Ronstar
Moderator Emeritus
The difference is that Ronstar's annuity is a period certain annuity, he or his heirs will get the contractual payments no matter what, so it is akin to a bond that has sinking fund payments.
Not like SS where you have to be living to get the payments.
You would recognize a bond with sinking fund payments as an asset, right?
For a period certain annuity like Ronstar, I would just amortize based on the IRR relative to the single premium. Easy peasy.
This matches what I was thinking. I verified by phone today that if I pass away prior to the end payment, my heir gets the choice of continuing the monthly payments until the end of my annuity term or take a lump sum payment.