The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Optimal level of annuity purchase may b nega||Date: 9/16/2013 9:46 PM|
|Author: buzman||Number: 72909 of 75340|
>>>Immediate life annuity purchasers are leaving assets to someone. The 25%-30% of the purchase price being skimmed off in fees, commissions and costs is going to the insurance company.,<<<
SPIAs don't have expenses 25% to 30% of the initial purchase.
Annuities can be very expensive but it's simply incorrect to assume SPIAs have upfront costs 25%-30%.
Sometiems a SPIA makes sense and sometimes they don't.
Plus if you live long enough the insurance company pays you...of course that's an oversimplification but at least it's more correct than "25% to 30% of the initial purchase".
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