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Roberto is 60 years old. He is in poor health. Doctors are not positive about his long term prospects. Roberto has a chance to fund an annuity (non-guaranteed) through his work retirement plan. He has $1.5 million he is considering putting into the annuity. What should Roberto do? What do you recommend? Why?

Question 3 4 pts If one converts a traditional IRA to a Roth IRA, which of the following is a likely benefit? Your heirs (children) may continue to make tax-free withdrawals in the future after you are gone. You lose half of your purchasing power. O You will not know for sure what your future tax bracket is, but you will know that you only need to pay half of whatever it is on your Roth assets. O You will get to begin making RMDs. Question 4 4 pts Jerry and his wife Atric each have a traditional IRA. Each IRA has a current balance of $400,000. Jerry decides to convert his to a Roth IRA. Jerry has a cash account with $136,000 in it. His household is in the 34% tax bracket. After converting, what is Jerry's actual spending power (not counting his wife's assets)? O $264.000 O $400,000 Zero. ($0.00). O $536,000 Question 1 4 pts David L. Roth and his business partner Eddie V. Hale both have traditional IRAs. Each has $500,000 in his IRA account and $185,000 in cash outside of the IRA. They are both in the 37% federal tax bracket. If David decides to convert his IRA to a Roth (of course!) IRA, which of the following is true immediately? ONeither of them has any spending power. They both have purchasing (spending) power equal to $500,000. David's spending power is more than Eddie's. O Eddie's spending power is more than David's. Question 2 4 pts One benefit of converting a traditional investment account to a Roth is you no longer have to file an income tax return each year. O you will begin to enjoy tax-deferred savings. O you lose half of your purchasing power. O the uncertainty associated with future tax brackets is removed. Question 3 4 pts If one converts a traditional IRA to a Roth IRA, which of the following is a likely benefit? Your heirs (children) may continue to make tax-free withdrawals in the future after you are gone. You lose half of your purchasing power. O You will not know for sure what your future tax bracket is, but you will know that you only need to pay half of whatever it is on your Roth assets. O You will get to begin making RMDs. Question 4 4 pts Jerry and his wife Atric each have a traditional IRA. Each IRA has a current balance of $400,000. Jerry decides to convert his to a Roth IRA. Jerry has a cash account with $136,000 in it. His household is in the 34% tax bracket. After converting, what is Jerry's actual spending power (not counting his wife's assets)? O $264.000 O $400,000 Zero. ($0.00). O $536,000 Question 1 4 pts David L. Roth and his business partner Eddie V. Hale both have traditional IRAs. Each has $500,000 in his IRA account and $185,000 in cash outside of the IRA. They are both in the 37% federal tax bracket. If David decides to convert his IRA to a Roth (of course!) IRA, which of the following is true immediately? ONeither of them has any spending power. They both have purchasing (spending) power equal to $500,000. David's spending power is more than Eddie's. O Eddie's spending power is more than David's. Question 2 4 pts One benefit of converting a traditional investment account to a Roth is you no longer have to file an income tax return each year. O you will begin to enjoy tax-deferred savings. O you lose half of your purchasing power. O the uncertainty associated with future tax brackets is removed

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