Questions from Personal Finance

Q: Name three strengths and weaknesses of annuities.

Name three strengths and weaknesses of annuities.

Q: Identify the factors that will help make the decision as to whether

Identify the factors that will help make the decision as to whether to take Social Security early.

Q: List the principal concerns of people in planning retirement.

List the principal concerns of people in planning retirement.

Q: Why do people save through qualified pension plans?

Why do people save through qualified pension plans?

Q: What is the principal benefit of nonqualified plans over other forms of

What is the principal benefit of nonqualified plans over other forms of savings?

Q: What does capital needs analysis provide?

What does capital needs analysis provide?

Q: What is the difference between conversion and shifting income?

What is the difference between conversion and shifting income?

Q: Give three examples of tax elimination.

Give three examples of tax elimination.

Q: Contrast marginal and average tax brackets.

Contrast marginal and average tax brackets.

Q: Randy had two term policies to compare, with costs as shown

Randy had two term policies to compare, with costs as shown below. Calculate the NPV at a 6 percent after-tax discount rate and the IRR. Which one should she select and why?