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Okay, I have a question about my Cash Balance Plan.

My employer contributes a percentage of my income into the plan and the site has a calculator where you can estimate your results at a future date. Now, the calculator includes both a lump sum estimate and an annuity estimate.

My question is, if the lump sum estimate is say $175K and the annuity estimate is $1,100, is the annuity amount a monthly or annual estimate? By my calculations, a 4% withdrawal rate on the lump sum would be $7,000 per year, so I was thinking it must be a monthly payment estimate. However, if this is true, at almost twice the lump sum payout I'm surprised the advice here is to take the lump sum and do the investing ourselves.

On the other hand, if the $1,100 is ANNUAL, this would be a joke! Especially since it would just be for my lifetime and nothing left over for my DH once I'm gone. (There was one that would continue to pay him and the amount for me was $1,032 and $500+ for him.)

Now, if the payout is in fact $1,100 per MONTH and the advice to take the lump sum is due to there being nothing left once DH and I die to leave to heirs, this is not really a concern for us, as we have no kids and would prefer to maximize our income during retirement.

So, any thoughts?

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