From: "Miss L. Toe" 
Newsgroups: uk.finance
Subject: Re: From Drawdown to ISA
Date: Sat, 27 Jan 2007 12:36:39 -0000


"Andy Pandy"  wrote in message
news:520pc2F1mjlh3U1@mid.individual.net...
>
> "John Boyle"  wrote in message
> news:cTLbxuFk$luFFwsd@johnboyle1.demon.co.uk...
> > In message <51v43sF1m9hjmU1@mid.individual.net>, Andy Pandy
> >  writes
> > >> >> Overall extra cost? including wealth preservation? I dont think
so.
> > >> >
> > >> >Yes. How would the ISA strategy preserve wealth until death?
> > >>
> > >> By leaving the capital fully available for any use the owner may
desire.
> > >
> > >How would you ensure it lasted until death?
> >
> > By switching to Gilts and not touching it.
>
> Which would almost certainly give less income than an annuity, since an
annuity is
> basically invested in gilts or similar and includes return of capital
based on
> average life expectancy.


I think you forgot to subtract the profit and contingency elements.

Take a look at some gilt rates and long term annuity rates.......