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Nick wrote: Her return will be far higher with an annuity, perhaps 12% per year gauranteed, and the insurance company assumes the risk that she outlives her money.

MC answered: 12% per year guaranteed? I find that *extremely* hard to believe.

And you will be extremelly wrong.

80 year old female resident of Florida

Invests 300k in life annuity

$2871 monthly income

$34,452 per annum

11.48 return for as long as she lives

Half as much may give the nut she needs, plus additional flexibility.

There is nothing wrong with immediate annuities in certain situations. They make sense sometimes.

The OP's broker was looking at 15-20k commission on the VA, that only made sense to him.

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