chartered wealth manager accredited financial analyst financial planner ISO 9001 Accredited Certification Body Training
International Board of Standards - Professional Designations -  Accredited Education.  Creating the World's Leaders in Management ™

 
<< Previous    1...   33  34  [35]  36  37  ...91    Next >>

Example:  You purchase a variable annuity contract that offers a bonus credit of 3% on each purchase payment. You make a purchase payment of $20,000. The insurance company issuing the contract adds a bonus of $600 to your account. 

Caution! 

Variable annuities with bonus credits may carry a downside, however – higher expenses that can outweigh the benefit of the bonus credit offered. 

Frequently, insurers will charge you for bonus credits in one or more of the following ways:  

·         Higher surrender charges – Surrender charges may be higher for a variable annuity that pays you a bonus credit than for a similar contract with no bonus credit. 

·         Longer surrender periods – Your purchase payments may be subject to surrender charges for a longer period than they would be under a similar contract with no bonus credit. 

·         Higher mortality and expense risk charges and other charges – Higher annual mortality and expense risk charges may be deducted for a variable annuity that pays you a bonus credit. Although the difference may seem small, over time it can add up. In addition, some contracts may impose a separate fee specifically to pay for the bonus credit. 

 

 

Before purchasing a variable annuity with a bonus credit, ask yourself – and the financial professional who is trying to sell you the contract – whether the bonus is worth more to you than any increased charges you will pay for the bonus. This may depend on a variety of factors, including the amount of the bonus credit and the increased charges, how long you hold your annuity contract, and the return on the underlying investments. You also need to consider the other features of the annuity to determine whether it is a good investment for you.  

Example:  You make purchase payments of $10,000 in Annuity A and $10,000 in Annuity B. Annuity A offers a bonus credit of 4% on your purchase payment, and deducts annual charges totaling 1.75%. Annuity B has no bonus credit and deducts annual charges totaling 1.25%. Let's assume that both annuities have an annual rate of return, prior to expenses, of 10%. By the tenth year, your account value in Annuity A will have grown to $22,978. But your account value in Annuity B will have grown more, to $23,136, because Annuity B deducts lower annual charges, even though it does not offer a bonus. 

You should also note that a bonus may only apply to your initial premium payment, or to premium payments you make within the first year of the annuity contract. Further, under some annuity contracts the insurer will take back all bonus payments made to you within the prior year or some other specified period if you make a withdrawal, if a death benefit is paid to your beneficiaries upon your death, or in other circumstances. 

Caution! 

If you already own a variable annuity and are thinking of exchanging it for a different annuity with a bonus feature, you should be careful. Even if the surrender period on your current annuity contract has expired, a new surrender period generally will begin when you exchange that contract for a new one. This means that, by exchanging your contract, you will forfeit your ability to withdraw money from your account without incurring substantial surrender charges. And as described above, the schedule of surrender charges and other fees may be higher on the variable annuity with the bonus credit than they were on the annuity that you exchanged. 
<< Previous    1...   33  34  [35]  36  37  ...91    Next >>

About GAFM ®

  The GAFM International Board of Standards is TUV Accredited and ISO Certified for Quality and ISO 29990 Certified for Training Standards

 

 

Validate and Verify Member Here

 
 TUV Accredited

 



 

Join our Linkedin Group

LinkedIn.com

 



 Accredited Certified Financial Analyst Chartered Accountant

The GAFM ® Board is the 1st Graduate Certification Body to Become Accredited  and Certified for: ISO 9001 Quality and ISO 29990 Training in the World. GAFM ® owns the former AAFM ® Certifications and Programs

 

 

 

Certified Management Consultant 

Home Certifications Board Recognition Requirements Providers About Contact Us Contact Apply AFAPPC GetCertifiedPPC Benefits Chartered Wealth Manager News How To Use Stock Markets Training Calendar FINRA Application Reg. Payments About Old Events CWM Training Program News UBT University Business Technology Saudi Arabia Saudi Arabia - Certification Training Programs 2017 - University Business & Technology CEO Message Chartered Certified Economist Certified Financial Analyst FINRA SEC Chartered Wealth Manager Training Indonesia Malaysia Guides Informa GAFM Guides Jamaica Qualifying Degrees Global Advisors Membership Mission Ethics Governmental Recognition Links Handbook mfm Financial Planner Program Chartered Economist CCO Higher Institute IP List Become Provider Management Consulting Jobs TUV Accreditation CWM Chartered Wealth Manager Terms Financial Analyst Certification Copy of Certification Economics Certification Economics Degrees Management Degrees Finance Degrees Accounting Degrees Exams Renew Certification Awards Sample Honor Society Trademarks Careers Complaint Site Map Mentz George Mentz Lawyer Mentz George Colorado USA Speaker Consultant AFA ® Accredited Financial Analyst Certification CTEP ® Trust and Estate Certification CIPM ® Certified International Project Manager CWM ® Chartered Wealth Manager ® AMA ® Management Accountant Certification AMC ® Management Consulting Certification MMC ® Management Consulting Certification Book

Google Plus 

All Rights Reserved 1996-2017 -  GAFM Global Academy of Finance and Management   & Association for Finance and Management
 Mentzinger Media LLC   Board of Standards - Accreditation and  Certification - Global Certified  Accountants Financial Analysts Institute 
Association of International Financial Accounting  Foregin Relations Public Policy Council  Chartered Wealth Manager
Accredited Financial Analyst Certified Chartered Management Accountant   - Association Institute Academy 
US Department of Labor  - George Mentz
Join us on LinkedIn  - Financial Analyst Training - Chartered Wealth Manager ® - ChE Chartered Economist ®
 
www.GAFM.us * www.GAFM.org
In alliance with the Unincorported Non-Profit Association of Finance and Management USA
 
A financial analyst  securities analyst, research analyst, equity analyst, or investment analyst is a person who performs financial analysis for external or internal clients as a core part of the job. Financial analysis (also referred to as financial statement analysis or accounting analysis or Analysis of finance) refers to an assessment of the viability, stability and profitability of a business, sub-business or project. It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions. Certification as a financial analyst requires accredited education in finance
 
Management consulting is the practice of helping organizations to improve their performance, primarily through the analysis of existing organizational problems and development of plans for improvement. Organizations may draw upon the services of management consultants for a number of reasons, including gaining external (and presumably objective) advice and access to the consultants' specialized expertise. Becoming certified in management consulting requires proper education experience and credentials.
 
Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. Cost accounting is a process of collecting, analyzing, summarizing and evaluating various alternative courses of action. Its goal is to advise the management on the most appropriate course of action based on the cost efficiency and capability. Cost accounting provides the detailed cost information that management needs to control current operations and plan for the future. Certification in management or cost accounting requires education and expertise in accounting.
 
IP/Rights Global