|Posted: December 30, 2009, 5:07 pm - IP Logged|
Dpoly1 is absolutely correct. There is no question that King Dollar is heading for at least a serious devaluation. In addition, US Treasury Bonds are looking at a serious crash, probably within the next 24 months. The Chinese know that, hence their headlong rush into shorter maturities.
Given all of the above, how much sense does it make to put a lot of faith in a 25 or 30 year ladder of dollar denominated US Treasury Securities, which is precisely what the "annuity" comprises?
With respect to the tax issue, the Bush tax cuts expire at the end of 2010. The current administration is looking to rock and sock everybody making over $250,000 per year (and likely will extend that "hope and change" to a much lower threshold). California does not levy income taxes on California Lottery winnings.
Looks like a lump sum slam dunk to me, but, what do I know?