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Originally Posted by l2ridehd
A very good company with a good dividend, but again your placing all your eggs in a single basket. Any single company can fail.
For low risk, decent return, buy low cost index funds that cover the entire market. A total stock market fund, a total international fund, and a total bond fund. Use Vanguard, Fidelity or Schwab. The all have low cost funds. A very simple 3 fund portfolio in low cost index funds, balanced to meet your risk tolerance (probably around 40% TS, 15% TI, 45% TB) will provide a low risk approach that will allow you to withdraw 3% each year forever and 4% for 30 years. Re-balance to those percents once a year on your birthday.
If that is to difficult then just put half in each of Vanguard Wellington and Wellesley funds. They have a 50 year track record of steady returns with minimal volatility and low cost. That combination would give you 50% stocks and 50% bonds with just those two funds.
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My premise was how can you get 5% with the same risk as a single insurance co. My answer was Altria (MO 5.5%), a single company. I don't think there is any greater chance of Altria going belly up as (fill in the blank with any insurance co). However if you want to diversify and remove the single company risk, you can also pick GlaxoSmithKline (GSK 5.9%), AT&T (T 5.4%), British Petroleum (BP 5.2%), Southern Co (SO 5%) etc, in any combination or ratio that you like. Remember, my premise was that I can get the same 5% as the proposed annuity payout except, my way, preserves my principle, the annuity does not.