Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
People are welcome to jump on me, but I wonder whether a 77 year old woman should be in any type of annuity at all. As I understand it, the annuity income stops when the client dies, and the principal reverts to the insurance company. A 77 year old woman can probably expect to make it to 90, but not much beyond.

You can get 4.8% in a money market fund these days. I just calculated that if $150K is put in such a fund and drawn down in equal increments for 25 years, the monthly payout is $859.50. If you choose 15 years, it's $1170.62. If you choose 15 years and it's 6.5%, it's $1306.66.

Of course, you have to figure out how to make the money run out just slightly after the heartbeats do.
Print the post  

Announcements

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.
Advertisement