A floating-rate loan is a type of loan where the interest rate doesn’t stay fixed; instead, it is calculated based on a benchmark rate. So, basically, the benchmark is SOFR (Secured Overnight Financing Rate); it is published daily by the Federal Reserve Bank of New York. In short, in this type of loan, your loan … Read more
A 0% floor is a financial term commonly used in insurance policies, credit card policies & different financial instrument interest rates. Basically, it means that your earning interest rate cannot fall below 0%. Suppose you invested in a fixed index annuity that is invested in the S&P 500 index, and suppose the index goes down … Read more
An annuity is a very helpful investment instrument where investors get a set monthly income after the fund matures. However, there are various types of annuities, and when it comes to investing, we should know every type of annuity available. And variable annuity and fixed annuity are two of them. So, today let’s discuss the … Read more
A qualified variable annuity is the pre-tax income that you invest inside your IRA account or any other tax-deferred retirement plan. The investment is transferred from your gross salary, where your investments are also tax-deferred and grow tax-free until your retirement or withdrawal. At the time of withdrawal, the value is taxed as ordinary income. … Read more
A non-qualified variable annuity is a very unique tax-deferred retirement investment option where you put down your post-tax dollars into the investment, and you don’t have to pay any taxes on the investment growth until you withdraw the profit. In this annuity scheme, you don’t get any tax exemption, like an individual retirement account (IRA) … Read more
Assets Under Management (AUM) is the term that indicates the total market value of the investment managed by an investment company, mutual fund, exchange-traded fund (ETF), or by an individual on behalf of a client. The value of the assets under management is heavily dependent on the market stability and volatility, along with the fund … Read more