A long-time client called you to let you know they are the single ticket winner of the
Fantastic news! We've Found the answer you've been seeking!
Question:
• A single lump sum payment of $215,860,00. Or,
• An annuity of 30 annual payments of $14,333,333 per year.
Your client talked with a CPA and learned about the after-tax payments
would be as follows:
• The single lump sum payment after Federal and Georgia taxes will be $123,525,850.
• The 30 yearly annual payment after Federal and Georgia taxes will be $5,268,575 each year.Your client needs your expert advice on which option to select. In the event your client dies before all 30 years are paid, the remaining annuity payments can be passed to an heir(s).Post the response you would provide your client. Be sure to include the supporting reasons in your post.
Suggestion: Think about how you would analyze this situation, using a tool, you learned in Wealth Management I, Wealth Management II, Retirement Planning, and the first class you took with Dr. Grable when you started the Program. (HINT: the tool is commonly referred to by three letters, and the first letter is T!) Also, consider the
possible ramifications to the topics you learned in your previousclasses
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
Posted Date: