If you are going to take the Series 6 exam, you must need to familiarize yourself with the meaning of "bonus/enhancements" as it relates to variable annuities.
A typical bonus would be when an annuitant puts in a lump sum of, say, $20,000, the variable annuity would add, for example, an extra five percent bonus, amounting to an extra $1,000.
But the SEC warns that these types of "bonus/enhancements" often are accompanied by increased expenses in other areas. There is no free lunch.
PS Watch for Bob Eder's forthcoming book, Study for the Series 6 Exam.
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