What I am saying is that I would call a few insureres and find out if
what I suspect is true - that you can get more money by buying your
own annuity. And personally I would buy an annuity that pays 36K
(approx $440K for a 65M) per year and invest the remainder in index
funds (not an endorsement of index funds, in fact I am a timer
myself).

Good Luck!

"TooTall" <tootall[at]tootall.com> wrote in message news:<vpe5aeipegqk4f[at]corp.supernews.com> ...
- quote -

Then,,, What you are saying, if I understand this correctly, is that the
annuity is not the best choice? You like the Lump sum?

Thanks in advance.



"John Staplier" <john_staplier[at]hotmail.com> wrote in message
news:7e6b74c5.0310220949.3aabea1d[at]posting.google.com...
- quote -

You should checkout the private sector to see what you could get by
buying an annuity with the money yourself. You will *probably* find
that you can get more income that way. And if you choose an annuity,
find out what the guarantee period is. In other words, if you die in
the first few years, a beneficiary will continue to receive payments
for the guaranteed period. But the key is to shop around.

It is absolutely false to say that you would be earning 7.2% if you
choose the annuity. If you take out $44k a year and earn NO interest,
your money would last you for 14 years. IF your life expectancy is 20
years (IE you are about 62 years old) then you are only earning about
3.75% by choosing the annuity.


"TooTall" <mjblair[at]cox-internet.com> wrote in message news:<vp6nml3gnllp6d[at]corp.supernews.com> ...
- quote -

I heard Brinker's answer yesterday. That was a pretty sad answer. He
doesn't seem to understand the concept of the lump sum being fixed to the 30
year bond etc...


"Avrum Lapin" <avrum113NOSPAM[at]earthlink.net> wrote in message
news:avrum113NOSPAM-C45666.06091619102003[at]news02.west.earthlink.net...
- quote -

An important thing I left out is that the annuity is not inflation adjusted,
otherwise it would probably a no brainier for me at 7 1/4 % plus inflation.
It's a immediate annuity which pays the 44K for my life upon retirement and
will pay my wife 50% once I die for the rest of her life. That's it.





"Avrum Lapin" <avrum113NOSPAM[at]earthlink.net> wrote in message
news:avrum113NOSPAM-C45666.06091619102003[at]news02.west.earthlink.net...
- quote -

Avrum Lapin wrote:
- quote -


I have to jump in here to correct an "apparent" ERROR.

The original post did NOT mention the "type" of Annuity
that is being offered for Retirement. There are many variations,
including Life Only (described above), Life & Period Certain,
Life & Return of Balance.

Only the Life Only option would EXPIRE if the Annuitant
EXPIRES.

One would have to KNOW the Age & Heath expectancy of
the Retiree, as well as the various contracts being offered.

Cal Lester CLU



- quote -

--

In article <vp3ttr7hehb122[at]corp.supernews.com> ,
"TooTall" <tootall[at]tootall.com> wrote:

- quote -

I think you asked that question on Bob Brinker yesterdAY

$44K is equivalent to a 7.2% return on $610K - excellent for what is
essentially a fixed income investment

The issue is when do you plan to die. If you chose the annuity and died
next year you (definitely your heirs) would be pissed off. If you live
to be 100 you would be a winner

Suppose that the annuity issuer invested the 610K in 30 year Treasuries
which currently yield 5.25% and paid you the 44K once a year. If you
live less than 25 years the annuity issuer wins (in reality the number
of years is less because the annuity issuer would have to invest a
substantial portion in shorter term securities - using the 10 year yield
of 4.39% the break even point world be 11 years)

You can use the NPER function in Excel to play what if games with thse
numbers
--
Avrum Lapin avrum113[at]earthlink.net
Upland CA Remove NOSPAM from address

Get a good financial planner, somebody that is independent and will look at
your entire life plan.

To get a rough idea, take the amount of the lump sum, figure out your
expenses, also any other income sources (social security).

Go On-line and find a risk profile questionnaire and be real honest
answering the questions. Then when you know what kind of investor you are,
unless you have some significant other source you will probably come out
either being a conservative growth or needing the income type of investor.
Take the 25 year historical return and apply to the lump sum. If that return
meets or beats the annuity, then take the lump sum.

I would suggest you find a good fee based planner. If you are one those guys
getting the Verizon buy out or something like it you are being given at
least 4 different choices for combinations of pensions and lump sums. This
is one of those decisions you should get some objective, professional
advice.

Good luck.

"TooTall" <tootall[at]tootall.com> wrote in message
news:vp3ttr7hehb122[at]corp.supernews.com...
- quote -

I'm trying to decide whether to take a lump sum of 610K or 44K/yr annuity
for retirement. Any thoughts?