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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Re: Drop Stocks, Buy an Annuity? Date: 7/14/2011 3:48 PM
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Case58 asks,

From some general reading and other things, it appears that immediate annuity rates run roughly between CD rates and Treasury rates. Does that sound about right?


One way to look at at is the return based on the Treasury yield curve. Berkshire Hathaway has an online calculator that shows a 3.60% return for a 60-year-old buying a life annuity. If you bought a straight 30-year term annuity (i.e. 360 fixed monthly payments) you should get a return somewhere around the 30-year Treasury yield (4.25%).

http://www.brkdirect.com/spia/EZQUOTE.ASP

intercst
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