Finra Series-6 Exam - Topic 9 Question 71 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 71
Topic #: 9

Mr. R. Retired recently turned 61 and has decided to annuitize a variable annuity contract in which he had been investing. When he does so:

Ahe will have to pay a 10% penalty for annuitizing the contract before he turned 62 .

Bhis accumulation units will be converted into a fixed number of annuity units.

Cthe value of his annuity units becomes fixed.

DBoth B and C are true statements.

Show Suggested Answer

Suggested Answer: B

When Mr. R. Retired decides to annuitize his variable annuity contract at the age of 61, his accumulation units will be converted into a fixed number of annuity units. The value of these units will depend on the actual returns earned by the account and the actuarially-determined assumed interest rate; it is not fixed. Mr. Retired will not be subject to a 10% penalty since he is over 59 years old.

by Alyce at Feb 13, 2024, 02:41 AM

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Rosalyn

6 months ago

So, his annuity units become fixed? That's interesting!

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Janessa

6 months ago

B and C are definitely true!

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Fatima

6 months ago

Wait, are you sure about that?

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Steffanie

7 months ago

Totally agree, no penalty for him!

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Caitlin

7 months ago

He won't face a penalty since he's over 59½.

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Nichelle

7 months ago

I practiced a question similar to this, and I think the penalty only applies if he withdraws before 59½, so I don't think A is correct.

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Wai

7 months ago

I’m pretty sure that once he annuitizes, the value of the annuity units becomes fixed, but I can't recall if that means both B and C are true.

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Francoise

7 months ago

I think when he annuitizes, his accumulation units do get converted to annuity units, but I'm not sure if it's a fixed number or not.

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Paris

8 months ago

I remember something about penalties for early withdrawals, but I thought it was only for cashing out, not for annuitizing.

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Na

8 months ago

Variable annuities can be tricky. I'll need to re-read the question a few times to make sure I understand it fully.

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Tarra

8 months ago

Ah, I remember learning about this in class. I'm feeling good about answering this question.

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Iesha

8 months ago

Okay, let me break this down step-by-step. I think I can work this out if I take my time.

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Tiffiny

8 months ago

Hmm, I'm a little unsure about the details of variable annuities. I'll need to think this through carefully.

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Lorita

8 months ago

This one seems pretty straightforward. I'm pretty confident I can figure it out.

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Lyndia

8 months ago

This looks like a straightforward question about Cisco ESA configuration. I'll carefully review the options and think through what each one could refer to.

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Natalie

8 months ago

Ah, this is a classic break-even question. I've seen these before, so I'm feeling confident I can nail this one.

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Rosalyn

8 months ago

Okay, I've got this. The Full Text scraping method is designed to get the entire visible text on the page, so option A is the correct answer.

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Shawnee

8 months ago

Okay, let me think this through. I know the U.S. has different export control regimes, so it's probably one of those. ITAR and EAR sound familiar, so I'll go with option B for ITAR.

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Tricia

8 months ago

Wait, is risk acceptance the same as risk avoidance? I'm a bit confused about the distinctions between these concepts.

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Shaun

8 months ago

I'm pretty confident that PolarDB supports the major relational database engines like Oracle, MySQL, and PostgreSQL. Since MongoDB is a NoSQL database, I'm going to go with that as the one that's not supported.

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