What are the pros and cons of purchasing the annuity

Assignment Help Accounting Basics
Reference no: EM131627454

Question: Obtain from a licensed salesperson or stockbroker a prospectus and any other literature available on a popular deferred annuity. Analyze the terms, and answer the following questions.

a. What is the current interest rate? How does it compare to T-bill rates? To AAA bond yields?

b. What is the minimum guaranteed interest rate on contributions? How does it compare to T-bill rates? To AAA bond yields?

c. What, if any, tax benefit does it offer the investor?

d. What payout options does it offer? Is it a fixed or variable annuity? Which payout option do you find most appealing?

e. What sales charges and administrative fees are levied on this annuity? How does it compare to other annuities?

f. What is the rating of the financial strength of the insurer given in Best's Insurance Reports?

g. What are the pros and cons of purchasing this annuity?

Reference no: EM131627454

Questions Cloud

Toyota motor and honda motor companies : What is the relationship between Toyota Motor and Honda Motor companies and their respective employees and investors?
What are some of the ways in which belief in souls and gods : What are some of the ways in which belief in souls, gods and other spiritual beings vary among societies? Compare and contrast at least two different societies.
Considering an investment in new plant : Polycorp is considering an investment in new plant of $3.25 million. The project will be partially financed with a loan of $2,000,000
A standard from the reading standards for informational text : A standard from the Reading Standards for Informational Text strand from the Arizona English Language Arts (ELA) Standards.
What are the pros and cons of purchasing the annuity : Obtain from a licensed salesperson or stockbroker a prospectus and any other literature available on a popular deferred annuity.
What is item in trobovichs article that you disagree with : Post a 50 =100 word response to the following question. You do not need to include title page. What is one item in Trobovich's article that you disagree with?
Describe what treasury stock is : Describe what treasury stock is. State why corporations buy back their own stock, and explain the accounting for the purchase of treasury stock.
Discuss what is imputed liability : What is Implied Authority (Apparent Authority) and Express Authority (Actual Authority), What is imputed liability
What criteria would you draw the line between the two sides : Is there a middle ground in this debate, and if so, under what circumstances and using what criteria would you draw the line between the two sides?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What effect will reclassifying the investments

What effect will reclassifying the investments have on the current ratio? Is Ross's true financial position stronger as a result of reclassifying the investments

  Capital stock is sold at an amount greater than stated value

Capital stock is sold at an amount greater than stated value.

  Find the coordinates where the tangent line is horizontal

The family of curves known as the Pear-shaped Quartics have equations of the form b2y2 = x3 (a - x), where a and b are constants. Find the (x, y) coordinates where the tangent line to the curve is horizontal (that is to say, where y' = 0.)

  The lion company show the dividend revenue

The fair values of all of Wolf's assets, net of liabilities, were equal to their book values of $6,500,000.

  Building renovation partnership

Joe proposes that he direct the IRA to sell the securities and to use the proceeds to invest in the building renovation partnership.

  Spartan corporation was organized on january 1 2011 with an

1.for small stock dividends by what amount are retained earnings reduced? a. par value of the stock b. par value of

  Distinguish between current and long-term assets

Is there a difference in approach to valuation by US GAAP and IFRS? Discuss and note two or three specific differences.

  Kloppenberg company prepares financial statements annually

Kloppenberg Company prepares financial statements annually. During the year the following selected transactions occurred.

  Prepare the journal entries to record the acquisition

Prepare the journal entries to record the acquisition of the land and the building.

  What amount should orca report as the cumulative effect

In its 2017 financial statements, what amount should Orca report as the cumulative effect of this accounting change

  This problem comes from managerial accounting a focus on

this problem comes from managerial accounting a focus on ethical decision making 5th edition jackson sawyer and

  A final and overall review of audit evidence

A final and overall review of audit evidence and the final statements of a client by the engagement partner,

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