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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 75340  
Subject: Re: Drop Stocks, Buy an Annuity? Date: 7/13/2011 4:29 PM
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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.

intercst
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