Mikedb
Dryer sheet wannabe
I will be 62 in April 09. I will collect Social Security about $1000/month.
I have assets I may move to Fidelity.
Based on my needs the guy there is recommending I get a fixed annuity that would cost me $120,000. I have the cash. I would get annuity of $800/month for life.
Let's assume that $800/month plus SS would work well for me. My question is about the annuity itself:
A little simple math: 120,000/800=150months
150 months/12=12.5 years
That means that if I kept the $120,000 with no interest and pulled out $800 every month, I would use it up in 12.5 years..I'd be 74.
So I guess the annuity is a good deal if I live past 74. Yes? No? Why?
Am I looking at these numbers the right way?
How does this compare with other fixed annuities?
I have assets I may move to Fidelity.
Based on my needs the guy there is recommending I get a fixed annuity that would cost me $120,000. I have the cash. I would get annuity of $800/month for life.
Let's assume that $800/month plus SS would work well for me. My question is about the annuity itself:
A little simple math: 120,000/800=150months
150 months/12=12.5 years
That means that if I kept the $120,000 with no interest and pulled out $800 every month, I would use it up in 12.5 years..I'd be 74.
So I guess the annuity is a good deal if I live past 74. Yes? No? Why?
Am I looking at these numbers the right way?
How does this compare with other fixed annuities?