How to fairly compare an annuity to a bond

My elderly uncle is convinced that annuities are better than bonds because the annuity will not only pay more on a monthly basis than a similar bond investment, but also would keep paying over the remainder of his lifetime. While that’s true, it doesn’t tell the whole story. There’s a more accurate way of comparing the two.

Because there are so many annuity variants, not to mention bond types, we’ll compare a basic single-life single premium immediate annuity (SPIA) for a 65-year-old male to a 10-year U.S. Treasury bond to keep the comparison apples-to-apples as closely as possible. For those unfamiliar with these investment vehicles, the SPIA in this example returns a guaranteed monthly payment for the rest of your life primarily based on three factors: (1) the amount of principal you contribute upfront, (2) your age and (3) current interest rates. The Treasury bond pays a guaranteed amount of interest twice yearly, also based on current interest rates, but only for 10 years, at which time your original principal is returned.

Enchanté Boutique Hotel hires new manager


Courtesy of Laura Rose
Zachary Smith checks in as the new general manager at Enchanté Boutique Hotel.

As Enchanté Boutique Hotel bids adieu to long-term general manager Josh Steinhart, it says bonjour to successor Zachary Smith, who has similar experience at another local luxury resort.

According to a release from owner Abigail Ahrens and her team at Enchanté, Smith is a hospitality management professional with a degree from Indiana University and more than 10 years of experience in the industry.

Transactions for the week of July 3

Los Altos

317 N. Avalon Drive, Simms Family Trust to W. Chiu for $3,700,000

10594 Creston Drive, Lohman Trust to D. Chu for $2,400,000

Nature Gallery owner creates new '87Rocks' jewelry line


Zoe Morgan/Town Crier
Nature Gallery owner Carol Garsten wears a larimar and quartz necklace that she created for her new “87Rocks” jewelry line.

Carol Garsten, owner of Nature Gallery at 296 State St. in downtown Los Altos, launched her new jewelry collection, “87Rocks,” Friday, the first day of summer.

Garsten said her latest collection “presents jewelry with a bold geologic aesthetic.”

Real estate transactions: Who pays for what?

When you buy a house or condominium, there is already a bit of sticker shock, so all those little added fees that come up at sign-off can be a bit of a surprise.

Following is a breakdown of fees you should expect to see when you buy or sell a house or condo, and who typically pays them. Fees break down into lender, title and escrow, broker and city and county categories.

Committing to 'gift with meaning': local moms kick-start venture featuring work of stay-at-home artists


Melissa Hartman/Town Crier
An assembled BIZIBOT, designed for kids by Virginie Manichon of San Francisco, is among The White Mulberry’s selections featured in their customized gift boxes.

Los Altos resident and The White Mulberry co-founder Mansi Bhatia hands me a plastic bookmark to decorate, bake and gift to my father to show my appreciation on the day that specifically honors the ways in which he chiefly made me the person I am today.

Standing under a tent in 85-degree heat at the Los Altos Farmers’ Market, Bhatia and Tanu Pant, the woman with the concept that made their entrepreneurial dream a reality, walk children through a craft and advertise The White Mulberry’s custom gift boxes to those who troop along State Street.


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