Laurie is thinking about investing in one or several of the following investment options:
Corporate bonds
529 plan
Dividend-paying stock
Life insurance
Savings account
Treasury bonds
Growth stock
a. Assuming all seven options earn similar returns before taxes, rank Laurie's investment options from highest to lowest according to their after-tax returns.
b. Which of the investments employ the deferral and/or conversion tax planning strategies?
c. How does the time period of the investment affect the returns from these alternatives?
d. How do these alternative investments differ in terms of their nontax characteristics?