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Author: ResNullius Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76081  
Subject: Re: Reverse Mortgage Questions Date: 11/26/2005 5:15 PM
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If the stock market tanks the first couple of years after you invest that $400k, your 4% a year might end up a lot less than $1300 a month.

Not a chance my friend. Just take a look at the data over at REHP. Even if the Great Depression were to repeat itself the day after I put that $400K in the market, I would still be able to take out $1300 per month with a cost of living adjustment for the next 30 or 40 years. The example used a 65-year old fellow, so he'd be safe as can be, plus there would be a huge percentage chance his heirs would inherit much money. This is why annuities make no sense at all.
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