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May 08, 2007

Comments

Chris Williams

There's another crypto-market in play if he sues: the marginal willingness of doctors to attempt accuracy on the diagnoses that they give to patients and financial institutions will drop precipitously, and we'll all lose out. Thanks a bunch, John.

jameshigham

Chris, I can understand a life annuity, especially in these days of extended lifetimes but a fixed period annuity leaves me puzzled. Surely you could invest the money at a better rate?

dearieme

If the alternative is your estate paying 40% Inheritance Tax, wouldn't it be wiser to lash out on an annuity and spend the income on loose women and tight strings?

chris

James - annuities offer you a higher incomes because folks who die early subsidize them who don't. If you invest for yourself, you don't get this subsidy.
You can, of course, get annuity-style returns in other ways. But all involve extra risk.

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