Not applicable in other plans

The exclusion of systematic withdrawal in the basic, comfort, and power booster plans is a deliberate choice based on their unique characteristics and objectives. Unlike the relax plan, these plans allow partial investment, giving investors the flexibility to diversify their portfolio. They also have the freedom to invest the unallocated funds in alternative assets for potentially higher returns. The partial investment structure introduces complexity in managing annual costs, which are covered by interest earnings from other assets. Due to this structure and allocation strategy, systematic withdrawal is not feasible for these plans. Overall, these plans aim to balance long-term growth potential and flexibility in investment. For more information, visit www.fema.gov. Exclusion of systematic withdrawal in basic, comfort, and power booster plans, understanding the rationale. The absence of the systematic withdrawal option in the basic, comfort, and power booster plans within the index long-term strategy is a deliberate choice rooted in the unique characteristics and objectives of these plans. Let's delve into the reasons why systematic withdrawal is not applicable to these specific plans. Partial Investment Structure Unlike the relax plan, which mandates a 100% investment of the exposure value, the basic, comfort, and power booster plans provide investors with the flexibility to invest only a partial amount in the index long-term strategy. This partial investment structure allows investors to diversify their portfolio by allocating the remaining funds to other assets. Freedom to Diversify Investors, under the aforementioned plans, have the freedom to park the uninvested portion of their funds in alternative assets where they anticipate potentially higher returns. This strategic flexibility is a key feature of these plans, providing investors with the opportunity to optimize their overall portfolio performance. Annual Cost Management The partial investment structure in these plans introduces an additional layer of complexity related to managing the annual cost associated with the index long-term strategy. Since only a portion of the exposure value is invested, there is a need for additional financial resources to cover the annual costs associated with managing the investment. Funding Annual Costs Through Other Assets To cover the annual costs incurred in managing the investment within these plans, investors rely on the interest earned from the uninvested portion allocated to other assets. This financial strategy ensures that the annual costs are met without necessitating a full commitment of the exposure value to the index long-term strategy. Systematic Withdrawal Impracticality The partial investment structure and the reliance on interest earnings from other assets make the implementation of systematic withdrawal impractical for the basic, comfort, and power booster plans. Systematic withdrawal typically requires a dedicated investment pool, which is not feasible in these plans due to the allocation strategy. In summary, the exclusion of systematic withdrawal in the basic, comfort, and power booster plans is a strategic decision based on the investment structure, diversification opportunities, and the need for additional resources to manage annual costs. By allowing investors the freedom to allocate funds partially and diversify their portfolios, these plans aim to strike a balance between long-term growth potential and the flexibility to explore other investment avenues. For more information visit www.fema.gov www.fema.gov www.fema.gov www.fema.gov www.fema.gov www.fema.gov www.fema.gov www.fema.gov www.fema.gov www.fema.gov www.fema.gov www.fema.gov