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1 | Facts: Detailed Annuity Inputs
These training materials are intended solely for subscribers licensed with eMoney Advisor and are not to be used with clients or other members of the general public.
This detailed userguide will outline the key components of an Annuity entry within the Advanced Fact Finder. It is
important to note that all of the annuity terms & parameters are set within the annuity contract itself. Calling the
insurance company for clarification on the product is a best practice when unsure. eMoney representatives will not
interpret statements.
Annuity Inputs Basic Tab ................................................................................................................................................................................ 2
Basic Tab Continued ............................................................................................................................................................ 3
Guarantees Tab (Withdrawals Only) .................................................................................................................................. 4
Guaranteed Base Values (Withdrawals Only with Rider Definitions) ............................................................................ 4
Guarantees Tab (Income Only or Both) ............................................................................................................................. 7
Exclude Annuity From Liquidation ..................................................................................................................................... 8
Transfer Flow ........................................................................................................................................................................ 9
2 | Facts: Detailed Annuity Inputs
These training materials are intended solely for subscribers licensed with eMoney Advisor and are not to be used with clients or other members of the general public.
Basic Tab
1. Asset Type: Fixed or Variable
Type of Funds:
-Qualified: use for qualified annuities and annuities within an IRA or 403(b). -Non-Qualified: after tax money, has a cost basis. -Tax-Free: after tax money, distributions & withdrawals are tax free, typically inside a ROTH IRA, has a tax basis.
2. Available in Year: enter a future year if this asset is an inheritance or something you do not want on balance sheet. If left blank, we assume this is on balance sheet as of today. Start Indexing: if asset is available in a future year, you can select if you want growth to begin immediately or at the start year.
3 | Facts: Detailed Annuity Inputs
These training materials are intended solely for subscribers licensed with eMoney Advisor and are not to be used with clients or other members of the general public.
Basic Tab Continued
Note: Annuitization is different from withdrawals. Rather than
annuitize, a client can take withdrawals. Taking withdrawals
means the annuity is still an asset on the client’s balance sheet,
and can withdrawal the guaranteed withdrawal amount. If the
account balance runs to $0, the client will continue to receive
income for the remainder of the guaranteed term (a lifetime or
a specified period of years).
3. Pre & Post Retirement Gross Growth: This rate
should reflect the actual growth you expect. These
rates impact the actual value of the annuity in future
years.
4. Annuitization Begins: Set to NEVER if the annuity has
a withdrawal guarantee not an income guarantee
(annuitization.) Note: this option falls off the balance
sheet once annuitized and no transfer flow is needed
Annuitization Type (if applicable): If annuitization is
to begin in a specific year you must select the type:
A. Life: Income will pay for the client’s life, the
spouse’s life, or survivorship. Select from the
options for the annuity pay out.
-Based on Lifetime of: Select if the income is
based on client, spouse, or survivorship.
-Guaranteed Yrs of Payout: If payout is based
on the life of one individual, there is a rider
that will payout a certain number of years
representing the years of guaranteed payout.
If the annuitant dies within this timeframe,
annuity will continue to payout to beneficiary
until guarantee is fulfilled.
B. Term Certain: Fixed term that the income will
be paid. Enter the term of years.
4 | Facts: Detailed Annuity Inputs
These training materials are intended solely for subscribers licensed with eMoney Advisor and are not to be used with clients or other members of the general public.
Guarantees Tab (Withdrawals Only)
Guaranteed Withdrawals:
Withdrawals Only means that this
annuity has a guarantee on
withdrawals. If you select
Withdrawals Only, you will need to
set up a Transfer Flow. The transfer
tells the system when the income will
pay out.
Guaranteed Specified As:
Rider Definitions: Selecting this
option allows you to specifically
define how the contributions will
grow based upon the inputs entered
in the “Guaranteed Base Values”
section below. Note that if rider
definition is chosen then the “Total
Contributions Guaranteed” or “High
Water Mark” needs to be toggled to
yes and completed.
5 | Facts: Detailed Annuity Inputs
These training materials are intended solely for subscribers licensed with eMoney Advisor and are not to be used with clients or other members of the general public.
Guaranteed Base Values (Withdrawals Only with Rider Definitions) After completing the Guaranteed Withdrawals, scroll down to the Guaranteed Base Values
Total Contributions Guaranteed: toggle to yes if Rider
Definitions.
Guaranteed Return Investment Type: refers to how
the “Current Total Contributions Base Value” will grow
until the first withdrawal.
