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I hate to mention the word annuity around here but is there any historical data as to the payouts of a fixed immediate annuity ?

For example, what was the payout for an annuity bought in 1980? Or 1984? etc. Obviously there are a number of variables. Is there a rule of thumb that for a 60 yr old male the rough estimate of a payout is based on interest rate x ?

Obviously someone who bought one in the early 80s wold have received a rather hefty payout since my prime market cash fund was paying me 16-18%. I only recall that because on graduating high school my grandfather gave me some money (nothing large but enough to put into a fund).

Of course in those days that was due to the high inflation but over the next 20+ years that person would have done well in real terms w/o dealing with the risk of the stock market even if the market would have done much better.

Right now with interest rates dropping like a rock. And people stretching for yield in various risky investments including going with higher allocations in the market, I wonder if someone looking back in 10 or 20 years would have said "geez, that 4% payout turned out to be pretty good". Not saying I would bet on it but the constant inflation worries and speculation on the market in mostly horribly over valued stocks doesn't make me too confident.

More than a few people have constantly believed rates would go up but that hasn't happened. My mortgage is almost paid off and I think I probably should just pay it since it has a rate of 3.75% and I'm not going to get that over the next 12 months unless I'm in the market or maybe in some LT bond fund (of course where my principal is, the difference is negligible).

Just constantly pondering options or anything but the main topic that is going on with the world right now.
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