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To: smoothsailing
I understand it is an annuity...

I don't understand the difference between that and a pension.

20 posted on 12/31/2011 7:35:35 PM PST by lonestar (It takes a village of idiots to elect a village idiot.)
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To: lonestar; smoothsailing; Outlaw Woman

lonestar,

This was in the news several months ago and looked at again last fall, and you are right... it IS an annuity he is drawing from.

An annuity is an insurance product which has been paid for by the investor (worker-investor), usually by which the worker has had some of their paycheck held back from their income throughout the years, those salary contributions having been placed into investments throughout those years to earn money.

Then, the earnings of that investment can be used for a life insurance benefit, a survivor’s payment, OR it can be used in retirement instead, being paid out in a lump sum or in monthly installments.

It sounds like Governor Perry chose to draw his annuity investment return throughout his lifetime instead of using it as a life insurance payout.

This is no big deal or even unethical action. If our government ever tells us we can not have the income earned through smart retirement planning investments, we are all in deep water.


48 posted on 01/02/2012 5:23:36 AM PST by casinva
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