Mutual Funds Vs. Variable Annuities

Question 1

Mutual funds have what type of company?

Answer 1

Investment company

Question 2

Variable Annuities have what type of company?

Answer 2

Insurance company

Question 3

Mutual funds need what type of license?

Answer 3

Securities license

Question 4

Variable annuities need what type of licenses?

Answer 4

Securities and insurance license

Question 5

Mutual funds have shares or units?

Answer 5

Shares

Question 6

Variable Annuities have shares or units?

Answer 6

Units

Question 7

What’s the dividend scenario with mutual funds?

Answer 7

Dividends are taxable each year as ordinary income

Question 8

What’s the dividend scenario with variable annuities?

Answer 8

Dividends grow tax-deferred

Question 9

Mutual Funds are taxable LIFO or FIFO?

Answer 9

FIFO

Question 10

Variable annuities are LIFO or FIFO?

Answer 10

LIFO + 10% Before 59 1/2

Question 11

Mutual funds have a guaranteed principle or do not have a guarantee principle?

Answer 11

No guaranteed principal at Death

Question 12

Variable Annuities have a guaranteed principle or do not have a guarantee principle?

Answer 12

They DO have a guaranteed principal at death

Question 13

Mutual funds have a life income option or do not have a life income option?

Answer 13

NO Life income option

Question 14

Variable annuities have a life income option or do not have a life income option?

Answer 14

They DO have a life income option

Question 15

Mutual Funds DO or DONT have A penalty prior to age 59 1/2 on withdrawals?

Answer 15

DONT

Question 16

Variable Annuities DO or DONT have A penalty prior to age 59 1/2 on withdrawals?

Answer 16

DO

ITS 10% + income tax