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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 399.01+0.1%Dec 19 4:00 PM EST
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To: Maurice Winn who wrote (90844)5/31/2012 3:02:05 PM
From: carranza25 Recommendations  Read Replies (1) of 218621
 
The difficulty in the scheme is not to guess how long the annuitant might live but to account for future inflation and interest rates in determining the payments under the annuity.

If future inflation is substantial and/or currencies become de facto devalued via excessive printing, as I expect will happen, putting money into annuity that might produce a severely devalued income stream would be unwise. Add to the calculus the fact that annuities are priced substantially on the basis of current interest rates, which are presently very low, and it is easy to conclude that anyone who purchases an annuity now would get his money's worth unless he lives to an age much beyond actuarial calculations.

I wouldn't buy an annuity under any circumsances. The fees can be outrageous.
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