From: "Ron Peterson" 
Newsgroups: misc.invest.financial-plan
Subject: Re: non-qualified annuity
Date: Sat, 24 Dec 2005 00:06:52 -0600
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JB wrote:

> The company says she can take the residual (they call it commuted valule) as
> a  lump sum or annuitize that  but either way
> there is no tax deferment.  So it's a matter of taking the residual as
> fully taxable monthly payments or taking it as a lump
> sum and paying tax on that if I understand correctly.

> I estimate that for the lump sum to be a better deal than annuitizing the
> residual it would have to earn  around 12
> percent for about 8 years.

Web site http://www.totalreturnannuities.com/information/rates.html
indicates that she can only expect 9% on a lifetime annuity at the
current time. Since her health is already compromised, that may not be
a good deal.

-- 
   Ron