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That's true for the purchase of any single premium immediate annuity.

What your friend could do is compare the monthly benefit and lump sum payment her employer is offering with buying the same annuity from an insurer.

With regards to the WOA. I've yet to see a commercial insurer who will sell you an inflation-adjusted life annuity anywhere near as cheaply as the benefit you can buy from the SS Administration with a Withdrawal of Application.



i guess there's really two questions ..

is an Annuity a good idea?

if so, what's the best Annuity.

i can believe the WOA is the Best ..but maybe (depending on individual) of a Bad Lot.

though it does have the disadvantage of being 'binary' -- you have to come up with ALL the money (net taxes, net Medicare?) to get the benefit. Would be nice if half the money could get half the bennie.



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... all academic for me since no way i'll have the money
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