Quote:
Originally Posted by Bill14564
13 years looks to be simple division: 265,000/(12*1,675)=13 years, 2 months
5% interest is available today but it was not last year. Is your crystal ball good enough to be sure it will be available next year?
Even if 5% is sustained it only turns 13 years into about 17 years.
What if the OP celebrates his 90th birthday? With the fixed annuity he will see a check for $1,675; with 5% sustained he will be out of luck.
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All good points but in the end, does anyone have a crystal ball?
Sure thing is most annuities have large fees attached.
CD's to me are a bit old fasioned but hey, 5% is 5% at today's rates.
For me, I stick with a balanced stock fund with a reputable mutual fund company and enjoy the good market days and growl about the bad market days. I have to admit, I've been doing a fair amount of growling the past couple of years.