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URL:  http://boards.fool.com/hawkwin-quotif-you-are-not-concerned-about-25567998.aspx

Subject:  Re: Income Planning Assumption Date:  6/7/2007  7:11 PM
Author:  JAFO31 Number:  57814 of 75616

Hawkwin: {{{"If you are not concerned about leaving any principle to your estate, you could easily do an immediate annuity (think of it like a pension) and get 6-7% guaranteed for life"

JAFO: <<<<Probably not inflation adjusted>>>>

HW: {{{Incorrect. Many provide an increase for inflation.}}}

JAFO: <<<<have always understood that any money paid for any immediate annuity is gone and cannot be reclaimed>>>>

HW: {{{Also incorrect. Some can provide a guarantee return of premium (in the form of a death benefit to the benes of the original amount).}}}

buzman: "Hawkwin is correct, however inflation adjustments and return of premium lower the amount the annuitant receives."

I would like some clarification here.

Haqwkin started with a claim 6-7% guaranteed for life. Which is the claim that I challenged.

For Hawkin to be correct, there need to be immediate annuities for thsoe 55-65 that pay 6-7% guaranteed for life, with inflation adjustment.

If the only way to get inflation adjustment is to lower the the 6-7% guaranteed for life, then Hawkin cannot be correct with respect to his intial claim Abeing the claim that I challenged with the inflation adjsutment question.

Ditto for the second claim ---- I was again challenging the 6-7% guaranteed for life and return of premium (or some portion thereof).

Ignoring the HW's initial claim of 6-7% guaranteed for life and telling me about other annuties that pay less is switching horses in mid-stream.

Inquiring minds want to know, are the immediate annuities available to those of normal retirement age - say 62 - 67, that pay guaranteed 6-7% for life, adjust for inflation, and that include either a minimum pay term or some return of premium?

Curiously, JAFO


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