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Originally Posted by donheff
The numbers are numbing me.* Azanon's test didn't cover ADD which keeps me from paying attention.*
But on the above quote I am confused.* I know little about bonds -- don't have any.* But I was under the impression that if I buy a 30 year treasury I can't take anything back until I sell it -- preferably 30 years later.* How do you "pull out the annuity payments?"
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The numbers are numbing me too.* But it looks to me kinda like 30yr T-Bond
DOES make more sense* than SPIA.* *But I can't tell for sure. Would some kind
and knowledgeable soul please have mercy, and explain to me, in very simple,
explicit, and jargon-free terms, exactly how a T-Bond works, please ?* *
My impression is, if I put my $250K in one, I'll get interest payments totalling
about 5% of that every year (is that right, given current auction results ?!?)
and this annual payment is flat over the 30 years. And then at the end of the
30yrs, I get my $250K back.* *(Never mind the possiblity of actually selling the
thing).* Also, since it's an auction (and that auction only occurs every 6 months),
is it true I won't know what rate I'm getting until I actually commit the money ?!?
Is this right ?
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