Finance Formulas / July 13, 2018 / Rory Wise
Immediate payment annuities are a valuable retirement planning tool in that they provide a reliable and inexhaustible income stream. In effect, they function as a risk management tool that works like a mirror image of life insurance (which pays a benefit at death).
Spreading the cost over multiple accounting periods helps provide a clearer picture of how your expenditures compare with your earnings. It also ensures that your accounting complies with federal rules for calculating depreciation.
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