1. Financial Algebra
10 April 2018

2. announcements Homework is posted on the website
I do have physical copies of the homework
The homework is due by Friday, April 13th
There’s a lot of testing today and this week
SAT testing is today for Seniors and Juniors that need a make up (I have the list)
CTE examinations are happening this week (I have this list as well)
Over the next two weeks, I’ll be proctoring testing
That means your next quiz is also take-home
You’ll probably be getting it Thursday; it will be due next Friday

3. remaining Vocabulary for this section
Annuity
Variable annuity/fixed annuity

4. Employer-sponsored retirement plans (cont.)
Finally, the end is near…
Annuity: A financial product that guarantees annual payments to the owner for a fixed period of time or for a person's lifetime
A minimum investment is usually required.
The amount that you invest grows tax-free
You are not taxed until the payments are distributed to the investor/retiree
Most annuities have high fees associated with the initial sale
Annuities also have fees, known as surrender charges, for early withdrawal
There are two forms of annuity  fixed and variable

5. Employer-sponsored retirement plans (cont.)
Fixed annuity: An annuity where return and ultimate payment is a guaranteed amount
This is the safer of the two annuity options
There are no surprises  final payments and amount are guaranteed
Variable annuity: An annuity where the return and ultimate payment depend on the performance of the investments
If you’re a gambler, then this is the annuity for you
Most sources I looked at are vehemently against this type of annuity (Forbes, CNN, Investopedia, etc.)

6. Lottery winnings Yes, the lottery is considered to be gambling…
But in that sense, it’s no different than a variable annuity
A return is not guaranteed if you play
But if you win, then you have some options to consider:
Lump sum or annuity?
Bank solutions and investment