What Is AIR (Assumed Interest Rate)? (SIE and Series 7 Exam)
The Assumed Interest Rate (AIR) is the benchmark return used to calculate variable annuity payments during the distribution phase. If the actual investment return beats the AIR, your payment goes up. If it falls short, it goes down. This is one of the most tested annuity concepts on the Series 7 and SIE exams.
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