Diffent Types Of Annuities Flashcards
What are the keywords for all the different types of annuities
- Immediate - personal pension
- Fixed - CD/T-Bill
- Variable - Mutual Fund
- Fixed Index - Combo
- Fixed index with income rider - NextGen Annuity Strategies
What is the process for immediate annuity
Lump sum of $ to insurance companies
Guaranteed income for life
What is the process for fixed annuity
Lump sum of $ to ins. Co.
Fixed rate for a fixed term
What is the process for variable annuity
Lump sum of $ given to ins. Co
Invest it into the market
What is the process for fixed index annuity
Lump sum of $ to ins. Co.
Put it into an index of your choice
What is the process for fixed index annuity with the income rider
Lump sum of $ to ins. Co
Put it into an index of your choice
What are the pros and cons of immediate annuity
PROS: Guaranteed income for life
CONS: lose control of the money
What are the pros and cons for fixed annuity
PROS: security
CONS: low returns
What are the pros and cons for variable annuity
PRO: high potential for growth
CON: risk to principal and high fees
What are the pros and cons of a fixed index annuity
PRO: participate in market upsides without market downsides
CONS: limit to earnings
What are the pros and cons to a fixed index annuity with income rider
PRO: participate in market upside without downside and guaranteed income for life without annuitizing
CON: for income purposes only
What does RMD stand for and when is it mandatory
Required Minimum Disposition
70.5
What is the difference between qualified and non qualified accounts
Qualified: tax advantages
Non-Qualified: no tax advantages
What are the 2 types of account values in a fixed index annuity with an income rider
Income account value and cash account value.
Name the 5 different types of annuities
- Immediate
- Fixed
- Variable
- Fixed Index
- Fueled Index Annuity with Income Rider
