For the equity based investment option, the credited rate is:
The margin is 2.25%
How does this work? Let's say the S&P gains 5%; does that mean the rate is 5% - 2.25% = 2.75%, or the 2.25% of that 5% (=.1125%) is the margin? What happens if the S&P loses value?
Thanks!
Quote:
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Each day an amount is credited to the account equal to the daily percentage change in the S&P 500 total return index minus the margin discussed below. The credited amount can be positive or negative.Withdrawals from this account for any purpose are not subject to any market value charges. |
How does this work? Let's say the S&P gains 5%; does that mean the rate is 5% - 2.25% = 2.75%, or the 2.25% of that 5% (=.1125%) is the margin? What happens if the S&P loses value?
Thanks!
EoM6: Equity-based account margin