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Old 02-08-2009, 08:19 AM   #5
Thinks s/he gets paid by the post
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Join Date: Mar 2006
Location: Houston
Posts: 2,431
We are at record low interest rates. This seems like an obvious time to not lock yourself in for the rest of your life. You don't say how much difference there is between the different annuity choices and the current floating interest rate. You could easily do an IRR calculation with a nominal 85 year lifespan to see what the annuity is truly paying. If it isn't significantly greater than the interest only, I don't see any advantage to locking in the payment for life.
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