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Author: rjstanford Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 757320  
Subject: Re: Immediate Annuity vs reg port? Date: 2/1/2000 1:30 PM
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Let's say my rent was $700 per month, an immediate annutiy that gave me say $1000 per month would sure be a nice security feeling. If you don't value security as much than maybe not.

If you had said 'mortgage' I would have agreed with you. In fact, at times like these you can get annuities that pay around the same interest as a mortgage costs -- if the tax advantages work for you, you might do very well indeed matching the two up.

However, what do you do in 20 years when your rent is up to $1264 (700*(1.03^20)) due to inflation and your annuity is still putting out its $1000? Sure, you could have invested the surplus earlier, but that somewhat defeats the worry-free point of the annuity doesn't it?
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