Lesson 03 Assignment Instructions:

Your client John Smith is 45. He wants to retire at the age of 55. He plans to sell his business sometime in the next five years and he is considering using the $100,000 proceeds from the sale to purchase an annuity.

1. Explain to your client what an annuity does.

2. Under what set of circumstances would the annuity be desirable to Smith?

3. If the annuity is purchased, what features should it have with respect to guarantees?

4. If Mr. Smith does not decide to purchase and annuity, what alternative uses of the $100,000 could provide him with life income in retirement?

Requirements:

Submit your assignment as a Word document formatted to APA standards. Correct grammar, spelling, and punctuation are expected. Include a title page containing your full name, course title, course reference number, and assignment title at the beginning of your Word document. References must be cited properly (APA format). This assignment must meet a minimum of 450 words (not including title page). Do not limit your paper based on word count. Do not copy and paste someone else's work. Plagiarism will not be tolerated.