) II and III. With variable annuities policyholders can choose from a number of investment opportunities. C) III and IV. If a 42-year-old customer has been depositing money in a variable annuity for 5 years, and he plans to stop investing but has no intention of withdrawing any funds for at least 20 years, he is holding: Question #18 of 48Question ID: 606827 Over the past five years, 's dividend yield has averaged % per year. B) prime rate. do not have a separate account Usually the term "annuity" relates to a contract between an individual and a life insurance company. An investor who has purchased a nonqualified variable annuity has the right to: Variable annuities must be registered with: All of the following statements concerning a variable annuity are correct EXCEPT: D) variable annuities will protect an investor against capital loss. C) the client assumes the investment risk. D) Age 27, saving for first home. Assuming that the payroll for the last week of the year is to be paid on December 313131, journalize the following entries: Transcribed image text: 6. None of the other investments listed here offer tax-deferred growth. Consequently, the client pays taxes only on the growth portion of the withdrawal ($10,000). B)changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices. C)I and III. *Contributions to a nonqualified variable annuity are not tax deductible. Reference: 12.1.2.1.2 in the License Exam. Payments from a variable annuity depend on the securities' value in the separate account's underlying investment portfolio. Annuity units are units of ownership when the contract is in the payout stage. Contributions to an IRA may be tax deductible, depending on the individual's earnings and participation in a company-sponsored qualified retirement plan. C) II and IV. C)III and IV. A) Ordinary income tax on earnings exceeding basis. C) Unit refund life option A)exempt from taxes D)I and IV, Universal variable life policies are insurance company products that should be purchased primarily for the insurance features they offer rather than as an investment. When the annuitization option is selected, each payment represents both capital and earnings. D)the rate of return is determined by the underlying portfolio's value. The earnings are taxable but the cost basis is returned tax free. While variable annuities have greater potential for earnings, since their interest rate rises and falls with their underlying investments, they can lose money. D) II and IV. a. D) periodic payment deferred annuity. The growth portion is subject to a 10% penalty. A registered representative explaining variable annuities to a customer would be CORRECT in stating that: D)Investment risk. A) two people are covered and payments continue until the second death. B)It will be lower. 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. *As contributions are made with after-tax dollars, only the earnings generated are taxed on withdrawal. Of the four client profiles below which might be the best suited for a variable annuity recommendation? C) insurance guarantee. The client's investment objectives, tax bracket, investment experience and risk tolerance all align well with a VA recommendation. However, they are protected by state guaranty associations in the event that the insurance company providing the product goes out of business. Her intent was to use the funds for the down payment on a house after graduation. C)prime rate. Which of the following is characteristic of variable annuities? &&& \underline{\underline{\$341,718}} The client agrees to purchase the contract and informs the RR that he will be cashing out a VA he purchased 2 years ago to fund the new contract and will forward the check as soon as he receives it. c) Construct a contingency table showing all the joint and marginal probabilities. D) Any time before the accumulation period. C)suitable due to the death benefit features of a variable annuity. Reference: 12.3.3 in the License Exam. D) Variable annuity. D)I and III. It was a lump-sum purchase. D)I and III. She will receive the annuity's entire value in a lump-sum payment. C)III and IV. B) During the accumulation period. Variable annuities were introduced in the 1950s as an alternative to fixed annuities, which offer a guaranteedbut often lowpayout during the annuitization phase. have investment risk that is assumed by the investor B)each annuity unit's value varies with time, but the number of annuity units is fixed. If an investor has a fixed-annuity contract with an insurance company, which of the following risks is assumed by the investor? The number of accumulation units can rise during the accumulation period. Once a variable annuity has been annuitized: D)separate account may consist of mutual funds. The amount taxed is the amount of the lump-sum payment minus the deceased's cost basis in the investment. B) The entire $10,000 is taxable as ordinary income. D) A 50 year old individual with $50,000 cash to invest who has already made the maximum contributions to an IRA and the 401(k) plan at his place of employment and would like to minimize some of the tax consequences of his currently high tax bracket. C) 3000. II) It has an internal capital market wherein each division competes for funds. The annuity unit's value represents a guaranteed return. A) I and IV. If your 60-year-old customer purchases a nonqualified variable annuity and withdraws some of her funds before the contract is annuitized, what are the consequences of this action? C)3800. C) with guaranteed minimum withdrawal benefits (GMWBs) a lifetime of periodic payments is guaranteed Deal with mathematic Math is all about solving equations and finding the right answer. C)Life annuity. \hspace{7pt} b. December 303030, to record the employers payroll taxes on the payroll to be paid on December 313131. A trend makes considerable influence or impact. \hspace{7pt} b. January 444, to record the employers payroll taxes on the payroll to be paid on January 444. Variable annuities should be considered long-term investments due to the limitations on withdrawals. The growth portion is taxed as ordinary income. Which of the following statements regarding variable annuities are TRUE? no. *Mortality risk- If an annuitant lives longer than expected, the insurance company will have to continue payments longer than expected. An annuity factor is taken from the annuity table, which considers, for example, the investor's sex and age. *During the accumulation phase, the number of accumulation units will increase as additional money is invested. The separate account performance compared to last month's performance. Reference: 12.1.2.1.1 in the License Exam. Which of the following are defined as securities? Can I Borrow from My Annuity for a House Down Payment? The number of annuity units is fixed at the time of annuitization. A)II and IV. All of the following statements about variable annuities are true EXCEPT: Options. When the first party dies, the annuity payment is made to the survivor. This includes transportation, food, lodging, and entertainment. Annuity death benefits are generally paid in a lump sum. Given that all of the current retirement investments are subject to market risk, the customer wants these new funds to have no market risk exposure. His objective is monthly income that he can receive after he retires to supplement his small pension and social security benefits. This recommendation is: D) unsuitable because her situation exposes her to surrender charges and early withdrawal penalties in exchange for insufficient benefits. *Since this is a nonqualified annuity (with no tax deduction), the client pays taxes only on the growth portion or, in this case, $10,000. These contracts come with high surrender charges. C) 10% penalty plus payment of ordinary income tax on all funds withdrawn exceeding basis. The value of the annuity units is fixed. There is a guaranteed minimum interest rate, normally amounting to between 1 and 3 percent. D) The investment risk is shared between the insurance company and the policyowner. C) II and III. C) I and III. Contributions to an IRA may be tax deductible, depending on the individual's earnings and participation in a company-sponsored qualified retirement plan.
55 And Older Communities In Paulding County Ga,
Colorado Prepayment Penalty Law,
Articles A