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Subject:  Re: Safe Withdrawal Rate Date:  10/12/2007  1:26 PM
Author:  cliff666 Number:  59632 of 95825

Hawkin: There are no relevant fees on an immediate annuity. You give a lump sum for a guaranteed payout over a lifetime or a specific period or both. All that really matters if the amount of money you get and for how long.

Au contriare! When you buy an annuity, they base the payout on some interest rate. Now, they are not doing this out of the goodness of their hearts. They charge a fee for their services, same as for any other service, so your interest rate is reduced by that fee.

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