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Subject:  Re: Life Annuity Date:  5/20/2013  6:11 PM
Author:  intercst Number:  72253 of 90454

pauleckler posts,

You said life annuity. Most of them pay for the life of you and or your spouse. You can also get one that will pay for say 10 yrs, and let your other funds grow and then buy another one later (when hopefully interest rates will be higher and you will get more for your money). You can also buy a larger one later to provide more income ideally with profits from your other investments.

These are all immediate annuities. There are also variable annuities, where you pay in for a while, invest the funds in mutual fund like investment choices and then annuitize for monthly payments later. These tend to be expensive and highly profitable for the salesman. Regardless of the sales pitch, avoid them if you can. There are better ways to invest your funds.


Immediate life annuities also have very high costs (20% to 30% of the purchase price is lost to the insurance company's fees, expenses, and costs), but are not disclosed to the buyer since they don't fall under SEC regulation.

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