Questions from Personal Finance

Q: Briefly explain why annuities are a type of tax-sheltered investment

Briefly explain why annuities are a type of tax-sheltered investment. Do you have to give up anything to obtain this tax-favored treatment?

Q: Why is it important to check an insurance company’s financial ratings when

Why is it important to check an insurance company’s financial ratings when buying an annuity? Why should you look at past performance when considering the purchase of a variable annuity?

Q: What are the main differences between fixed and variable annuities? Which

What are the main differences between fixed and variable annuities? Which type is more appropriate for someone who is 60 years old and close to retirement?

Q: Use Worksheet 14.1 to help Bill and Shirley Hogan,

Use Worksheet 14.1 to help Bill and Shirley Hogan, who’d like to retire while they’re still relatively young—in about 20 years. Both have promisin...

Q: Many critics of the Social Security program feel that participants are getting

Many critics of the Social Security program feel that participants are getting a substandard investment return on their money. Discuss why you agree or disagree with this viewpoint.

Q: Use Worksheet 14.1 to assist Tara Easley with her retirement

Use Worksheet 14.1 to assist Tara Easley with her retirement planning needs. She plans to retire in 15 years, and her current household expenditures run about $50,000 per year. Tara estimates that she...

Q: Dan Caldwell was married on January 15, 2014. His wife

Dan Caldwell was married on January 15, 2014. His wife, Catherine, is a full-time student at the university and earns $625 a month working in the library. How many personal exemptions will Dan and Cat...

Q: Use Exhibit 14.3 to estimate the average Social Security benefits

Use Exhibit 14.3 to estimate the average Social Security benefits for a retired couple. Assume that one spouse has a part-time job that pays $24,000 a year, and that this person also receives another...

Q: Use Exhibit 14.3 to determine the annual Social Security benefit

Use Exhibit 14.3 to determine the annual Social Security benefit for Bob Lemus, assuming that he is an “average” retiree. Bob is 65 years old and earns $18,000 a ye...

Q: Ellen Honeycut has just graduated from college and is considering job offers

Ellen Honeycut has just graduated from college and is considering job offers from two companies. Although the salary and insurance benefits are similar, the retirement programs are not. One firm offer...