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Finra Series-6 Exam - Topic 9 Question 71 Discussion

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:
B) his accumulation units will be converted into a fixed number of annuity units.
A) he will have to pay a 10% penalty for annuitizing the contract before he turned 62 .
C) the value of his annuity units becomes fixed.
D) Both B and C are true statements.

Finra Series-6 Exam - Topic 9 Question 71 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 71
Topic #: 9
[All Series-6 Questions]

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:

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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
9 months ago
So, his annuity units become fixed? That's interesting!
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Janessa
9 months ago
B and C are definitely true!
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Fatima
10 months ago
Wait, are you sure about that?
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Steffanie
10 months ago
Totally agree, no penalty for him!
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Caitlin
10 months ago
He won't face a penalty since he's over 59½.
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Nichelle
10 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
11 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
11 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
11 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
11 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
11 months ago
Ah, I remember learning about this in class. I'm feeling good about answering this question.
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Iesha
11 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
11 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
11 months ago
This one seems pretty straightforward. I'm pretty confident I can figure it out.
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Lyndia
11 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
11 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
11 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
11 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
11 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
11 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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Dalene
2 years ago
I believe the correct answer is D, both B and C. Converting accumulation units and fixing the value of annuity units makes sense for Mr. R.
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Daren
2 years ago
I'm not sure, but I think the penalty only applies if he annuitizes before 59 and a half, not 62.
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Ilda
2 years ago
But what about option A? Will he really have to pay a penalty?
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Temeka
2 years ago
I agree, converting accumulation units to annuity units makes sense.
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Daren
2 years ago
I think Mr. R. should go with option B.
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