Annuities
and Sinking Funds
1. You need to know how annuities
work because many financial planners advise their clients to have them for
retirement planning. Do you think that you need them? If so, then how old
should you be when you buy one?
· What part does the stock market play in an
annuity?
There are three questions that you
must consider.
What if you live too long?What happens if your
investments lose money?What happens when inflation
hurts your investment?
· While you cannot predict the future, what
directions would you take to decide on the best way for you to plan?
· When should you consider making these plans?
2. Search the internet to find an
article or real-world application involving annuities that you find interesting
and informative. Present this article to the class and explain why you choose
the example. Include the URL for the site you used. Do not copy the text in the
site verbatim. You should summarize your findings.
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