UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next
Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75339  
Subject: Re: Annuities vs Investments? Date: 3/15/2007 3:12 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 4
retof writes,

In the March 2007 AARP Bulletin, beginning on page 22 there is an article titled "Fixed for Life". It's about immediate annuities as an income producing vehicle. It makes the point that a retired couple, each 65 could purchase an annuity for $100,000 and could recieve about $584 per month as income.

If you crank through the numbers that works out to just a little over $7000 per year for about a 7% return on your initial $100,000.

That seems like a pretty high rate of return for an annuity. Any ideas?


Don't forget that you are giving away the $100,000 principal to the insurance company when you purchase the annuity, so it's not a 7% return. You can keep your $100,000 and get a 5.25% return today on a 5-year FDIC-insured CD.

intercst
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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