No. of Recommendations: 0
JLC: If you'll note in my original posting, I'm talking about using roughly 25% of retirement assets towards immediate annuities. Also, (point 3 in my OP), that I would spread the annuities among four or five companies to reduce the risk of defaulat by one company. Further, life insurance companies are regulated by state insurance agencies and required to maintain reserves towards their obligations--this doesn't eliminate the possibility of a life insurance company going under, of course, but it certainly reduces it. So I don't see the use of immediate annuities the way I've outlined as the equivalent of investing everything in GM, putting all my eggs in one basket, or putting my entire retirement at risk.

I do like your idea of a revolving CD or bond ladder.

BrucCM and Intercst: To me the real question is the one you posed, as to what is the "real" premium on an immediate annuity, especially for someone like me who has a reasonable expectation of living to 90 or beyond. Due to my ineptness in such things, I couldn't use the Retire Early spreadsheet. From some general reading and other things, it appears that immediate annuity rates run roughly between CD rates and Treasury rates. Does that sound about right?

Thanks to everyone for their comments.

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