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Tag Archive: accountants and annuitiies

Why Accountants Have Trouble Understanding Annuities

Why Accountants Have Trouble Understanding Annuities

Written By: Larry Klein in Walnut Creek, CA I am a CPA (inactive) and fortunately also able to think outside the box. Many accountants think of investments only in terms of their Internal Rate of Return (IRR). The IRR for an investment takes into account: The amount you receive over the period you own the investment The amount you get back at the end Life annuities do not have any payment at the end as the payments cease at death.  The IRR of a typical...

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