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mtenmagic

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  1. for a non-spouse beneficiary 403(b) , the beneficiary can set up a 403(b) beneficiary account or transfer the 403(b) into a IRA beneficiary account- distributions are made yearly based on the beneficiary age(Life expectancy) hope this help
  2. FOR RELEASE: CONTACTS: Monday, April 26, 2004 Nancy Condon 202-728-8304 Herb Perone 202-728-8464 NASD PROPOSES SPECIFIC REQUIREMENTS FOR DEFERRED VARIABLE ANNUITY SALES Concerns Over Suitability, Disclosure, Supervision Cited Washington, D.C.—In an effort to address continuing concerns surrounding sales and exchanges of deferred variable annuities, NASD’s Board of Governors has proposed a new rule that would impose a wide range of new requirements tailored specifically to transactions in deferred variable annuities—from new sales practice standards and supervisory requirements to increased disclosure and sales force training. “Because of our concerns about unsuitable recommendations and inadequate supervision, variable annuity sales have been the focus of increased, NASD-wide attention for the last two years and the subject of more than 80 disciplinary actions during that time,” said NASD Chairman and CEO Robert Glauber. “We believe this rule proposal represents an appropriate approach to ensuring adequate protection for investors considering or purchasing deferred variable annuities.” In general, the new rule would codify and make mandatory best-practice guidelines that NASD had previously issued. NASD intends to request public comment on the proposed rule. Details of the proposal will be made available in a Notice to Members. The key requirements of the rule proposal include: Suitability In recommending a deferred variable annuity transaction, a registered representative would be required to determine that: the customer has been informed of the unique features of the variable annuity; the customer has a long-term investment objective, and the deferred variable annuity as a whole, and its underlying sub accounts, are suitable for the customer, particularly with regard to risk and liquidity. The registered representative would be required to document these determinations. Disclosure and Prospectus Delivery The firm or its representative would be required to provide the customer with a current prospectus and a separate, brief, “plain English” risk disclosure document highlighting the main features of the particular variable annuity transaction. Those features would include: liquidity issues, such as potential surrender charges and IRS penalties; sales charges; fees (including mortality and administrative fees, investment advisory fees and charges for riders or special features); federal tax treatment for variable annuities; any applicable state and local government premium taxes, and market risk. The risk disclosure document would be required to inform the customer whether a “free look” period applies to the variable annuity contract, during which the customer could terminate the contract without paying any surrender charges and receive a refund of his or her purchase payments. Principal Review Before a registered representative could effect any transaction in a deferred variable annuity, a registered principal would be required to review and approve the transaction. The registered principal would be required to consider specific factors (for instance, whether the customer’s age or liquidity needs made a long-term investment inappropriate). Before a registered representative could complete a recommended transaction, the registered principal would be required to review and approve, in writing, the suitability analysis document and a separate exchange or replacement document, if the transaction involved an exchange or replacement of an existing variable annuity. Supervisory Procedures The rule proposal would require registered firms to establish and maintain specific, written supervisory procedures reasonably designed to achieve compliance with the rule’s standards. Training Registered firms would be required to develop and document specific training policies or programs designed to ensure that registered representatives and registered principals comply with the rule’s requirements and that they understand the unique features of deferred variable annuities. NASD is the leading private-sector provider of financial regulatory services, dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services. NASD touches virtually every aspect of the securities business—from registering and educating all industry participants, to examining securities firms, enforcing both NASD rules and the federal securities laws, and administering the largest dispute resolution forum for investors and registered firms. For more information, please visit our Web Site at www.nasd.com.
  3. Because they are exchange traded, ETFs can be: bought and sold at intraday market prices purchased on margin sold short, even on a downtick (unlike common stocks) traded using stop orders and limit orders, which allow investors to specify the price points at which they are willing to trade. To do all of this one would need a Brokerage account- are you allowed to invest money into a Brokerage account? smell's like a stock to me
  4. What are Exchange-Traded Funds?- looks like a stock to me At the most basic level, ETFs are just what their name implies: baskets of securities that are traded, like individual stocks, on an exchange (all available offerings currently trade on the American Stock Exchange). Unlike regular open-end mutual funds, ETFs can be bought and sold throughout the trading day. They can also be sold short and bought on margin--in brief, anything you might do with a stock, you can do with an ETF. Most also charge lower annual expenses than even the least costly index mutual funds. However, as with stocks, you must pay a commission to buy and sell ETF shares, which can be a significant drawback for those who trade frequently or invest regular sums of money. There are a number of different ETFs on the market currently, including Qubes, SPDRs, sector SPDRs, MidCap SPDRs, HOLDRs, iShares, and Diamonds. All of them are passively managed, tracking a wide variety of sector-specific, country-specific, and broad-market indexes. Unlike regular mutual funds, ETFs do not necessarily trade at the net asset values of their underlying holdings. Instead, the market price of an ETF is determined by forces of supply and demand for the ETF shares. To a large extent, the supply and demand for ETF shares is driven by the underlying values of their portfolios, but other factors can and do affect their market prices. As a result, the potential exists for ETFs to trade at prices above or below the value of their underlying portfolios. from Mstar This article originally appeared August 31, 2000.
  5. mtenmagic

    I Share's

    Too many people make the mistake of buying an ETF as though they were buying a mutual fund. They merely decide to order on a particular day at the going price. However, ETFs do not trade like mutual funds that are priced only once at the end of the day; ETFs are priced throughout the day. And sometimes, share prices swing by 3%, 4% or 5% in a single trading session. (Some have found the average daily range of the Nasdaq 100 (QQQs) to be more than 5%!) You must be active and awake when you buy and sell sector ETFs. You're looking for an auction price in the marketplace that meets your personal trading criteria. Pick your price that you want to buy at and use a limit order, not a market order.
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