Page 14 - 000 Complete EBook - 403(b) & 457(b) Test 12202017 1

Permanent Life
Mutual Funds
Fixed Interest Annuity Fixed Indexed Annuity Variable Annuity (if offered) Insurance - Only 457

Moder ate to Moder ate to
Risk Stable Stable to Low Stable
Aggressive Aggressive

Subject to Based on type policy.
Varies. Based
Minimum Guarantee on performance of Long range returns Normally has
Rate of Return Principal and declared generally on growth of investment accounts subject to account minimum interest and
market index over
current rate. selected and volatility performance declared or indexed
specified time period.
of market. rate.
Interest bearing with
Different methods of Subject to
Current Interest or Credits current rate of crediting interest exist option for guaranteed performance of Credits current rate of
return based on fixed
interest. Subject to
Return on Deposits declared interest based on varying performance of investment accounts or indexed
market indices selected
investment accounts.
Usually no front-end May include mortality May include sales Usually no front end
Usually no front-end
charges, sales charge or charges, sales charge & expense fees, charges and charges, sales charge
Fees or fees. Only investment, investment or fees. Only normal
fees. Only surrender
charges early years. surrender charges management fees and management fees and surrender, mortality
early years. 12b(1) fees. 12b(1) fees. and expense charges.
Share classes may
Common for early Common for early Common for early have contingent Common for early
Surrender Charges
withdrawals withdrawals withdrawals deferred sales charges years.
front end or back end
usually included if
employer approves
usually included if usually included if usually included if Sometimes Included if
Loan Provisions and only
employer approves employer approves employer approves employer approves
recommended in
future years

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