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Dawg52 · 09-14-2006, 04:22 PM

Another approach in using annuities is to buy a fixed term. Let's say you bought a 10 year one that distributes $11,000/yr as in your example(no cola), you could buy this for $88,500. This would be payable to a beneficary if you were to die within the 10 year period. The return is roughly 4.48%. Still not as good as a 10 year t-bill or cd but at least you are not locking up 250k in an annuity. After 10 years, then you buy another one if you feel you need one.

I'm in a similar situation as you and I just can't talk myself into putting 25% in an annuity. A smaller one for a 7-10 year period, maybe.*

* * Below is a good website in running some annuity numbers.

http://www.immediateannuities.com/

09-14-2006, 04:22 PM	#10
Dawg52 Thinks s/he gets paid by the post Join Date: Feb 2005 Location: Mississippi Posts: 4,261	Another approach in using annuities is to buy a fixed term. Let's say you bought a 10 year one that distributes $11,000/yr as in your example(no cola), you could buy this for $88,500. This would be payable to a beneficary if you were to die within the 10 year period. The return is roughly 4.48%. Still not as good as a 10 year t-bill or cd but at least you are not locking up 250k in an annuity. After 10 years, then you buy another one if you feel you need one. I'm in a similar situation as you and I just can't talk myself into putting 25% in an annuity. A smaller one for a 7-10 year period, maybe.* * * Below is a good website in running some annuity numbers. http://www.immediateannuities.com/ __________________ Full time wuss............