Guaranteed Return Based On: only available with
Simple growth, the value that “Guaranteed Return on
Contributions” is based on.
Guaranteed Return on Contributions: the guaranteed
annual rate of return that is applied to the Guaranteed
Return, if simple growth was selected. If compound
growth was selected, this is the guaranteed annual rate
of return applied to the current value on the basic tab.
Current Total Contributions Base Value: value here is
used to determine the annuity payout. This number,
multiplied by the withdrawal percentage is what the
guaranteed withdrawal/income is as of today. This
figure grows at the guaranteed return if applicable,
thus growing the guaranteed withdrawal/income for
as long as the annuitant delays the start of guaranteed
withdrawal.
High Water Mark Guaranteed? This rider allows
annuitant to receive payments based on the
“contributions base value” or the actual market value.
Guaranteed Return for High Water Mark: The
guaranteed annual rate of return on the watermark.
Current High Water Mark Base Value: the high
watermark today that has guaranteed return.
Guaranteed Benefit Cap ($): the cap in value of the
annuity. Stated in annuity contract.
Guaranteed Benefit Cap (age): the cap in age when
annuity will no longer have the guaranteed high water
mark.
6 | Facts: Detailed Annuity Inputs
These training materials are intended solely for subscribers licensed with eMoney Advisor and are not to be used with clients or other members of the general public.
Guarantees Continued (Withdrawals Only With Future Base Value)
Guaranteed Specified As:
Future Base Value: Use if you have limited
information, such as guaranteed income amount or
the withdrawal rate and future base value to which
the withdrawal rate is applied. This option is
selected when the guaranteed amount is known,
whether this is the income or the future amount
the income is based on.
Guaranteed Base Benefit Amount: Only with
Future Base Value. Enter the known future base
benefit here – either the known income amount or
the future amount that the income is based on.
Guaranteed Withdrawal Rate: Given in the annuity
contract, the rate which client is entitled to
withdraw.
Guaranteed in Effect for: how long the annuity will
last. Specific term or tied to life of annuitant noted
in the annuity contract.
Term of Guarantee: if a fixed term, provide the
number of years here.
RMD Handling: Only if Qualified.
RMD Friendly: this describes the minimum
guaranteed withdrawal being increased to the RMD
if the RMD is greater.
RMD May be Excess: this means that any
RMD that exceeds the guarantee will be treated as
an excess withdrawal.
7 | Facts: Detailed Annuity Inputs
These training materials are intended solely for subscribers licensed with eMoney Advisor and are not to be used with clients or other members of the general public.
Guarantees Tab (Income Only or Both)
Guarantees Apply To:
Income Only: Select this option if the annuity is
annuitizing as elected on the Basic tab. Select if the
annuity has a guarantee that only applies to the
income received after the annuity is annuitized.
Income is not a withdrawal. If you select Income
Only, you do NOT need a transfer flow.
Both (rare): Some annuities have both withdrawal
guarantee and a guarantee on annuity payments
(income.) In these situations, you can set up a
withdrawal for a number of years then annuitize. If
this option is selected, you will use the basic tab to
specify when annuitization begins and create a
transfer flow for the guaranteed withdrawal
portion.
Guaranteed Annuitization Payout Factor: If the
annuity is annuitizing on the Basic tab, entering a
percentage in this field will override the system
calculation for income. This is the same as the
withdrawal rate. Both boxes will be open, and the
payout factor is what is used to calculate the income.
The withdrawal rate and payout factor may be the
same percent.
8 | Facts: Detailed Annuity Inputs
These training materials are intended solely for subscribers licensed with eMoney Advisor and are not to be used with clients or other members of the general public.
Exclude Annuity From Liquidation
You may opt to exclude the annuity from the systems liquidation strategy. This is so that the annuity will only pay the
guaranteed income. If the client has a short fall – where there is a negative net cash flow, the system will not withdraw
from the annuity to fund expenses if it has been excluded.
To exclude the annuity, click Expenses > Liquidation Strategy > Exclusion tab.
Select the annuity from the Assets to Exclude list and save your changes.
9 | Facts: Detailed Annuity Inputs
These training materials are intended solely for subscribers licensed with eMoney Advisor and are not to be used with clients or other members of the general public.
Transfer Flow If the annuity is not annuitizing, then you will need to create a transfer flow. This tells the system knows when to pay out the guaranteed withdrawal/income. Make sure to toggle “Guaranteed Annuity Withdrawal” from no to yes. This will translate the guarantees you set up in the guarantees tab of the annuity.