Purchase Solution

annuities vs. conventional investments

Not what you're looking for?

Ask Custom Question

Discuss the advantages and disadvantages you see associated with annuities vs. conventional investments in securities like stocks. In your opinion, is it better to make investments that generate ongoing annuities payments, to invest in the equity market, or combining the two? Please provide references and a min of 250+ words.

Purchase this Solution
Solution Summary

Annuities versus conventional investments are determined.

Solution Preview

http://www.investopedia.com/university/annuities/annuities2.asp

Discuss the advantages and disadvantages you see associated with annuities vs. conventional investments in securities like stocks. In your opinion, is it better to make investments that generate ongoing annuities payments, to invest in the equity market, or combining the two? Please provide references and a min of 250+ words.
Annuities are among the most unique types of investments available, and there are many reasons why investors look to them as a key retirement savings vehicle. Some of the key benefits provided by annuities are:

Advantages provided by annuities include the ability to receive tax deferrals wherein the annuities operate as ...

Solution provided by:
Stephen Washington, MS
Education
  • BS, Sam Houston State University, 1903 University Avenue, Huntsville, Tx 77340
  • MS, Prairie View A&M University
Recent Feedback
  • "awesome"
  • "awesome"
  • "Awesome appreciate the assistance."
  • "Thanks awesome. more to follow"
  • "awesome, Thanks for the assistance"
Purchase this Solution
Free BrainMass Quizzes
Labor and Delivery

Do you know about the stages of delivery? Find out with this quiz!

First Aid

Do you know how to provide first aid?

Test your health planning and program evaluation knowledge

Health planning and program evaluation is an important aspect of the Health Sciences' field. Organizations and communities must understand the needs of their audiences, and a way to obtain this datum is through proper design and assessment. This quiz will test your ability to understand the importance of planning and evaluation in the health sector.

Celiac Disease

This quiz will provide a brief introduction to Celiac Disease. Questions will focus on definitions and symptoms.

Crohn's Disease

How much do you know about this condition?

View More Free Quizzes
Related BrainMass Solutions

  • Concepts of the Time Value of Money

    Indirectly, it would also show the effects of inflation on their investments.

  • NPV of an investment with two different annuities

    How do you calculate NPV of an investment with two different annuities? NPV is one of the techniques of evaluating the viability of the project. NPV is the difference between the present value of future cash flows and the initial investments.

  • Accountants to have an understanding of compound interest

    With annuities, they must know how to calculate the current worth annuities, as well as the quantity of continuing payouts, the number of payments and possibly the discount rate.

  • Annuity versus revenue stream

    Types of annuities: Fixed annuities Variable annuities Equity-indexed annuities Immediate annuities Longevity annuities An annuity is an insurance product that pays out income, and can be used as part of a retirement strategy.

  • Your aunt would like to minimize tax on investment income.

    She can invest a portion in annuities of a type that accumulate earnings tax free until distribution. If her situation is such that her taxable situation will change in the next few years, she can delay reporting income by using annuities. 3.

  • NPV vs. IRR

    Non-conventional investment has cash outflows mingled with cash inflows throughout the life of the project. Non-conventional investments have more than one change in the signs of cash flows; for example, - + + + - ++ - +.

  • Investment offering the highest rate of return

    Determine which of the following three investments offers you the highest rate of return on your $1,000 investment over the next five years.

  • Investment Vehicles and Techniques

    In such a market the investment vehicles used by me will stocks, annuities, and mutual funds.

  • Conventional Market-Based Policies vs. Sustainability

    580307 Conventional Market-Based Policies vs. Sustainability Define the concept of externalities. What recent or current events have illustrated this concept? Conventional Market-Based Policies vs. Sustainability A.C.

View More Related Solutions