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Subject:  Re: Making a Graduate Annuity Date:  4/28/2013  5:20 PM
Author:  Rayvt Number:  72123 of 83176

I didn't see a question in there, just a bunch of numbers and some non-focussed discussions.

BTW, paragraph breaks are free. Walls-of-words are hard to read.

As for annuities, I believe the only kind that comes close to making sense (financially) is a SPIA. But says even those are too costly.

All your discussion about SS and one spouse dying is rubbish, IMHO. If you depend on receiving both spouses SS payments for your living expenses, you are de-facto poor. You want to be in the position that your SS payments are as unimportant as the amount of change in your pocket. Nice if it's there, unimportant if it's not.

Stop sweating the small stuff. Spend yout effort on achieving a large portfolio net worth, not on manipulating your SS payouts.

As it turns out, I have the S&P500 data in a spreadsheet that I was using for a different but related investigation. It was simple to pull out these statistics.
S&P500 from 1/1/1950 to 1/1/2013. Including dividends (reinvested) and with 0.09% expenses.
Rolling N-year returns (all 12 monthly anniversaries)					
5 yr 10 yr 15 yr 20 yr 25 yr
Avg 10.5% 10.6% 10.8% 10.8% 10.8%
Min -6.4% -3.8% 3.6% 6.2% 7.1%
Max 29.7% 19.9% 19.2% 17.8% 17.0%
Med 11.1% 11.0% 10.8% 11.0% 10.2%

As for drawdowns, the longest time from a peak until the time it recovered was 75 months -- Aug 2000 to Nov 2006.
Next was 58 months -- Oct 2007 to Aug 2012.
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