Date: Fri, 23 Nov 2007 18:57:13 -0600
From: "Elizabeth Richardson" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Annuity with lifetime withdrawal and Guaranteed Benefit?
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 wrote in message
news:eaf19740-3605-4909-ab13-ac2a0ac2b6d6@s8g2000prg.googlegroups.com...
>
> The point I and others were making was taking just the income out is
> as good as reducing the principal due to inflation. If you are earning
> 5% interest, you can only take out 1.5% to leave 3.5% available to
> cover inflation. Spending the entire 5% is the equivalent of a 3.5%
> principal reduction.

Well, the point I was making is that the interest amount in question is not
his entire portfolio. He has other resources for which he currently has no
need. There is no way he is reducing his principal. If you'll read my entire
message, I did say that I agree he needs to invest this at least a portion
of this additional money in stock mutual funds to address inflation.

Elizabeth Richardson