Investors can invest in a wide variety of annuities and can also use different annuity settlement options to meet specific retirement needs. For each of the following retirement objectives, suggest either (1) a specific annuity; or (2) an annuity settlement option that can be used to meet the objective. Justify your answer. (Note: Treat each situation separately.)

a) James, age 35, is a sales representative and plans to retire at age 67. His monthly income varies. He would like to invest in an annuity that allows him to change the frequency and amount of premium payments.

b) Nancy, age 67, plans to retire in 6 months. She has RM200,000 in a savings account. She would like to receive lifetime monthly income that is guaranteed.

c) Jennifer, age 63, plans to retire in 90 days. She has RM100,000 to invest in an annuity and would like to receive lifetime monthly income to supplement her retirement benefits. However, she is concerned that she might die before she receives back the amount invested.

d) Fred, age 70, recently retired and has RM50,000 to invest for additional income. He wants the retirement benefits to be protected against the risk of inflation.

e) Mary, age 75, is a widow with no dependents who needs additional retirement income. She has RM25,000 to invest in an annuity. She wants to receive the maximum amount of monthly annuity income possible.

f) Kathy, age 32, would like to invest in the stock market, but she is conservative and risk averse. She would like to participate in any stock market gains, but she also wants her principal guaranteed against loss.