Page 147 - The Informed Fed--Hearn Wealth Management

Premium: The amount you pay to buy an annuity or any other insurance
product. With a single premium annuity you pay just once, but with other

types you pay an initial premium and then make additional premium
payments.

Principal: The amount of money you use to purchase an annuity, bond,
mutual fund, stock or other investment. The principal is the base on

which your earnings accumulate.

Proprietary Portfolios: The investment portfolios offered within a

variable annuity that are ru
managers. The annuity may also offer portfolios run by managers
working for another financial institution, such as a mutual fund.

Qualified annuity: An annuity contract you buy with pretax dollars as
part of an employer-sponsored qualified retirement plan.

Rollover: An IRA or qualified retirement plan that you move from one

trustee to another is known as a rollover. You can roll over any qualified
plan, including a qualified annuity, into an IRA, preserving its tax-
deferred status.

Separate account: The account established by the insurance company

to hold the money you contribute to your variable annuity. It is separate

deposited. Money in the separate account is not avail-able to the

Single premium annuity: This type of annuity contract is purchased

with a one-time payment. All immediate annuities and some deferred,
nonqualified annuities are in this category.

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