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Subject:  Re: Annuities..pros and cons Date:  12/8/1998  1:34 AM
Author:  RandomThoughts Number:  348 of 20640

I think that Variable Annuities are a bad idea for the vast majority of people, but I believe that Fixed Annuities that terminate at death are an excellent idea for many.

If you put say $500,000 in a Fixed Annuity, it pays you $37,000 the first year and increases 3% each year after that, for as long as either you or your spouse is alive (so $38,110 the second year, etc.). That is a 7.4% return GUARANTEED FOR LIFE, with a mild inflation adjustment.

I wouldn't put all of my money in one; I'd keep some back so that, if inflation went wild for a few years, the extra could be invested in stocks that grow faster than inflation. But half or more of all retirement money would be a good idea for many.

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