No. of Recommendations: 1

I don't have my calculator handy, but I would guess the annuity numbers are monthly.

The annuity pay out assumes your heirs get nothing when you die. therefore, some of that pay out number is a return of your principal.
Additionally, the annuity is being more thorough about their calculations. They will have an Internal Rate of Return (IRR) which will be adding interest to the remaining principal each year.

Your 4% scenario was just the drawdown of the intial lump sum. You did not indicate what that lump sum would earn while it was sitting there.

I don't know if your site has a calculator that allows you to fiddle with both the rate of return on your assets and the rate of drawdon, if not there are some neat ones on the net. (Maybe someone here can point you to one).

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