Journal opinion article Essay Example | Topics and Well Written Essays - 750 words

Journal opinion article - Essay Example The article of Scism and Tergesen Getting Smart about Annuities attempts to address the economic issue in the U.S economy. The authors attempt to reveal the changes in the stock market because of the shift from defined benefits to pension plans contribution in the U.S economy. Annuity markets have started expanding but the slow economic growth in the global market has become a major problem. Annuity refers to the payment made for life insurance or it is simply referred as the U.S financial products; thus the article attempts to address the way consumers can become elegant about annuities. Annuity issue has become among the most aspects for the recent decades because of the need to improve the quality of life (Scism and Tergesen para. 1). Although financial advisers have not been popular with annuities, it has become one of the hot products in the U.S market. The products do not offer the potential for outsized gains but there is a guarantee for some benefits (Scism and Tergesen para. 3). Consumers need to be smart when dealing with these products because there are some associated risks that may arise including investment losses but it appears that annuities have irrefutable appeal. At first, annuity offers a way for restoring some financial security for golden years but there is no clear evidence that retirees with standard paychecks will be happier than those relying on exclusively social security supplement. It appears that annuities will not offer contentment to consumers; hence one needs to be smarter before making a decision about life annuity. Moreover, annuities in the contemporary global financial markets have an undeniable appeal for those grappling with investment losses (Scism and Tergesen para. 4). The problem with this is because investors may have a common idea about the importance of annuity but a few of them may recognize the strategies available for making these financial products a part of their assets. Therefore, it is crucial for one to figu re out the total amount of products one needs to purchase maybe whether he or she wants to put money to work immediately or slowly and what to invest with the remaining balance. Scism and Tergesen offer significant and best ways that one should do in order to achieve success or avoid any financial losses (Scism and Tergesen para. 3). One of them is the immediate gratification because immediate annuity can enable one to convert payment for a month, quarterly or yearly income for life. Although most immediate annuities are fixed, immediate annuities can offer considerable higher sustainable revenue than the ones being generated from the venture portfolio. For example, an older a man who purchases an immediate annuity is likely to receive about 8.4 percent of the total amount which he instead (Scism and Tergesen para. 5). This is significant because the payment has interest rates and they are guaranteed to continue increasing for the rest of one’s life. Another way is longevity rider and this is one way of preserving more for purchasing a differed-income annuity (Scism and Tergesen para. 7). This generates an income for life and one may benefit; however, the economists have attempted to argue as to whether it is significant for one to purchase for a longevity rider or conventional immediate annuity. This is in case the financial benefits outweigh the annuity pool; thus one may likely to undergo losses. However,

IP 5 Essay Example | Topics and Well Written Essays - 750 words

IP 5 - Essay Example 2. The second position is in Maryland, earning $65,000 per year. You found a starter duplex that you can purchase with an assessed value of $135,000. Property taxes average 2.4% of the assessed value. The state sales tax rate is 1% higher than in Pennsylvania, and it also applies to food and clothing. Marylands state income tax rate is 1.5% higher than Pennsylvanias. With the data above, complete the following table, with all values rounded to the nearest cent. Note that the Difference column is the difference between Pennsylvania’s and Maryland’s values. (Hint: Property tax only applies to housing; state sales tax only applies to purchases and food and clothing, when applicable; and income tax only applies to the salary.) The difference in cost of living between the two locations (Maryland and Pennsylvania) based on the differences in sales tax, income tax, and property tax is $3,033.75. In other words, I have to pay an additional $3,033.75 in taxes in Maryland as compared to Pennsylvania. This does not much influence which job to choose, as the difference in taxes (sales tax, income tax, and property tax) of $3,033.75 is much less as compared to the difference in salary $15,000 between the two