Carl is concerned that if he purchases an equity indexed annuity, he will lose money long-term if the stock index declines.
Which equity indexed annuity provision assures Carl that he will not lose money if he holds the equity indexed annuity to term?
A) the indexing method
B) the participation rate
C) the guaranteed minimum value
D) the maximum rate cap
Question 2
Which statement is true regarding IRA distributions?
A) The minimum distribution rules apply to Roth IRAs, but not to traditional IRAs.
B) Distributions from a Roth IRA are taxed at the individual's marginal tax rate.
C) The IRA penalty tax applies to all traditional IRA distributions before age 59.5 with no exceptions.
D) Unless a life annuity is issued, a retiree may still be alive when the IRA account is exhausted.
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