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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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