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Many forms of rental real estate can produce such a return and better, even after deducting management fees, expenses, etc.

You are right about that. We have a loft we rent out and get a little over 7% ROI. It is quality income too, no SE tax. I have considered picking up more rentals, but as with everything, you have to weigh the pros and cons. So far, the cons are winning this one.:-)

Nothing wrong with annuities, as long as you aren't "fooled" into thinking that just because it hands you 5%, you are yielding 5%, because part of that 5% is principal being returned to you (and whatever principal remains at the end, the insurance company lees, of course).

I don't think that statement is correct. As I understand it, while you are getting some principal returned in each payment, the investment is yielding 5%. Of course, every month the amount yielding the 5% gets a little smaller as the principal shrinks.

Dunno, but luckily I have time to ponder. I appreciate the discussion though.


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