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Subject:  Re: Pension, annuity, or payout? Date:  9/24/2012  4:19 PM
Author:  TwoCybers Number:  70953 of 78166

Here are some items

#1 At age 47 a person has life expectancy of at least 35 years. Even if inflation averages only 2% (it has been just over 2.5% for few decades) the $400 per month figure will have purchasing power of a mere $200. Now the bad news -- life expectancy means half the people live longer.

#2 Insurance companies are the folks that make up, sell and administer annuities - both the one you could get now and one you might get in the future. Those people are not doing this for free.

#3 If you take $10,000 (not a prediction, just a figure I made up) and put it in an IRA and invest in a dull, boring index fund earning an average of 6.5% (well under average over last several decades) would grow to $35,235 in 20 years -- full retirement age for a person 37 currently is 67, but that is likely