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Case58 asks,

So what is the best way to evaluate an immediate annuity?

Because of the adverse selection and high insurance company costs, I wouldn't consider an annuity unless I thought I was in the top 15% of the mortality curve. For a 60-year-old, that means you think there's a good chance you'll live to be at least 90.

If you "buy" your annuity by delaying your Social Security until age 70 instead of turning a big wad of cash over to an insurance company, the odds are a bit better. The break-even point is around 80 years of age.

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