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https://boards.fool.com/greetings-mary-and-welcome-you-asked-10615637.aspx
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| Subject: Re: fixed annuity-keep or roll? | Date: 2/21/1999 10:59 AM | |
| Author: TMFPixy | Number: 8681 of 107835 | |
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Greetings, Mary, and welcome. You asked: <<I'm a teacher with about $10,000 in a fixed annuity paying only about 5%per annum. The surrender charge is 14%. Any formulas for figuring how long until I recoup my loss if I roll it over into another non-annuity retirement plan consisting of stocks?>> Ataloss gave you a great formula for determining your breakeven point for such a switch. OTOH, if working with exponents seems intimidating, you can always set up a spreadsheet comparison of $10K compounding at 5% per year (or 0.4167% per month) against $8.6K compounding at your estimated rate of return (divide by 12 to get the monthly rate). Either method will get you there. Regards….Pixy |
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