Dave <dave_and_darla[at]Juno.com> writes:
- quote -

That's the answer you get if you want payments over 15.75 years
and assume that same 4.5% rate. Which is, not surprisingly,
just a little less than the life expectancy of a 66yr old in the US.

I don't think Skip told us the age of the investor in question,
though.


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"HW \"Skip\" Weldon" <skip5700removethis[at]yahoo.com> writes:

- quote -

On my HP:

PV = 312,000
i = 4.5/12 = 0.375
N = 28*12 = 336
FV = 0
==> PMT = ? = 1634.82

(in END mode - meaning the first payment is made at the *end* of the
first period. If the first payment is made at the *beginning* of the
first period, the payment is 1628.70)

- quote -

I got the same answer from Bankrate.com's mortgage calculator
at <http://www.bankrate.com/brm/mortgage-calculator.asp
(END-mode only, of course, as mortgages are)


--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting

Elizabeth Richardson wrote:
Give a man a fish and he eats for a day, teach him to fish and he eats
- quote -


Chip

On Feb 21, 2:25*pm, Dave <dave_and_da...[at]Juno.com> wrote:
- quote -


- quote -

A 50 year old male has a life expectancy of 28 years for whom the
annuity calculator gives a payout of $1,797 per month.

The annuity vendors might be using a different interest rate than 4.5%
and the mortality curve might be giving a boost to the payout.

In a taxable account it probably pays to delay an immediate annuity to
age 70 in order to get the higher tax amortization on an annuity.

--
Ron

"Dave" <dave_and_darla[at]Juno.com> wrote in message
news:056b33db-26e3-4bf5-8167-2f2796dfb0d5[at]w34g2000yqm.googlegroups.com...

- quote -

Since the question referenced a 28 year payout, a peculiar number of years
to say the least, I suspect the OP is not 66 and is not looking for a
lifetime payout. I think the reason your example is higher than the specific
payment requested is that the annuity company isn't expecting the 66 year
old to live for 28 years.

Elizabeth Richardson

"HW "Skip" Weldon" <skip5700removethis[at]yahoo.com> wrote in message
news:03j0q4tpdjbn0gkd41gecsh2vul2j303b5[at]4ax.com...
- quote -

working too hard on the annuity side, when figuring out the loan payment is
much easier. It's a question of having loaned the bank the money, now how
much is it's payment. Skip knows this, he was just having a brain black hole
moment, I just thought maybe a lurker might want/need to give this a whirl,
too. Give a man a fish and he eats for a day, teach him to fish and he eats
for a lifetime.

Elizabeth Richardson

On Feb 21, 12:41*pm, JoeTaxpayer <JoeTaxpa...[at]comcast.net> wrote:
- quote -

The OP might want to consider an immediate annuity. An annuity of
$312,000 pays a 66 year old male $2,308 per month for life. Find out
what the payout would be in your situation at http://www.immediateannuities.com.

Dave

On Sat, 21 Feb 2009 11:13:12 -0600, "Elizabeth Richardson"
<erichktn[at]worldnet.att.net> wrote:


- quote -

Elizabeth we're going to have to work on your being more succinct with
your posts. <grin
Seriously, thanks.


-HW "Skip" Weldon
Columbia, SC

HW "Skip" Weldon wrote:
- quote -

1634.82

The excel equation is =PMT(0.00375,336,312000)
Where that .00375 is just the monthly interest as a decimal.
For all the good work you do, and kindness you offer, I'd only rib you
about the brain cramps we get as we age.

Joe

"HW "Skip" Weldon" <skip5700removethis[at]yahoo.com> wrote in message
news:rjc0q4146vpgoedpqiqnqb1f22r0d963gl[at]4ax.com...
- quote -

Try a 28-year loan calculator.

Elizabeth Richardson

I am having a terrible time with what should be a simple calculation:

How much can a saver withdraw monthly from a lump-sum of $312,000 if
the assumed return is 4.5% and the life expectancy is 28 years. (We
want it to zero out in 28 years.)

Every calculator I've found on line shows a max annual withdrawal that
is less than the interest-only of 4.5%. Jeez I feel stupid and
deserve the hell I will catch for this question.


-HW "Skip" Weldon
Columbia, SC