No. of Recommendations: 0
For clarification, let me restate:

Life annuities do not have organic growth. Guarantted 'death benefits', inflation growth, period certains or joint-life...all of these are funded through adjusting the monthly payment amount.

If you understand Time Value of Money, you'll understand that the present value of every conceivable combination of payouts will be less than the present value of a simple life annuity.

In other words, there's no free lunch.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.