Hawkwin writes,According to a link that intcst (??) posted, even straightforward SPIA have massive fees that the customers just don't recognise.Also not true.</snip>Here's the article.The high cost of a no-fee, no-commission Single Premium Immediate Annuity (SPIA). http://retireearlyhomepage.com/annuity_costs.html</snip>It's just arithmetic. You calculate the expected present discounted value (EPDV) of the SPIA and compare it to the quote from the insurance company.I don't care whether you call it a fee, an expense, a commission, a "spread", or a big stick up the behind. It's 20% to 30% of the purchase price that's being skimmed off the top by the insurance company that's not being disclosed.It interesting to note that if you applied the 15 basis point annual fee of a Vanguard fund over the entire 50 to 60-year life of the annuity pool, it would amount to only about 1.25% of the purchase price. It's very expensive to involve an insurance company in your retirement plans.intercst
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