annuity inputs - emoney annuity entry inputs.… · -guaranteed yrs of payout: if payout is based...

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



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.



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.



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.



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.



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.



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.



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.



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.

annuity inputs - emoney annuity entry inputs.… · -guaranteed yrs of payout: if payout is based...

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