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Subject:  Re: Optimal level of annuity purchase may b nega Date:  9/16/2013  9:46 PM
Author:  buzman Number:  72909 of 81338

>>>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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