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Chuck and Nancy take their pet rock company public and are soon multimillionaires. Recognizing the volatility facing the pet rock industry, Chuck purchased a $5M
Chuck and Nancy take their pet rock company public and are soon multimillionaires. Recognizing the volatility facing the pet rock industry, Chuck purchased a $5M straight life annuity that pays $200K a year. Chuck dies in a freak rock stampede 5 years later. What amount will be in his GE?
What if it was a Joint and Survivor annuity and Chuck paid 60%? A comparable annuity for Nancy based on her current age would cost $4M and at original purchase age would cost $6M.
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