Fidelity annuity info

Dave Dettmer (800-343-2431 ext 62038) at Fidelity called me today about annuities.  He is in Cincinatti. 
He said there were two basic types:  Deferred and Immediate.  Deferred were more of an IRA product and you could not draw money out until you were at retirement age and seemed to have other restrictions too.  An immediate annuity allows monthly payments after you pay Fidelity a lump sum.  If I am 53 years old and I pay Fidelity $646,313 up front, they will send me $3000 per month ($36,000 per year) until I die.  If I want to have them guarantee that the payment will be made for at least 10 years, even if I die before that, then the up front payment goes up to $652,796.  On the "plain" (no guarantee) annuity, the rate of return is 36,000 / 646,313 = approx 5.57%

If GTN at age 79 were to give them $321,000 then he could get a monthly payment of $3000 ($36,000 per year) until he died.  His up front fee is much less because he will die sooner.  If he wants the guaranteed 10 year payout, his up front payment goes up to approx $396,000.  The increase to his up front fee for 10 year payout guarantee is much greater than Tayloe's because he will die sooner than a 53 year old.  Girls will get a somewhat worse deal because they statistically live longer.  On plain (no 10 year guarantee) annuity the rate of return is 36,000 / 321,000 = 11.2%.