Like to save money for a comfortable retirement

Assignment Help Finance Basics
Reference no: EM131047855

Todd, age 28, would like to save money for a comfortable retirement. He is considering purchasing a cash-value life insurance policy that has the following characteristics:

¦ The premiums are invested in separate investment accounts selected by the policyholder.

¦ Interest income and capital gains are not currently taxable to the policyholder .

¦ The frequency and amount of premium payments can be changed as financial circumstances change.

¦ A mortality and expense (M&E) charge is periodically deducted from the cash value account. Based on the above characteristics, what type of life insurance is Todd considering purchasing? Explain your answer.

Reference no: EM131047855

Questions Cloud

What is the taxable equivalent yield on municipal bond : What's the taxable equivalent yield on a municipal bond with a yield to maturity of 5.5 percent for an investor in the 33 percent marginal tax bracket? Round to 2 decimal places
Major difference between debt and equity : Which of the following does NOT represent a major difference between debt and equity?
What are the implications of these advancements : what are the implications of these advancements for operations managers with regard to detecting and preventing failure?
Used to insure the human life value of an individual : Life insurance policies have different characteristics. For each of the following, identify the life insurance policy that meets the description: a. A policy where the face amount of insurance increases if the investment results are favorable
Like to save money for a comfortable retirement : Todd, age 28, would like to save money for a comfortable retirement. He is considering purchasing a cash-value life insurance policy that has the following characteristics:
How compatible are these three approaches : What evidence is there in theDupont story for your answer?As a change manager, to what extent could you utilize insights from each approach?
Purchased a cash-value life insurance policy : 1. She recently purchased a cash-value life insurance policy that has the following characteristics: ¦ The frequency and amount of premium payments are flexible.
Is it longititional or cross sectional study : a foreman thinks that the low efficiency of the machine tool operator is directly linked to the high level of fumes emitted in the work shop he would like to prove this to his supervisor through a research study ?
What option strategy could you follow in order to make money : After watching the prices of drug stocks move up and down by large amounts, you seek an investment strategy that will succeed in spite of these unpredictable fluctuations. You notice that Merck stock is trading at 36.875. What option strategy could y..

Reviews

Write a Review

Finance Basics Questions & Answers

  What decisions would be made using the mini- max regret

Develop the opportunity loss table for this situation. What decisions would be made using the mini- max regret criterion and the minimum EOL criterion?

  Consider a firm that repurchases shares from its

consider a firm that repurchases shares from its stockholders in the open market and explain why this action might be

  Lang industrial systems company lisc is trying to decide

lang industrial systems company lisc is trying to decide between two different conveyor belt systems. system a costs

  Compare and contrast each of the dividend policies described

Combine the policies described in parts b and c. When the dividend is raised, raise the excess dividend base  from $1.00 to $1.10 per share. Compare and contrast each of the dividend policies described in parts a through d.

  Develop a creative strategy for an advertising campaign

Explain the objectives of an integrated marketing communication and its use of the elements of the promotional mix. Evaluate the use of alternative mediain an advertising campaign.

  Strongest rationale for acquisitions

Describe and justify your choice of five of the Strongest rationale for acquisitions. Explain and justify your choice of five of the Weakest rationale for acquisitions.

  Research tools and techniques of managing data

You have explored many options for managing data as well as its importance to the overall health of an organization in making well-informed decisions.

  Taxable gain must be reported on the sale of the truck

The truck's estimated life was four years at the time of purchase. It was accounted for by using straight line depreciation with zero salvage value. The truck was sold yesterday for $19,000. What taxable gain must be reported on the sale of the tr..

  Outline a financial plan for your small business

Outline a financial plan for your small business. "Island Auto Detailing" Develop a guerrilla marketing strategy for your small business. Discuss the most appropriate location for a second store (an actual street address). Explain your reasoning. Out..

  Find the expected rate of return for mason common stock

Mason Corp. paid a dividend of $1.85 per share last quarter on its common stock. The company's stock is currently selling for $88.45 per share, and the growth rate in dividends is 6%. Find the expected rate of return for Mason common stock.

  Whats the present value of 100 to be received in 3 years if

whats the present value of 100 to be received in 3 years if the interest rate is 10 annual

  What will the price of this bond be

A $1,000 bond has a coupon rate of 10 percent and matures after 8 years. Interest rates are currently 7%.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd