Tom's Life Bits

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===== another way to create your own annuity =====

I've read the thread on annuities with some interest, and would like to offer an alternate idea.   Suggest you take a look at the 17 billion $ mkt cap Loomis Sayles all weather bond fund.  Make sure to evaluate their holdings, currently averaging A quality.   You can go back all the way to 1996 (note, they did change from quarterly to monthly some time ago)  and see their payouts have been approximately the same.  They've also paid many special EOY distributions.  So far in '08 their monthly payouts per share have been .0569, .0714, .0857, .0786 and May's .0823.   Currently their forward yield is 7% (I never count in the special EOY's).   Dan Fuss (IMO) is absolutely the best bond picker in the country and their long term chart indicates I may be correct.  I spoke with Loomis Sayles yesterday (Friday) and was told rather bluntly that Dan Fuss is not going to retire anytime soon, he told his associates he's die at his desk.  Why pay commissions when this way, you can leave the capital to your estate or whomever you put in your will.  If you can afford to take out only 6% monthly you can reinvest the extra 1% to take care of inflation.   Just a thought!   Ron
*some day I'll get either completely fed up with watching the market & just put close to all of our NAV in that fund with some other in the higher yielding Atlantic Power (ATP.UN, ATPWF-this is not a trust), and maybe a bit of some other stuff to goose up the yield a bit more.   That is what my wife has been instructed to do (in writing) if I get struck by lightning on the golf course or whatever because she has ZERO interest in the market.

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